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Printed circuit boardsIndustrial marketing success storyKoch Group is a 30+-year old industrial marketing consulting firm providing a broad gamut of industrial marketing assistance activities to small and mid-sized manufacturers. Assistance activities include market research, strategic and tactical planning, plan implementation, target marketing, new market identification and qualification, existing market penetration, direct selling assistance, and trade show management. We also specialize in manufacturers' agent identification, screening and contracting. This west coast client manufactured machinery used in the circuit board industry. US sales had ceased and client needed immediate sales. Koch Group consultants interviewed over 100 market participants, organized an on-site "trade show" showcasing new technology, developed a comprehensive action plan to jump start domestic sales, and helped hire a new sales manager to set up a network of manufacturers' agents and implement the sales plan. In 18 months, domestic sales increased from $0 to over $4,000,000. SITUATIONLocation: West Coast The company had been a very successful and well-known OEM equipment maker with sales of over $20 million. The client's installed domestic base of equipment totaled 305 machines. A series of missteps by a new owner without industry background reduced the company to the role of a parts and service supplier. When we began the assignment, no new machines had been sold to U.S. OEMs in 26 months. The workforce had been reduced to 30, down from nearly 100 two years earlier. Machines had an average selling price of between $450,000-$550,000. All parts and service sales activities were a result of telephone inquiries from owners of the installed base of equipment. Four inside sales people and two national sales reps handled customer contact, including inquiries. No structured account development or qualification activities been conducted by the inside sales team. Unknown factors included current market perception of the company and its products, the purchasing plans of past customers, the promotional activities required to gain the market's awareness of the company, its solid engineering capabilities, and its products.
ACTIONKoch Group consultants analyzed our client's past customer base and determined the SIC codes served, typical size of company, sales, and location. We developed a list of 842 national accounts actively purchasing, or capable of purchasing their type of machinery. We interviewed 100 randomly selected target accounts by telephone to determine their anticipated capital equipment purchases over the next 24 months, probable purchase vendor, perception of the major domestic manufacturers, product lines and technology, needed equipment features, and purchase schedule. We personally visited with the sales managers or owners of their major US competitors and toured their plants. We interviewed, by phone, their major foreign competitors and discussed their products, new product introductions, new technology plans, major promotional activities and the reasons for them, plus their view of the market and its trends. Our consultants analyzed the data obtained and were able to conclude the existing customer based believed the company was now only involved in parts and service, and many would soon be buying new equipment, but from competitors. We evaluated the existing sales staff and determined that a sales manager was needed to coordinate the sales function. We then assisted in the recruiting, screening, and hiring of a qualified sales manager. We developed and implemented an action plan to focus on obtaining opportunities for new machine sales from the established customer base via direct contact and personal invitation open-house activities designed to correspond with major national trade shows located near the plant. The client showcased their new technology, which matched that of any manufacturer in the world, at these open houses. Finally, we developed a script to choreograph the minute by minute activities to take place during a personal visit and the exact wording of all delivered sales pitches.
RESULTSThe client sold eight (8) new machines, valued at ~$4,000,000, within 18 months of accepting this assignment. Sales were primarily the result of marketing to, and following up with past domestic only customers and the establishment of a network of manufacturers' agents to make the required sales contacts. The client now has the ability to conduct proactive marketing activities and support ongoing sales of new equipment, is financially stable, and once again recognized as a key market player. Next: Process Heat Components Manufacturer >> 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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