Turboshaft After-Market Positioning: A Strategy Based Approach

Due to its subjective nature, the concept of value is not one that is easily defined. Marketers often refer to a product's 'value proposition' as an explanation to why an operator should buy a product or use a service. This statement should convince a potential operator that one particular product or service will add more value or better solve a problem than other similar offerings. In the rotorcraft market, this value proposition is often tied to capabilities of the helicopter and is typically defined as a composite metric. This metric is then compared to the acquisition cost to get a sense of helicopter value. Helicopter manufacturer's marketing and sales departments then go to the market and sell the benefits, either in range, take-off weight, reliability, operating cost, etc… One major difference in the value stream of rotorcraft products as compared to typical consumer products is that it is standard for a second-level supplier, in this case the engine manufacturer, to offer its own services and support. This creates an environment where both the helicopter and engine manufacturer have direct contact with the end operator and can influence their perception of value. A method for an engine manufacturer to define value can aid the helicopter manufacturer, and ultimately, the operator, to make an informed decision regarding the right product for their mission objectives. In order to derive a metric for the concept of value for a helicopter engine, one must understand the important aspects from an operational perspective, as opposed to the technical focus typically associated to this type of product. This paper focuses on the derivation of such a composite metric by using terms that represent a product's reliability, maintainability, and capability as compared to its direct operating cost as the acquisition cost of the engine is transparent to the end operator. Looking at the helicopter engine competitive environment in such a way serves two purposes: one for the engine manufacturer to be able to gauge the competitiveness of their product, and one for the operators to understand an engine's value proposition and how it fits into the helicopter capabilities. The details of how the metric of engine productivity were derived will not be elaborated as they are considered intellectual property to Pratt and Whitney Canada, but the benefits and concepts of viewing helicopter engines in such a way can be discussed.