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Trailer manufacturingIndustrial 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 sales distribution channel analysis and new channel participant identification, screening, and contracting. This client manufactures and sells custom and standard horse and livestock trailers. Koch Group consultants interviewed the company's dealers and distributors, targeted new potential distributors and traveled with company sales personnel to set up new distribution. Sales increased over 40% in one year and maxed-out existing plant capacity. SITUATIONLocation: Southwestern United States Company was operating in reactive mode and all sales activities were a result of inquiries, or trade show activity. Market research had not been conducted. Unknown factors included trends in the industry, the total size of the market, potential distribution locations, competitor pricing, trailer dealer requirements, and promotional requirements required by market participants. Sales had been flat for the previous 3 years and the company was losing an average of $125,000 per year.
ACTIONKoch Group consultants conducted desk research to determine the market size, its distinct segments, and major distribution locations. We contacted existing dealers and interviewed them to obtain their input and evaluate the client's ability to effectively support the product. We conducted field research to obtain competitor pricing and dealer input. Then, we targeted, screened, scheduled, and physically visited nearly 40 potential dealers to determine their suitability for, and interest in, becoming a dealer for our client. Finally, we prepared a written plan for management to follow covering needed promotional activities, pricing levels, market potential, needed profit margins, anticipated manpower requirements, and required product offerings.
RESULTSThe company increased its sales by $4,000,000 and profits by 15% within 2 years. They developed new dealers in 7 locations. The client now understands the size of the market, sales potential, and what resources are required to effectively support its dealers and continue sales and profitability growth. Eventually, the company maximized its output in its plant and is now considering building its second plant to keep up with newly created demand. Next: Automotive Stamping >> If you would like more information about our industrial marketing services for manufacturers and industrial service providers, please use our contact form or email us at info@kochgroup.com.
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