Valorization strategy
Develop new sources of revenue by identifying new markets for your products, services or production capacity
For over 30 years, our specialised team has been helping manufacturers to identify new market segments for their products, services or production capacity, and to find new sources of growth.
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The key success factors of a valorization strategy
Valorization is an economically and socially advantageous approach for industrial players. It enables them to align their profitability (by identifying new sources of revenue) and sustainability objectives (it can be part of a CSR or circular economy approach, for example).
To ensure an optimal valorization strategy, it is essential to consider the following key success factors:
Before embarking on the exploration of potential market segments and players interested in your offer, it is essential to determine precisely what you can valorize.
What are the functions and quality levels of the co-product to be valorized? What production process can you add value to, and what kind of value/type of product will it provide? What are the specific characteristics and added value of your product or service? These are just some of the questions that need to be answered to determine what you can valorize.
A valorization strategy is similar to a commercial strategy. That’s why it’s vital to define the value proposition of the elements (co-product, product, service, production process, etc.) that you wish to valorize. A value proposition is the set of benefits and advantages that your offer brings to the target stakeholders. It must meet the needs and expectations of the target stakeholders by highlighting the unique characteristics and competitive advantages of the offering. To define it, it is therefore key to understand the existing supply and demand in the target markets.
How can I build a solid value proposition? How can I adapt my value proposition to the different target market segments?
Before approaching potential companies that might be interested in your offering, it is essential to understand their markets: which market segments use my offering, who are the target customers, what are their needs, what is the level of competition, and how does my offering make a difference? Once the markets are clearly understood, the value proposition can be finalized, and must be adapted to each targeted market segment.
It is also essential to prioritize market segments according to their attractiveness (demand potential) and your ability to penetrate them (level of competition, differentiating factors, pricing strategy, etc.).
With a multitude of applications and segments, a good way of prioritizing may be to test the market’s receptiveness by talking to a few potential prospects, before continuing with the market analysis.
How do you identify the market segments of interest? How can I assess the receptiveness of target players to my offer?
How we support you in your valorization strategy
You are looking for potential new markets for the valorization of your assets? Our team can help you with your valorization strategies, whether you are looking to add value to co-products obtained during transformation processes or to identify new markets for your existing products.
Examples of recent valorization strategies carried out for our clients
Valorization of an antimicrobial protection technology in the hygiene and health sector
We assisted an industrial client in the development of its antimicrobial protection technology. Our client had a technology for protection against many microorganisms. Until then used in a variety of markets (food processing, textile industry, automotive, …) and for many applications, our client wanted to promote its technology in the hygiene and health sector.
After a detailed mapping of the value chains of the new targeted sectors and a competitive analysis, our team identified and co-selected with our client priority market segments, then tested the market receptivity, needs and expectations of prospects.
This comprehensive analysis allowed our client to decide on a strategy to prioritize its market approach: which segment, which sub-segment, in which order of priority, … and to build a commercial approach to differentiate itself from the competition.
Valorization strategy of distillery co-products for a beverage player
One of our customers, a leading alcoholic beverage company, had the ambition to reduce its carbon footprint by 50% by 2030. However, the valorization of distillery by-products was energy-intensive.
Alcimed’s role was to assist the technical director in benchmarking the technologies used in combustion, gasification and other thermo-chemical technologies for wet co-products. We then evaluated the feasibility of some of these technologies for our client’s co-products.
Alcimed was thus able to recommend two relevant options allowing its client to valorize its co-products by optimizing its energy consumption!
Economic valorization strategy for a research institute
Support of a public research institute on the definition of its valorization strategy. After having segmented our client’s activity into 36 areas of activity, Alcimed selected 14 strategic areas with high potential for economic valorization.
Following this work, we carried out 14 market studies (context elements, positioning on the value chain, identification of major principals and competing public institutes, ID cards of major competitors, market drivers and locks, maturity, SWOT analysis) in order to define a strategic framework for defining the institute’s economic valorization strategy: main partners and projects, typology of partners, key valorization information, major potential customers, target countries/areas, key offers to be put forward, key success factors and valorization pathways.
Valorization strategy for biohydrogen production
We assisted a French industrial player in its strategy to valorize resources for the production of biohydrogen.
Our client first wanted to obtain an overview of the market and industrial applications of hydrogen in Europe, as well as the technical specifications of the hydrogen used by the industrial players investigated. Secondly, the objective was to evaluate the interest of potential customers – industrial gas suppliers – in developing a biohydrogen supply offer.
For this purpose, Alcimed conducted interviews with experts of the sector as well as with industrial gas suppliers in order to evaluate their interest in proposing biohydrogen instead of conventional hydrogen to their customers. Finally, we selected 2 applications where the use of industrial H2 was compatible with a biohydrogen supply.
Identification of polymer valorisation opportunities for a leading industrial company
One of our customers, a leading industrial company, wanted to assess the valorisation opportunities for two new types of biodegradable star polymers: bioadhesive hydrogels and self-healing elastomers.
To do this, our team identified and characterised the industrial players likely to be interested in these technologies. We then held discussions with them to test their receptiveness, understand the possible uses of the materials and envisage potential collaborations between these players and our customer.
This study enabled us to assess the added value of our customer’s products on the market and to select various possible valorisation routes.
Market study of insulation to test the receptiveness of an insulating product with a view to valorisation
One of our customers in the construction industry was considering investing in a start-up capable of transforming one of its by-products into insulating panels. However, in order to decide whether or not to invest, our client wanted to assess the market interest in this type of panel.
With this in mind, our team studied the insulation market in order to understand the interest in the product manufactured by the start-up and to identify potential partners with whom our client could join forces to develop and market these insulating materials.
Thanks to these investigations, we were able to guide our client in his investment decision.
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Founded in 1993, Alcimed is an innovation and new business consulting firm, specializing in innovation driven sectors: life sciences (healthcare, biotech, agrifood), energy, environment, mobility, chemicals, materials, cosmetics, aeronautics, space and defence.
Our purpose? Helping both private and public decision-makers explore and develop their uncharted territories: new technologies, new offers, new geographies, possible futures, and new ways to innovate.
Located across eight offices around the world (France, Europe, Singapore and the United States), our team is made up of 220 highly-qualified, multicultural and passionate explorers, with a blended science/technology and business culture.
Our dream? To build a team of 1,000 explorers, to design tomorrow’s world hand in hand with our clients.
A valorization strategy consists of identifying elements that can be valorized in one’s activity with a view to (re)introducing them, or reselling them, to other players up or down the value chain, or in other market segments. These are often materials generated during the manufacture of products: co-products or waste. Valorization of these materials is beneficial because it avoids waste and the costs of destroying or recycling residues, while generating potential new revenue for the industry. It can also mean products or services, or production capacity that can be valorized by players in other sectors.
There are many advantages to a valorization strategy for companies:
- Adding value to products or services generates new income and improves profitability.
- In a CSR approach, and particularly in the case of co-products, valorization is not just economic. Reselling co-products rather than treating them as waste is a virtuous step for the environment.
- Finally, not only can the profits generated by valorization be reinvested in value-creating activities such as R&D and innovation, but a valorization strategy also makes it possible to minimise risks by diversifying target markets and customers.