A leading player active in the production of oilfield chemicals sought to expand its product portfolio; however, it was unsure about whether it would be a profitable venture or not.
A report was prepared on the oilfield chemicals market, considering market aspects likely to affect the market.
In secondary research, we studied and ascertained various aspects of the report and prepared the appropriate market segmentation. While several segmentations were possible, only the key segments were taken into consideration. The client then ran the segmentation before proceeding to the next stage.
In the primary research, we conducted interviews with industry experts and knowledge brokers to validate secondary research findings. This step also helped us understand the technical and non-technical factors of the product, which would influence the regulatory, technological, and consumer landscape of the market.
Our team studied the consumer behavior and factors influencing the demand for oilfield chemicals, as consumer behavior dictates the need for oilfield chemicals in applications such as well stimulation, cementing, and drilling. Besides, other important aspects of the value chain were also identified, such as raw material suppliers and oilfield chemical distributors.
The market was priced based on the demand, popularity, and cost of manufacturing the product type. Price fluctuations were based on regulatory policies and geopolitical factors, such as international trade relations and sanctions, which had the potential to either smoothen or disrupt the supply chain. The report also covered the cost structure, which mentioned the percentage of capital investment required in the manufacturing or production of oilfield chemicals.
The client now had a clear vision of how to move ahead with the expansion. The report also included information about the key players involved in the market and various strategies the companies have adopted, along with the operational and marketing strategies these companies are likely to adopt in the years to come. Additionally, the report also included recent developments, including product launches, product developments, and partnerships with research institutes to develop new products or modify operations.
Our report aided the company in choosing a supplier from a stable location, economically, and politically, and identifying potential bottlenecks in the value chain of the market. It also highlighted the need for building an enterprise-wide category management methodology to reduce the company’s inventory cost and increase profit margins.