AG ANALYTICS ⨉ LINDAB
Going in the right direction with greater certainty
How Lindab saved millions by avoiding investments in a new product customers weren’t demanding
Lindab faced a decision of whether to invest millions of Danish kroner in a new production facility for specific rustproof components. It was a new market for Lindab, which is an international group dealing with solutions to simplify construction and improve indoor climate. But would such an investment be profitable? Would the customer base be sufficiently large and, if so, how should Lindab address the market?
Our analysis gave Lindab the following insights:
- Precise knowledge about the customer base in a potential new market
- Saved millions by avoiding investments in a new product customers weren’t demanding
“We needed to know whether it would be attractive for us to enter the new market,” says sales director Puk Spencer from Lindab A/S about the reason for collaborating with ag analytics. The target group for the new product was companies within naval, foods, pharma, agriculture and contractors.
Lindab expected that end users would demand specific rustproof components. But it turned out not to be the case. The end users’ knowledge was low and specific preferences none-existent. End users wanted standardized rustproof components and expected that the systems they bought were functional and met industry standards.
“So we saved a couple of millions and a lot of time,” Puk Spencer concludes.
On the use of analysis in the decision-making process, Puk Spencer says:
“We obtain greater security for going in the right direction when we invest, develop strategy or prioritize resources. We have, for example previously with ag analytics unveiled what renovations housing associations had in their pipeline. That made it possible to optimize and use our resources better, because we could target our initiatives. Today it is clear that the predictions from ag analytics were spot on.”
ag analytics understand our needs well. They are thorough, but at the same time quick, and they are willing to optimize the process along the way, when it is necessary to secure the quality and to provide output we can use.
Lindab is a client at ag analytics. The collaboration involves, among other things, strategic market analysis, customer surveys and evaluation of potential.
Lindab is an international group that develops, produces, markets and distributes product and system solutions to simplify constructions and improve indoor climate. Industrial construction accounts for 80% of its turnover, while private customers account for 20%.
The company was founded in Sweden in 1959.
Today the group has an annual turnover of approximately 7 billion DKK and is established in 32 countries with 4,600 employees.
The stock is quoted on Nasdaq OMX Nordic Exchange, Stockholm and Mid Cap (ticker LIAB).
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