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Europe - 2007
Alcoa Growth Process Serves as Primary Growth Generator
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To provide a solid foundation for its new marketing function, Alcoa Primary Metals Europe (APME) deployed the Alcoa Growth Process (AGP) to broaden its understanding of the European market and uncover market share growth in billet, rod, and foundry ingot products.
APME first conducted an opportunity analysis of the three market segments and then completed an internal capability assessment to understand its current projects, capabilities, and gaps. From this, the BU developed growth hypotheses with 25 benefit statements to be tested on the current customer base and potential customers.
Qualitative and quantitative research followed, with telephone interviews conducted in one of five languages with 132 external customers, and an online questionnaire in English completed by 10 internal customers. The research looked at both stated importance (the customer's conscious perspective) and derived importance (the customer's unconscious perspective) to uncover the supplier benefits that drive purchase intent.
The APME value proposition that resulted from the research is based on customer intimacy, with the points of differentiation being responsiveness, commitment, and an understanding of customer needs. The process also uncovered a significant growth opportunity for value-added products.
To capture this growth, APME developed a business strategy and supporting action plan that created a customer planning process, established growth goals for each strategic customer, provided organizational alignment, streamlined customer service processes, and redesigned delivery and other processes to improve performance and capabilities.
For APME, the Alcoa Growth Process has provided a much better understanding of the European market and clear targets for growth. It has also helped improve communication across the organization and with customers.
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