Background and challenge

A manufacturer of emissions management solutions for the upstream oil and gas sector wanted to refine its customer value proposition to better position the business and maximize its opportunity to attract more customers. Important considerations for the new positioning included increasing customer demand for environment, social and governance (ESG) solutions and digital tools and customer need to operate within a dynamic regulatory environment.

Approach and recommendations

The company engaged L.E.K. Consulting to gather answers to questions that would be central to the new value proposition. Specifically, they wanted to know what customers currently valued from emissions management solutions and how that might change, given the accelerating adoption of ESG practices.  

To get to the heart of the question, we conducted a voice-of-the-customer analysis, interviewing exploration and production (E&P) operators of various sizes — from super majors to leading independents — as well as private equity fund sponsors. As part of the analysis, we also looked at how operators valued digital solutions such as emissions measurement and monitoring technologies. We also captured expectations for the regulatory environment under the Biden administration and its implications.

Based on our research, we developed a set of recommendations for an updated value proposition that shifted the company’s brand profile from emissions control product manufacturer to emissions management and ESG solutions partner.

Results

The study provided the company with a clear understanding of how customers viewed its brand relative to those of its peers. As a result, the company was able to refine its value proposition from that of a traditional oilfield equipment and service company to one that better reflected its core capabilities and its ability to deliver both ESG and digital solutions. 

The research also helped the company envision its future state in the context of evolving market trends, and suggested which new product categories, digital solutions and end-markets it should pursue.

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