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Precision metal stamper - market inactionIndustrial marketing mistake storyKoch Group is a 40+ year old industrial marketing consulting firm providing a broad gamut of industrial marketing assistance activities including 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. And sometimes, our clients don't take our advice! Koch Group consultants performed a sales analysis, interviewed customers, developed company benefits, evaluated their existing web site and brochure, targeted accounts, and other industrial marketing activities. Ownership has resisted efforts to move this company to attractive alternate market segments, while sales in long-term old line markets are dramatically dropping. SITUATIONLocation: Midwest The client is a family business that has been in operation over 50 years and is now run by the second generation. The company designs tooling, stamps and welds components, and provides a variety of unique quality assurance and assembly operations. Primary customers are linked directly to automotive and heavy truck manufacturing. Management recognized the need to diversify their business, as focusing their sales in on a single industry would be problematic if this industry were to suffer a setback.
ACTIONWe began discussions with client and agreed that they were at risk with their current market focus. After multiple discussions, meetings, and exchanges of information a potential project outline was agreed upon. The outline became the basis for developing a formal proposal to conduct the market research and subsequent planning and implementation activities required to diversify the company’s business base. We submitted the proposal to the client for review and approval and reserved time in our schedule to begin conducting the required work in the next 4-6 weeks. The client accepted our proposal and said they would be ready to start work shortly. For reasons we do not fully understand, the client delayed taking action on starting the project for approximately 6 months Work conducted for this client to date has focused on market research activities that have encompassed defining the company’s capabilities, services, and benefits, evaluating their existing web sites’ content and performance, evaluating their existing promotional brochure, interviewing their major customers, developing a universe of market potential, prioritizing states and markets to pursue, and developing target accounts for pursuit and documenting the research formal market research report.
NEGATIVE RESULTSBy the time the needed market research had been completed a major economic slowdown had severely effected the company’s primary customers and major portions of the U.S. manufacturing base. As a direct result of the rapid downturn in economic conditions competitors and other metal stampers were also put in the position of scrambling to diversify their business base and secure replacement work for lost business. The window of opportunity that the client had enjoyed to diversify their core business before a contraction occurred was missed. The client is now in the position of having to compete with direct competitors and other stampers that are also aggressively pursuing the same shrinking base of potential work. Check out our complete list of stories that contain industrial marketing mistakes your company does not want to make! 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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