 |
 |
 |
 |
|
|
 |
 |
 |
|
 |
Non-ferrous investment castingIndustrial 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. For this Midwest-based, non-ferrous investment caster, Koch Group consultants conducted significant market research to determine commercial uses of the client's technology nearly exclusively used for military contract products. We assisted in setting up a new network of manufacturers' agents around the country and doubled their sales while converting from defense sales to commercial sales. SITUATIONLocation: Minnesota The client was a second tier supplier to the aerospace and defense industries. These two markets accounted for approximately 90% of annual sales. Defense cutbacks in the early 1990s severely reduced the company's business base. They did not utilize any proactive marketing activities. All sales were direct and the result of government contract RFP releases to a limited pool of qualified vendors.
ACTIONKoch Group performed market research and identified and qualified new commercial applications for existing company processes and services. Our field and desk market research activities identified high potential, non-defense, markets for the company's casting services. We developed a sales action plan to pursue client-selected identified and qualified markets. We established new distribution channels, using manufacturers' agents, in high-potential territories. We trained company ownership and management in the processes used to identify, recruit, and successfully motivate, high quality manufacturers' agents.
RESULTSSales increased from $2,200,000 to $5,000,000, a 220% increase, within a 24-month period. During this same period, government generated business was replaced with commercial business. Government defense work was reduced from 90% to 10% of company sales as the planned diversified commercial work took its place. The client established new distribution channels in 5 targeted key territories where there had been no previous commercial sales and began generating totally incremental new business. The client totally converted from its reliance on the failing defense market to commercial markets that were more stable, diversified, and profitable. The company management completely changed their marketing mentality from totally reactive to aggressively proactive. Next: Printed Circuit Boards 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.
Services | Benefits
| Projects | Success
Stories | Presentations | FAQs
|
 |
|
||||||||||||||||||||||
