Strategy: Case Study 2

Determine viability and market entry strategy for a telematics product for a Japanese boat engine manufacturer.

Client

Top Japanese manufacturer of engines, power equipment, musical instruments

Business Challenge

As a leading manufacturer of outboard recreational motors for boats, advice was sought on the potential for a marine telematics product in the U.S.

• Technology existed in current production engines to analyze real–time performance and to collect data on usage and maintenance needs.
• Moving this data in real time off–board required creation of an telematics infrastructure including a network, call center, data warehouse, etc.
• Manufacturer was interested in assessing the potential market for this service, price points, and additional content that might make the product financially viable.

The Solution

Conduct research study of market for marine telematics in the U.S. within the target segments.

• Conducted interviews with boat/engine dealers.
• Conducted both paper–based and online surveys with target markets.
• Analyze competitive products as well as plans of other engine manufacturers.
• Created economic model of the new business.
• Provided recommendations based on entire business case.
  

Business Benefits

• Client developed a deep understanding of the U.S. marine industry and their customer base.
• Recommendation to not enter the market was accepted by the client, saving millions of dollars in what would not have been a lucrative line of business.

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