National Brand Success through Highly Targeted Marketing
Commend was entering the US market with no brand recognition, product acceptance or market share. Several competitors were well entrenched, active in several markets, and had established organizations.
Established a plan to capture the security communication needs of Fortune 100 companies and capitalize on their visibility to gain product acceptance. Utilized highly selective dealers/VARs that were located in key geographic areas with at least 50% of their business being negotiated from existing Fortune 100 clients.
Captured major systems for more than 15 Fortune 100 companies, which began to multiply trifold within those companies as new locations were networked into the initial main system. This also provided committed dealers who saw continuing sales possibilities, and name awareness through articles in industry periodicals.
Sharpening Sales Focus Boosts Sales & Cost Savings
Sales costs were excessive at 26% of sales, and sales staff efforts resembled a “shotgun approach” resulting in low productivity. There was great resistance to change in both the company and the industry because things had always been done the same way.
Revamped sales compensation plans to more directly reflect company goals. Established firm goals for all sales staff and constantly measured against these goals. Narrowed target niches to those with greatest current success and future potential.
Sales increased 50% in three years, with a decrease in sales costs, resulting sales cost at 14% of sales.
Skyrocketing Market Share through International Partnership
Domestic sales potential was decreasing rapidly and AMF Geospace’s international market share in the major French market was at 10%. A Belgian competitor was favored and had a 90% market share.
Identified a very limited list of sensor products that the French used. Established a co-production agreement with a company in France, such that the final assembly occurred there utilizing AMF’s technology, though most of the parts came from the US.
Result was that the product was considered made in France, which was something very much favored by the French. AMF’s market share quickly amplified to 90%.
Enhanced Market Share through Competitor Analysis
Lightly funded US startup of an Austrian parent company had no personnel or brand awareness, and entrenched competition in the market.
Determined the strengths and weaknesses of main competitors and targeted areas with the least competition and greatest chance of success. Picked selective geographical markets where competitors were less successful. Developed the hidden sales market of negotiated business through Fortune 100 companies and OEM connections to generate sales to which competitors had no access.
Grew from zero to 15% market share in just over three years with a major concentration in the Western US and South America, OEM partners and more than 15 Fortune 100 companies.
Strategic Market Planning Targets Doubled Sales Growth
Requested by $80M Norwegian parent company to assist in overall company strategic planning by representing the market side of all countries. The different languages and lack of knowledge of the individual markets presented a potential problem
Conducted strategic onsite analyses of the top six markets representing more than 50% of current annual sales and 75% of anticipated future sales. Developed a strategic plan in conjunction with the Norwegian Materials, Engineering, Financial and Corporate managers.
Comprehensive plan was developed that included new products, new market niches, new geographical market penetration and a potential merger and acquisition plan. Together it targeted 100% sales growth in four years. Plan was accepted by the Board and presented to the financial market and employees worldwide.
Expansion Strategy Triples Company Sales
Company was a small regional player with less than $5M sales. Only one of four locations was performing strongly. Parent company identified desire to grow through acquisitions. Difficulty was to identify correct acquisition plan and target companies to complement existing operations in an additive manner.
Thoroughly analyzed all existing operations, identifying strengths and weaknesses. Performed an intensive market review of all competitors (security companies) in the region.
The company grew by 200% to $15M through both acquisitive and organic growth. $4M was realized through acquisitions and $6M+ through internal growth as a result of complementary and additive actions.
Critical Alliances Penetrate Competitive New Markets
No distribution channels existed within the US for the company, and a limited budget was provided to hire a small staff to develop and support new business development efforts. Well-entrenched competitors were already utilizing most of the normal distribution channel (dealers/VARs).
Identified key markets and players, where company’s communication solutions could augment their main products and become a dedicated part of their solution. Successfully addressed several markets—such as automated parking revenue systems, transportation safety systems, and industrial communication systems—and developed five OEM relationships wherein OEMs utilized company equipment each time they sold their equipment, providing a continuous revenue basis.
