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Labels, decals, and identification productsIndustrial 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. 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. A producer of industrial labels and decals approached us to provide new customer opportunities. SITUATIONLocation: Midwest This high quality, high volume, producer of screen printed and flexographc printed industrial decals and labels had been informed that they would be losing all the business at their second largest account due to a change in the products the customer sold. The loss of business was through no fault of the vendor, just changes in the customer's business. Our client desperately needed a new customer to fill the void of losing their number 2 customer. The client sells through a national network of manufacturers’ reps, but no large opportunity appeared to be able to provide the needed replacement sales volume. Our client expressed their deep concern that this loss of business would be the difference in making them not profitable in the coming year.
ACTIONKoch Group consultants had previously developed a relationship with one of the largest industrial rental equipment organizations in the U.S. due to working for a client in the construction industry. Based on that involvement, we were aware they made large purchases on industrial decals and labels. We asked our client to evaluate the labels and decals the industrial rental equipment organization showed on their web site to see if they could provide them. When our client indicated they could manufacture them, we contacted the rental equipment organization’s national purchasing personnel to inquire about getting another vendor qualified to provide the needed labeling products. The rental equipment organization purchasing people indicated they were dissatisfied with their current vendor and were interested in evaluating new, high quality, potential vendors. We scheduled a trip with our client to visit the industrial rental equipment organization’s purchasing personnel and prepared a PowerPoint presentation for them to use during the meeting. We accompanied our client on the trip and orchestrated the meeting. The equipment rental organization indicated during the meeting they needed many of their labels to be fade resistant in any outdoor working environment encountered in the U.S. for five years. We also identified three other major criteria for vendor selection by asking probing open-ended questions to the purchasing personnel. After the visit, we assisted our client to prepare a bid for a 3-year contract worth $1.5 million for fade-resistant screen printed labels and decals. We prepared the final bid submission documents and later a contract for both parties’ use. We helped our client ensure their bid response addressed the major selection criteria. We also assisted our client by researching certain Internet and P3P compliance issues required by the buyers.
RESULTSBased on the submitted bid, which saved the industrial equipment rental organization 5% across the board on their industrial label costs, our client was awarded a 3-year contract valued at $500,000 - $1,500,000 per year. Existing inventory was shipped to our client and they began supplying new industrial labels and decals to their customer within 75 days of our initial meeting with the industrial equipment rental organization. Next: Laser Cutting >> If you would like more information about our industrial marketing services for manufacturers, please use our contact form or email us at info@kochgroup.com.
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