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Industrial Decal and LabelIndustrial marketing success storyKoch Group is a 40+ year old industrial marketing consulting firm providing a broad gamut of industrial marketing assistance activities to small and mid-sized manufacturers. We have over 35 years of specialized expertise in manufacturers' agent identification, screening and contracting. Koch Group consultants assisted this company in the identification, screening, interviewing, and selection of a high quality sales agent and helped them prepare a contract to formalize the agreement to develop identified potential in the automotive market. Within the first year, incremental sales had increased $750,000. SITUATIONLocation: Midwest This 50+ year old family owned company was a producer of industrial and commercial product identification decals and labels and had experienced 5-6 of years of flat sales in a growing economy. Primary sales responsibilities were handled by an old network of manufacturers' agents whose performance had never been objectively analyzed. Inside sales personnel supported the field sales effort. The company realized it needed to evaluate its sales and distribution network to determine what territories and markets were not being effectively served based on then-perceived market potential.
ACTIONKoch Group’s industrial marketing consultants conducted market research that encompassed profiling the existing customer base, identifying the best industries that the company serves, and identifying the concentrations of potential by industry and location. Our consultants analyzed their business, pinpointed geographic areas and market segments that offered the highest potential for sales, and interviewed all of their existing manufacturers' agents. Our consultants evaluated the market potential and determined that the automotive market was underserved by their existing sales agency whose sales had declined 300% over a number of years. We identified, screened, qualified, and scheduled 14 sales agencies for 2 days of in-territory interviews to replace the poorly performing agency. We also determined the proper commission to be paid in that market for their product. We prepared the company for the interview process by developing interview handouts, scripting a presentation, and rehearsing the presentation. Finally, our consultants participated in the agency interviews, managing the 2-day schedule, and provided a written comparison of the qualifications of all the agents interviewed to our client.
RESULTSWe assisted the company in the selection of a high quality sales agent and helped them prepare a contract to formalize the agreement to develop identified potential in the automotive market. Existing sales had gone to nearly nothing due to the expiration of automobile models for which they had contracts. Within one year the new agency had generated over $750,000 in all new business with an expectation to be over $1 million in 18 months. Additionally, some of the new automotive business the agents have developed is for in-mold decorating technology. This technology saves the end-user significant labor costs, improves label/decal durability, carries a higher margin than traditional products, and is difficult for most other suppliers to effectively compete against.Next: Electronics >> If you would like more information about our industrial marketing services for manufacturers and industrial service providers, please use our contact form or email us at info@kochgroup.com.
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