Competitive edge and stronger market position for a traditional mechanical product
Competitive edge and stronger market position for a traditional mechanical product.
Initial situation:
The client had been searching for a way to innovate their traditional mechanical product for a long time. For three years, they invested in improving construction, design, and materials. Even though the technical results were solid, customers did not appreciate the improvements.
Proposed solution:
Through our collaboration, we introduced a new perspective: adding electronics and a mobile app to the product — bringing a competitive advantage where no one expected it.
We developed electronics and an application that took the product to the next level. Sales increased by 10%, market position improved, and the product could be priced 5% higher.
Summary in numbers:
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Annual sales growth of 8%
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Higher product margin by 5%
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Cumulative margin growth in the first 3 years: 1,880,000 EUR
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Investment into development: 120,000 EUR
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Result: Strengthened market position and higher margins