Abb Electric Case Study

993 words - 4 pages

Immediately, we would go to through the ABB descriptor data and note the companies with the highest annual spend at ABB. We assume that these companies are existing ABB customers and are already using ABB as main provider of goods. We would then try to note any correlations with annual spend and the district in which the customer is located.
The data shows that of 88 responses provided by customers in ABB’s area, 18 of these responders are already working with ABB. 11 of the 8 existing customers are spending over $500,000 per year on ABB goods which indicates loyalty. To increase market share, ABB would benefit mostly from capitalizing on its “competitive segment’s” by taking customers ...view middle of the document...

These amounts are shown in Table 2.
Table 1
District Annual Purchases by ABB customers (in 000’s)
1 $3,857
2 $13,450
3 $4,217
Total $21,524

Table 2
District Annual Purchases by competitors (in 000’s)
1 $19,502
2 $40,189
3 $21,544
Total $81,235

In order to obtain market share and win over new customers, ABB should take advantage of the fact that they already have a great customer base in district 2 and they should focus their new marketing program in that district first to acquire new customers from their competitors. . The marketing strategy will have to execute in different districts for different customers.

2.) Use the choice modeling approach based on the responses provided by 88 firms from your region. The data consists of the evaluation of ABB Electric and the three main competitors on eight variables: (1) Price, (2) Energy losses, (3) Maintenance requirements, (4) Warranty, (5) Availability of spare parts, (6) Ease of installation, (7) Salesperson problem solving support and (8) Perceived product quality. Perform a customer-loyalty–based segmentation for your customers and prospects.
Which variables are the key drivers of choice in this market?
Based on your analyses, on which firms would you focus your efforts? Why?
The survey questionnaire was sent out to 7,000 key decision makers at various utility companies, rural electrification cooperatives (RECs), municipalities and industrial firms that purchase equipment. The goal was to gather data on ABB and its three major competitors: GE, Westinghouse, and Edison. Completed questionnaires from 40% of the sample were received back and data was collected from 88 individual purchasing firms. The eight variables of perception in the survey are listed in Table X.
Table X: Variables of Perception in the Survey
Energy Losses
Maintenance Requirements
Availability of Spare Parts
Ease of Installation
Salesperson Problem Solving Support
Perceived Product Quality


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