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Specialty corrugatorIndustrial 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 and industrial service providers. Alternate market development is one of our specialties. Koch Group consultants developed a list of alternate market segments to target, generated potential target companies using selected criteria, performed telephone and in-person qualifying interviews, and recommended targets for pursuit. This client has realized a $3+ million increase in sales at a profit margin nearly double their normal margin. SITUATIONLocation: Midwest A Koch Group client was interested in diversifying their business base. The existing base of business consisted primarily of building products distributors and was cyclical in nature. Koch Group consultants held a brainstorming session with the client to determine which other major markets could likely be served with their unique production capabilities. We identified major market segments including:
ACTIONKoch Group developed target company selection criteria for Original Equipment Manufacturers (OEMs) participating in each of these market segments. We then conducted market research to identify these OEMs and developed databases containing appropriate selection and contact profile information including the number of years in business, company annual sales, number of employees, number of manufacturing locations, and other pertinent contact information. Koch Group consultants contacted and visited a selection of identified manufacturers in each of these market segments. We interviewed them to determine if they used corrugated metal components in their equipment, the specific applications for these components, their materials requirements, and their estimated annual usage of custom corrugated metal products in dollars. Koch Group analyzed the survey information obtained and reported our findings, conclusions, and recommendations to the client.
RESULTSThe client elected to pursue the trailer business and quickly captured the industry leader as a customer along with several other less major manufacturers. In a short period of time, our client has sold $3+ million to this market segment as a result of the research and target marketing activities. The profit margin to this new market segment has a profit margin that is double the client’s normal margin.Next: Metal Fabricating >> 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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