Startup MRO Identifies and Leverages Competitive Advantage Leading to 300% Increase in Sales

Startup MRO Identifies and Leverages Competitive Advantage Leading to 300% Increase in Sales

Situation at Hand

The client, a startup corporate aviation engine MRO, had been operating for three years with one large customer. In order to save operational maintenance costs, the customer had invested into the start-up and owned 80% of the company. Although the client could save customers up to 50% on maintenance, they were experiencing challenges growing sales due to a lack of reputation.


Problem to Solve

While the customer represented $15M in revenue for a specific fleet of engines, the client faced difficulties growing it’s customer base. The client was competing with the OEM’s and established MRO channels. The market was dominated by an engine OEM with 70% market share and the client had no reputation in an industry where many buyers won’t do business with a company that hasn’t existed for more than 10 years. The client required assistance identifying their competitive advantage.


Approach and Solution

For the duration of its existence, the client had not identified a clear value proposition. Traditionally, OEM’s that dominate the market require customers to sign a maintenance contract even though the engines do not require significant maintenance the first 10-15 years in service. The value proposition developed for the client was that customers only had to pay for the services they needed, instead of collecting their money in case future repairs were required.

Holding direct customer meetings and hiring a marketing firm drove results. Leveraging the services of the marketing firm extended brand awareness through social media and other channels. The clear value proposition articulated the competitive advantage.


Results

300% increase in third-party sales…within the first six months.

$70M in strategic cost reduction…over the next ten years.

If you would like to be introduced to this Advisor, contact New Discovery.

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