Factory Automation Case Study

The Challenges:


An emerging vendor in the factory automation market was scouting for possible pathways to expand its consumer base. The company was facing strict competition from vendors who exercised a strong foothold in the market. The nature of challenges was two-fold as the company had to keep up with its pace of manufacturing, whilst ensuring that the new manufacturing lines/products were well-received and reciprocated to by the end-users. As the factory automation industry functions in real-time, it was also necessary for the company to continually upgrade its technologies. The sales graph of the company followed a staggered trajectory with inconsistent patterns of abrupt hikes and slumps. This was suggestive of a weak positioning strategy by the company, which was further characterised by the absence of a definitive appeal and value proposition to its offerings. With a large pool of industries that consider factory automation as a panacea to solve their manufacturing issues, the company had a lot that could be capitalised upon. However, the company was struggling to strike the right chords with the market dynamics.



Factory automation is a multifaceted area that caters to a large pool of industries such as chemicals, fertilizers, automobile assembly, plastics, aerospace, aviation, and food processing among others. It is important for factory automation vendors to understand the intrinsic needs of each of these industries in order to break into their psyche. Furthermore, vendors also need to build value around their products to attract the end-users. It is important for the end-users to acknowledge the congruence of a product with their real-time requirements. Factory automation has become a new-age tool that is accelerating the wheel of digital transformation. Besides, several companies have quantitative metrics to showcase the positive impact of inducting factory automation technologies across their manufacturing lines. It is important for emerging vendors to provide well-rounded projections with regard to the efficiency and performance of their products and offerings. Operational and financial efficiency are important value points that can compel end-users to subscribe to the offerings.



Transparency Market Research suggested the company to take a balanced approach that combined robust positioning of their current products and a rather passive route to introducing new product lines. This way, the company could increase its scale of revenue generation, and only dedicate a nominal part of those revenues to manufacturing. The aforementioned strategy was meant to improve the sales graph of the company, and generate more profits in the long term. Transparency Market Research proposed to develop an arithmetic function for the company that could help them in deciding the level of investment that should be spared towards new technologies. The investment was a function of the revenues generated from rigorous, robust, and extensive promotion and marketing of existing products.   TMR also suggested the company to reach out to manufacturing units operating in the most popular industries such as automation, food processing, and fertilizers. The willingness of these industries to experiment with new technologies, backed by their paying capacity, is an attractive flashpoint for the factory automation vendors. In addition to this, TMR also used the average spending of each of the industries on digital transformation to gauge their serious towards investing in factory automation. In this way, TMR gave a comprehensive solution pitch to the client.

Transformation and Results:

Transformation and Results

At the outset, the client used its database to reach out to new and existing manufacturing units in their database. The renewed positioning strategy of the company captivated several of the units who got back with the request to understand more about the offerings. With enough insights about the existing trends, pain points, and psyche of the companies in various industries, the client used a customized approach to position their products to each of the companies.   On the manufacturing end, the arithmetic function provided by TMR helped the client in keeping their spending under control. It supported a progressive growth model that kept business lapses or layoffs at bay, and caused a continuous increase in net sales and profits. Moreover, the suggestion to pitch to unexplored industries helped the company in clocking on extra clients who subscribed to subsidiary services. The company was finally able to achieve a more consistent sales graph that saw an ascending pattern.