Dow Corning has relied on innovation since its inception but is now facing increasing commodotization of a significant part of its product line. The case is about how customer needs change as markets evolve and mature. In response, the company applied a customer-focused marketing approach to understand how their needs - and therefore customer segments - had evolved over the years. The main challenge was to identify the segments it wanted to continue to serve, the changes required to the business model, and how to deal with increasingly divergent and conflicting customer needs.
This case highlights the importance of customer-focused marketing in creating profitable value. It highlights key concepts related to segmentation, targeting and brand positioning in a B2B context, in an industry which is maturing.
- Portfolio management
- Business model innovation