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Defense industry conversionIndustrial marketing servicesKoch Group, Inc. is an industrial marketing consulting firm that was founded in 1967. During the decades of our assistance to small and mid-sized manufacturers and industrial service providers, the U.S. economic situation and defense budgets have changed radically – back and forth. During the early 1990s it made good business sense to transfer from servicing the government and military contracts since this business was in a strong turndown at that time. During that timeframe, we assisted a number of manufacturing clients shift the bulk of their sales from the military to the private sector using the same processes developed to service military projects. Since the tragedy of 9/11/2001, the military has geared up its purchases again and it currently makes good sense for many manufactures to target and pursue military business if a company’s processes fit well with specific needs. Whether shifting to servicing the defense market or shifting from defense to commercial and industrial segments, the process we employ to assist our clients is very similar. First, it is critical to analyze and understand the production processes, not necessarily products or components offered by a particular manufacturer. Once the manufacturing processes are evaluated, we determine with company management what types of markets they could potentially serve. If the company is moving toward the military rather than away, we determine what cage codes define the processes they are competent in. Either way, we help the manufacturer determine what market segments in the industrial sector or what cage code activity in the military side they are capable of servicing. Once that activity is completed, we proactively pursue targeted opportunities. If we are moving from military to industrial, Koch Group consultants convert market segments able to be served into Standard Industrial Classification (SIC) codes or North American Industrial Classification System (NAICS) codes, and then develop target companies based on agreed-upon criteria such as business size, location, credit rating, or other important factors. Once target companies are developed, we qualify a selection of them for key questions and make a determination whether to penetrate that market segment or not. If a client decides to attack or penetrate a market segment, we work to them to plan their marketing activities and help them secure whatever distribution is required to service that segment. Often, that includes helping them develop an industrial distributor network or a network of manufacturers’ agents or manufacturers’ reps. The process takes some time, so it is critical to begin the movement to or from defense quickly, and then put together the necessary marketing tools and activities required to move forward and sell successfully. If you would like more information about the industrial marketing services we offer to manufacturers. Please use our contact form, email us at info@kochgroup.com, or call us at 630-941-1100.
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