3.4.1 Potential analysis

The vast majority of appropriate key accounts will be in the biggest market segment, the Chemical Processing Industry (CPI). This industry is quite fragmented (includes all sorts of chemicals, fertiliser, pesticides, oil refinery and petrochemical, metal mining, Pulp & Paper). The reason for the emphasis on CPI is the high loop potential with a high share of consumables, particularly ph sensors. The share of wallet of MTPRO within CPI is rather low compared to the pharmaceutical industry, where we typically have a medium to high share of wallet. The 20 biggest potential KA’s of MT-CIS are all in the CPI. Figure 9 shows the determination of the annual sales volume per CPI key account. It is based on data provided by MT-CIS. Based on the assumption that all 15 key accounts are in the CPI the total annual purchase volume can be calculated.

account in CIS" class="wp-image-9071 size-full" height="518" src="https://sgbs.ch/wp-content/uploads/Figure-9-Potential-analysis-of-a-prospective-CPI-Key-account-in-CIS.png" width="612"> Figure 9: Potential analysis of a prospective CPI Key account in CIS

1 Source: Calculation of MT-CIS – appendix 3
2 Source: Split of loops for pH : DO : Conductivity : Turbidity with ratio of 60 : 5 : 30 : 5 – according to interview with Chemical Segment Specialist Stefan van der Wal – appendix 3
3 Source: Figures according to interview with Chemical Segment Specialist – appendix 3
4 Source: Based on average net realised prices according to calculation of MT-CIS
5 Source: Calculation of number of loops * average loop price of 4000 USD (based on MT-CIS price list)
6 Source: According to interview with Alexander Chernov of MT-CIS, appendix 3
7 Source: Shortened replacement cycle from 12 to 6 years due to implementation of Instrumentation Modernisation ( chapter 6.2.1, figure 19, page 46 )
8 Source: Interview with Marcus Vayhinger, Business Development Manager MTPRO – appendix 3

The total annual purchase volume is equal to the total sales potential for the 15 selected key accounts. In case some of the selected key accounts in some countries are in the pharmaceutical or food & beverage industry the total annual purchase volume has to be recalculated for those accounts. Since only reliable data from MT-CIS are available the potential analyses revolves around the assumption that all 15 selected Key accounts are in the Chemical Processing Industry. This potential analysis needs to be conducted individually for every country. All data need to be adjusted accordingly. That means there might be variations from country to country.