Converting the North American Decking Market
Problem: Hilti had targeted its "direct fastening" technology - using propellants to drive nails into concrete or steel - at the large and attractive North American decking market where decking involved attaching profiled metal sheets for floors or roofs to a building's frame, mostly by welding. However, after several years, Hilti had still not succeeded in converting deck installers to its technology, and market share was in single digits. Solution: Decrease conversion barriers for all players in the value chain through a multi-dimensional approach consisting of offering product and service innovation, engineering support and new marketing tools that demonstrated the increased productivity, quality and worker safety compared to welding. Key steps: 1. Develop a customized product offering addressing country- and segment-specific requirements; 2. Launch a new service and transaction model to decrease upfront investment and switching costs; 3. Develop targeted sales and marketing initiatives to gain support from the complex network of stakeholders in the value chain. Learning objective: Understand what successful strategies can be employed to capture value from innovation in a B2B environment that represents many barriers to adoption for new technology; illustrate key steps taken by the company showcased to re-launch an innovative product in the B2B construction market that initially failed to capture market share.