Benchmarking Study of Alternative Power Industry
Updated: May 21, 2020
With increased dependency on the redundancy of power sources (for business continuity) the Gensets’ market has seen exponential growth in sales. This can be attributed to many parameters from providing a unique selling proposition, in after-sales services, to innovation-driven growth in the industry. Genset is further expected to have a CAGR of 3.5% in European markets.
Buying a Genset is no easy deal, especially when one must purchase in bulk. The technicalities and specifications, alongside large ticket price and brand name, distinguish one from the other. One would always purchase a set which produces less noise, is compact, meets all the compliance requirement and is the best value for the money paid. Always evolving emission norms, laid down by the local government, forces OEMs to constantly innovate and also get rid of non-compliant systems promptly to avoid loss on unsold inventories.
To better understand which Genset brand and model, offers the best value for money, it’s important to benchmark the product against the market. It is in the best interest to carry out a cost-benefit analysis for a product to understand the point of differentiation and hence aim for a bigger pie of the appropriate market segment.
There were several OEMs to choose from, including but not limited to CAT, Cummings, Kohler SDMO, Himoinsa, OnisVisa, Greenpower, FG Wilson.
To holistically understand the market, it was important to implement a 4-dimensional approach, where customers, OEMs, local compliance as well as the equipment could be well understood for deriving roust co-relations.
It was important to understand discounts and promotions, value propositions, technical specifications, after market services etc for an efficient benchmarking study.
Primary research, globally, was carried to adjudge the qualitative as well as quantitative analysis of various Genset models and customer perceptions.
Secondary research was done to identify insights on purchasing behavior and brand perception.
Secondary research also helped in identifying the general market perception for various OEMs alongside technical specifications of various models.
Brand market value calculation and cost-benefit analysis were done, across the board and based on the target customer segment, using a self-designed multi-dimensional evaluation system.
Regulatory systems were studied, both through primary and secondary research, to determine the mandatory and optional compliances.