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BUSINESS CHALLENGE

MnM’s client, who is a world leader in innovation, manufacture, and marketing of lubricant additives, was interested in the project involving “Strategic Assessment of the COFI Market in Russia and China.”

The client initially carried out a global study on the COFI market to develop a detailed understanding of its current and future scenario for applications such as crude oil extraction/refining, piping and terminals. Depending on the outcome of that study, the client wanted to get a deep-dive study done on the COFI market in Russia and China to be able to build an effective go-to-market strategy.

The objective of the study was to provide the client with a detailed competitive landscape, customer landscape, industry structure, value chain, pricing analysis, and strategic insights for the market of COFI in Russia and China.

MnM APPROACH

1. Methodology Adopted by MnM: MnM carried out a detailed search for the manufacturers/suppliers and customers of COFI in Russia and China through secondary research, such as industry associations of oil field chemicals manufactures including EOSCA, ROGPA, CPCIA, CEFIC, ECHA, and CCRIA, to orient the project and develop the industry structure (including manufacturers/suppliers, distributors, customers, associations, regulatory authorities, and allied stakeholders). MnM carried out in-depth primary interviews with manufacturers/suppliers and customers of COFI in Russia and China for key information required for completing the project. Major knowledge sources were sales, marketing, production, R&D, logistics, and technical specialists employed by manufacturers/suppliers of COFI. The personnel in oil field service (OFS) companies, crude oil extraction/refining, piping and terminals companies were interviewed to know the market scenario, industry structure, and value chain of COFI in Russia and China.

2. Actual Solution Provided

Through the detailed outcome of the study, we provided inputs on-

• Market size of COFI by application, product type, and supplier; COFI supply chain analysis & influence level of participants in the supply chain on one another (OFS providers impact/relation on raw material suppliers); profit margin at each level; and degree of fragmentation.
• Competitor benchmarking and analysis on plant location, service structure, distribution channels, products & application, COFI raw material price & profit details, SWOT analysis, key differentiating & success factors, and their marketing & supply strategy.
• Customer analysis on their COFI suppliers, chemistry consumed, commercial terms, market price, product portfolios, market trends, unmet needs, criteria for supplier selection, and their willingness to shift to a new supplier.
• Market entry strategy and recommendations for Russia and China.

VALUE DELIVERED:

• MnM’s client was able to understand the current scenario of the COFI market in Russia and China. The study helped the client to benchmark itself against the existing competitors in the market and identify the potential customers for future business in Russia and China.
• The value chain analysis and pricing analysis for COFI in Russia and China helped the client to get a clear picture of competitors present in these countries and develop a strategy to enter these markets.
• MnM recommended to the client the strategies, such as collaborations and joint ventures, to enter the lucrative markets.