Overview:
A $1B general contractor, Adolphson & Peterson, seeks to maintain growth in a declining market
Adolphson & Peterson is a family-owned construction company with offices in six states and annual revenues approaching $1 billion. The company specializes in commercial construction, including schools, municipal buildings, health care facilities, office parks and malls. A&P is known for the high quality of its work and its superior customer service, even after construction is completed.
Potential:
Grow market share as competitors contract
Adolphson & Peterson is committed to growth, as evidenced by the recruitment of a professional CEO who has extensive experience in building and managing large, growth oriented companies. The cyclical decline in commercial construction was making it more difficult to win projects, as cash-strapped competitors increasingly low-balled bids to win projects of most any size. A&P realized that to continue to win projects and grow that they would have to be perceived as providing significant value beyond just price.
Realized:
A simple and differentiating value proposition and geographic expansion have enabled A&P to grow both market share and revenue
Extensive qualitative and quantitative research lead to the new A&P positioning: “Value beyond building.” The positioning reflects the differentiating aspects of working with A&P: an orientation towards pre-construction planning and end-to-end project management all with a focus on long-term financial ROI. A&P has also reoriented the firm as a GC that actively identifies opportunities to help keep post construction expenses to a manageable and predictable level.
Work:
Market Intelligence; Marketing Strategy & Planning; Communications
Our work extended from gathering accurate market intelligence to internal communications. Important general contractor competitors in each market were identified and assessed. Focus groups and interviews were conducted with A&P customers, prospects, field and office employees, senior management and the board, followed by a large scale quantitative study and analysis to validate and augment qualitative learning. Next, we developed and tested market positionings and value proposition concepts with customers and prospects comprising architects, engineers, developers, building owners and activist community group leaders. Finally, we developed and implemented internal education programs around the new positioning and value proposition through live training, intranet communications and management/employee conferences to all A&P employees.