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Electronics and mechanical assembliesIndustrial 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. This small mechanical test fixture manufacturer had over 90% of his business in one large electronics company. Koch Group consultants performed market research and then wrote a sales plan to diversify their business base, recruited a manufacturers' agent in their primary territory and helped script and produce a short promotional video. Within two years sales had grown 384% and they had developed 5-6 major new national customers in different industries, significantly reducing their dependence on one large customer operating in one competitive industry, minimizing their business risk. SITUATIONLocation: Midwest The client had 3 customers with one dominating sales, accounting for ~85% of annual sales. No organized sales activities were being conducted. The company reacted primarily to the needs of it largest customer. Sales were the responsibility of the owner who was also the chief engineer. The owner believed the company was financially exposed as a result of one company dominating its business. The company had no plan to develop new business and no sales staff to pursue new opportunities.
ACTIONKoch Group consultants initially developed a profile of potential ideal customers by business type, size, and SIC code. This profile was used to develop a list of 100 target customers based on specific criteria. We developed and tested a short telephone qualifying survey and then used it to qualify 35 regional accounts. We analyzed the obtained qualifying call data and used the information as the basis for a short action plan. We subsequently identified nearly 2000 manufacturers' agents in a major MANA territory, recruited them, and eventually met and interviewed 7 manufacturers' agents. We then assisted the client to contract with an agency to call on identified and qualified potential accounts.
RESULTSThe selected agent followed the developed action plan and quickly sold 4 major OEM target accounts, Cherry Electric, Allen Bradley, Borg-Warner and Siemens. Additionally, Borg-Warner selected our client as the official test equipment prototype developer for Borg-Warner facilities nationwide. The client increased sales to $9.2 million, over a 2-year period, and the owner sold the company to a group of investors. The ex-owner now spends time big game fishing! Next: Ferrous Foundry >> 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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