Refrigeration Maker's Entry Into B2B Markets: Segment Choice and Go-to-Market Plan

Quick Overview

A product strategy interview question about how a refrigeration manufacturer should expand into selling to businesses. It tests segmenting the commercial market, choosing a beachhead that fits the company's strengths, shaping the offer and go-to-market, deciding whether to build, partner or acquire, and measuring success.

Refrigeration Maker's Entry Into B2B Markets: Segment Choice and Go-to-Market Plan

Company: Asana

Role: Product Manager

Category: Product Design & Strategy

Difficulty: medium

Interview Round: Other

You work at a company that makes refrigeration products, and you are asked how it should expand into selling to businesses. Explain which business customers you would go after first, what you would offer them, how you would reach them and how you would judge whether the expansion is working. ```hint Not one market "Businesses" covers buyers as different as a café, a supermarket chain, a beverage brand and a hospital pharmacy. Compare a few of them on what they need from refrigeration and on how close those needs are to what your company already does well. ``` ### Clarifying Questions - What does the company sell today, and through which channels: home refrigerators through retailers, or other products as well? - What is the expansion meant to achieve: new revenue, better margins or less dependence on consumer demand, and over what time frame? - Is the company open to partnerships or acquisitions, or must it build commercial products itself? - Which geography should the expansion start in, given that food-safety and energy rules differ by country? ### What a Strong Answer Covers - A segmentation of business customers and a reasoned beachhead based on market attractiveness and fit with the company's strengths. - How business buyers differ from household buyers: total cost of ownership, uptime, service, compliance and the buying process. - A differentiated offer for the beachhead, with the channels and sales motion it needs. - A build, partner or acquire decision and a phased plan with gates between phases. - Success metrics, guardrails for the existing business, and the main risks such as channel conflict and service costs. ### Follow-up Questions - Your retail partners worry that selling to businesses will undercut them. How do you handle it? - Would you sell equipment outright, or offer refrigeration as a monthly service with monitoring and maintenance? What changes for the company? - A competitor with a large commercial service network cuts prices in your beachhead. How do you respond?

Overview: A product strategy interview question about how a refrigeration manufacturer should expand into selling to businesses. It tests segmenting the commercial market, choosing a beachhead that fits the company's strengths, shaping the offer and go-to-market, deciding whether to build, partner or acquire, and measuring success.

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Asana
Sep 6, 2024
mediumProduct ManagerOtherProduct Design & Strategy
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You work at a company that makes refrigeration products, and you are asked how it should expand into selling to businesses.

Explain which business customers you would go after first, what you would offer them, how you would reach them and how you would judge whether the expansion is working.

Clarifying Questions Guidance

  • What does the company sell today, and through which channels: home refrigerators through retailers, or other products as well?
  • What is the expansion meant to achieve: new revenue, better margins or less dependence on consumer demand, and over what time frame?
  • Is the company open to partnerships or acquisitions, or must it build commercial products itself?
  • Which geography should the expansion start in, given that food-safety and energy rules differ by country?

What a Strong Answer Covers Guidance

  • A segmentation of business customers and a reasoned beachhead based on market attractiveness and fit with the company's strengths.
  • How business buyers differ from household buyers: total cost of ownership, uptime, service, compliance and the buying process.
  • A differentiated offer for the beachhead, with the channels and sales motion it needs.
  • A build, partner or acquire decision and a phased plan with gates between phases.
  • Success metrics, guardrails for the existing business, and the main risks such as channel conflict and service costs.

Follow-up Questions Guidance

  • Your retail partners worry that selling to businesses will undercut them. How do you handle it?
  • Would you sell equipment outright, or offer refrigeration as a monthly service with monitoring and maintenance? What changes for the company?
  • A competitor with a large commercial service network cuts prices in your beachhead. How do you respond?