Obtained 20% market share in offshore communications and a 60% in parking automation systems communication. The results continue to grow as the individual companies grow.
Strategic Partnership Elevates Market Share
Rapidly increasing demand for products was putting severe constraints on the supply of copper wire due to limited capacity in that area. Wire manufacturing was controlled by vendors who took orders on a first-come, first-served basis and limited supply to any company based on their own capacity limitations.
As VP of Operations for Mark Products, Inc., met with several manufacturers and determined their capacity limitations and any expansion plans anticipated. Selected one vendor and arranged to purchase new wire-cabling equipment that they would install in their facility to produce wire only for Mark as the primary customer at a reduced price. After five years, equipment ownership would transfer to the manufacturer.
A continuous supply of wire was made available, allowing a very rapid buildup of demand (300%) to be met with no interruptions while competitors could not meet demand. This provided Mark with a 20% increase in market share in cable product line.
Operational Turnaround Revitalizes Failing Division
Due to strategic success heading US operations, recruited by parent company in Norway to assist foundering UK division, which had no one at the helm. Situation was complicated by comprehensive differences between US and UK operations, and employees’ view of new leader as an outsider.
Spent 7-10 days a month in London for about 4-5 months. Collaborated with all employees and assessed their strengths and weaknesses. Conducted a strategic analysis of the UK market, redirected sales and marketing efforts and revamped compensation programs.
Actions resulted in a turnaround in less than six months with a concentration on applications in just three market niches. Subsequently assisted in identification and selection of a new Managing Director that had experience in two of these market niches.
Adroit Financial Management Reverses Profit Loss
Company was in a 7.5% profit loss position, impacted by lack of financial reporting/controls and related knowledge for this multi-location operation.
Instituted improved controls and financial analysis that clearly indicated reorganization of three locations. Capitalized on market niche successes to concentrate sales efforts in complementary areas. Trained management staff on the use of financial control systems.
Loss position was reversed to a 9% profit in 18 months, which provided an excellent base for future growth.
Strategic Marketing Reaps Tradeshow Buzz & Sales Leads
Major security tradeshow was scheduled, where all competitors would display. Attendees would be 18,000 end users, dealers/VARs, and engineering firms. Previous year’s traffic was minimal: booth size was just 10' x 10', and with no brand awareness there was no established pull to the company’s booth.
Established a database of 3,300 security directors/executives for end users and consultants. Coined the acronym "IOIP" (Intercom over IP), representing company’s latest technology and something that no other competitor had. Placed two ads in industry periodicals, distributed two mailings to database, and developed innovating signage for booth and attending staff.
The result was an "IOIP" buzz. Booth traffic boosted 400% and firm leads even higher. Gained industry recognition from free press at the show and afterwards. Earned recognition corporate-wide, such that the phrase was copyrighted in Europe (by Austrian HQ). Three of four competitors tried to release IP products in the next year.
Adept Change Management Transforms Profitability
Company had two consecutive years at 5% loss position: entrenched way of doing things for the past 10 years had left the operation stuck in a rut with little guidance or motivation to change.
Upon assuming new leadership position in the organization, improved operational efficiency through reorganization, inventory managment, changes to the operating procedures, improved financial controls and communication initiative to distribute information about changes. Expanded company recognition through regular PR efforts of successes and a major change to the sales compensation plan.
Operational costs dropped more than 10% and sales increased 30% in first year and 22% in second year. Turnaround realized within one year with a 4% profit, leading to 8% second-year profit.
Restructuring Systems Bolsters Productivity
Low technical productivity resulted from lack of systems for labor costing, inventory management, or scheduling. Company’s plan was to install systems as equipment arrived, resulting in multiple trips with no record of associated non-material costs.
Installed job-costing system that included labor costs. Improved inventory management processes that included purchasing, and installed a labor scheduling system based on standard installation times.
Technical productivity increased by 35% in two years and continued to climb, increasing on-time installations and customer satisfaction.
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