Differentiating a Component Part: A Tactic for Gaining Entry Into Mature Industrial Markets

This article presents an examination of the strategies adopted by a company which manufactures and distributes automotive gaskets as component parts. The article focuses on the company’s plans to extend their product line and diversify the industrial markets to which these extended products would be distributed. The issue of later entrance into mature markets is discussed and the primary research undertaken to identify relevant value propositions for each of the targeted industries is detailed. Finally, the article presents summary financial data that validate the success of the overall plan of action. An abbreviated version of this article received an Outstanding Paper Award in the Marketing Strategy; Product and Pricing Issues track at the MMA Conference held in Chicago during March of 2011.