What is the Building Construction Market?
Real estate developments and construction projects that require a high volume of materials and involve a process of supplier analysis and selection (specification), considering both technical and commercial variables.
Examples of participants in the Building Construction Market
● Developers
● General contractors
● Builders
● Architecture Firms
● Retail Chains
● Government
Main business challenges that drive the need for this type of strategy
- Difficulty in positioning the portfolio and building a compelling value proposition.
- Challenges in increasing market share.
- Complexity in service delivery due to the presence of third-party channels.
- Third-party channels have distanced the relationship between the manufacturer and the end customer.
Methodological approach for an effective strategy design
Market Research
- Market Insights
It is essential to identify the participants within the Building Construction Market value chain and develop a comprehensive understanding of the industry through research and interviews with key stakeholders, in order to identify:
- The key decision-makers in the selection process of a product or service.
- Who decides what product to purchase, from which supplier, and at what time.
- Main decision variables
- Market Sizing
It is necessary to develop a product-level forecast to enable market size estimation and market behavior analysis, thereby facilitating informed strategic decision-making.
- Data collection: Comprehensive and reliable sources for in-depth analysis at various levels of aggregation.
- Determine parameters: To accurately define market sizing at the product/service level.
- Market Forecasting: Parameterized with socioeconomic variables to project market trends.
Segmentation and Value Proposition
In the Building Construction Market, based on Delphus Consulting’s experience, 4 behavioral variables have been identified to classify submarkets into segments and design a tailored value proposition for each. However, these variables may vary depending on the product or service:
Business Strategy
- Brand: In the Building Construction Market, establishing a leading brand is crucial to ensuring that its product attributes and perceived value align with the priorities and expectations of each segment.
- Portfolio: A winning strategy must be built on a customized portfolio designed to meet the specific needs of each segment.
- Service Model: The optimal approach is to establish a specialized sales team for each segment, possessing in-depth expertise and strong relationship-building skill tailored to the segment’s profile.
- Go to Market: The Go-To-Market strategy should facilitate the effective execution of the defined value proposition (portfolio – pricing – service) by optimizing direct interactions between the sales team and business partners (such as distributors) and/or digital channels.
- Marketing Experience: An operational model that enables effective customer engagement is essential. This can be achieved by optimally combining of various product display channels, including visibility points, catalogs, digital platforms, and customer relationship events.
Operational Model
To ensure effective execution, the operational model must be aligned with the business strategy. The following are key examples that should be developed to address the specific needs of the channel.
Implementation Plan
For a successful implementation, the following must be established:
- Clear Objectives
- Timeline
- Budget
- Roles and Responsibilities
- Training
- Monitoring and Control Plan
Expected Benefits
- Increased sales volume within the Building channel.
- Profitability optimization based on the value generated in the specification process.
- Market share growth by segment in the Building Construction Market.
At Delphus Consulting, we assist in diagnosing, designing, and implementing customized solutions that effectively bridge the gap between your company’s strategy and its execution.
