Background

The firm is a manufacturer of small wooden kazoos, tops, and whistles. At time of certification, the firm had 12 employees and annual sales of approximately $638 thousand.

As a producer of all wood kazoos, tops, and whistles, the firm was import impacted by penetration of domestic markets by overseas manufacturers, and the inroads of alternative fabricated materials used to produce these products.

The firm had begun addressing the materials issue by experimenting with various types of fabricated materials, while maintaining an active presence in the market by attending trade shows and investigating niche markets that still sell only all wood toys.

Assistance

Diversification into new markets that would capitalize on the strengths of the firm's current products was the firm's primary strategic objective. The action necessary to achieve this objective encompassed a planned yet action-packed marketing effort that targeted new business from current and potential customers.

To succeed in new markets, three critical functions required attention. The firm, with TAAC assistance, needed to develop a plan to build an organized marketing function and evaluate opportunities for new business. This project took into consideration the firm's current activities in marketing and then developed the structure and tools needed for obtaining new business. The project cost approximately $20,000.

A second project addressed management's need to operate and understand the techniques and procedural aspects of its automated equipment. This project would address how to design and operate the automated equipment to benefit from the machine's vast capabilities. This project would cost $10,000.

A third project would assess the firm's needs and capabilities as related to its information system requirements. Based on the analysis, the consultant evaluated the current implementation of the "Prosper" package. Recommendations were made, along with a plan of action to integrate the selected solution. The project cost was estimated at $25,000.

Results

With two of the three projects completed, the firm was experiencing a lot of new interest by customers. Existing customers are pleased with the new aggressive stance to sales and many new, prospective customers are just now finding out about the firm.

Background

The firm is a manufacturer of wooden furniture including TV tray tables, gourmet kitchen carts and islands, and Adirondack-style outdoor furniture. At certification the firm had 77 employees and approximately $5.2 million in sales.

By the mid-'90s sales topped out at $9 million and the product line fully evolved to meet the needs of customers in the furniture industry, which eased the firm’s loss of customers in the giftware industry. It was during that time the firm also began to expand its product line to include larger pieces of furniture manufactured from many more types of solid woods.

By 1999, as business began to slow, the owners believed it was just another bubble in the economy that before too long would abate. Unfortunately, because of increased foreign competition and a depressed economy the firm’s gross margin dropped below 10 percent while the cost of doing business steadily increased.

With the TAAC’s help, management identified an area that if improved would ensure the long-term viability of the business.

Assistance

The very first order of business was to replace lost sales. Without increased sales, the firm's long-term prospects were dim. After analyzing the strengths of the business, it was determined the firm needed a strategic marketing/sales plan to address both immediate and longer-term needs. The plan would define the firm’s strengths, weakness, opportunities, and threats and had to include a formulation for controlled growth, predicated on specific business calculations and formal marketing strategies, market trends, and customer base. Once these elements were properly addressed, long-term goals and objectives could be developed for the firm.

Results

The project is considered a big success by the firm. Since completion of the project sales experienced a 50 percent increase and employment increased 30 percent. One immediate benefit of this project was the firm's products being featured in two extremely popular shop-at-home catalogs (LL Bean and Lands-End).

During the course of the strategic marketing project management learned that as the firm becomes a stronger competitor, management will be in need of a few high-level professionals to assist the firm in reaching the next sales plateau. Three such positions are VP of Manufacturing, VP of Marketing, and Controller. Filling these key positions will be instrumental in moving the firm to the $10 million sales level.

Background

The firm is a manufacturer of upholstered and wooden office furniture. At certification, the firm had 30 employees and annual sales of approximately than $2 million.

A highly competitive market has battered the firm for years.  Canada and Mexico have been flooding the U.S. market with goods produced from inferior material and cheaper labor. Russia has entered the picture with its vast supply of cheap raw material that can offset the cost of transportation to the United States. In addition, Japan has been exporting its imitation wood products at reduced rates making it difficult for many U.S. firms to remain competitive. During the mid 90’s, the percentage of imported furniture continued to rise, on average 14 percent per year, making it very difficult for U.S. producers to keep abreast of the market.

Moreover, the firm also competes in a domestic market that has for years experienced the trend of mergers and acquisitions resulting in a glut of used office furniture in the marketplace.

Assistance

The recovery strategy highlighted two areas deemed critical for the continued operation of the business, management information systems (MIS) and marketing. On the MIS issue, the TAAC discovered that accounting, job costing, procedures, methods, and standards were not being captured in a manner that provided management with timely or useful information. A plan was developed to design a new information system, design the necessary hardware, and spec the necessary software. Once management purchased these components, technical assistance was provided to integrate the information system and customize the software to the business. It was estimated the system could be developed for $30,000.

Marketing is important for both the short-and long-term. It was discovered the firm lacked a formal, structured, comprehensive marketing plan. The development of a marketing plan was viewed as the foundation from which new business development could take place. A marketing plan was developed for $30,000.

Results

The recovery strategy highlighted two areas deemed critical for the continued operation of the business, management information systems (MIS) and marketing. On the MIS issue, the TAAC discovered that accounting, job costing, procedures, methods, and standards were not being captured in a manner that provided management with timely or useful information. A plan was developed to design a new information system, design the necessary hardware, and spec the necessary software. Once management purchased these components, technical assistance was provided to integrate the information system and customize the software to the business. It was estimated the system could be developed for $30,000.

Marketing is important for both the short-and long-term. It was discovered the firm lacked a formal, structured, comprehensive marketing plan. The development of a marketing plan was viewed as the foundation from which new business development could take place. A marketing plan was developed for $30,000.

Background

The firm is a manufacturer of textured metal products. At certification the firm had 42 employees and annual sales of approximately $7.8 million.

This niche producer of textured metal products got its first big boost when the Unisphere, constructed for the 1964 New York World’s Fair, had the  firm’s textured metal products representing each continent’s land mass.

As the demand for textured metals increased, the firm kept pace by accelerating its growth both in facilities and jobs, and as the business grew so did competition, which spurred the firm to focus on niche markets. That focus continued the firm’s growth and expansion until the late '90s when the market started to soften. By that time, many more foreign competitors were entering the textured metals market creating a significant increase in imports and resulting in a significant decline in margins for the firm.
Niche marketing has created a new need for the firm for which management realized they do not have the internal expertise. So they sought help from Trade Adjustment Assistance Center (TAAC).

A review of the complete operations of the firm revealed that although the market for the firm’s capabilities was growing and manufacturing was adequate for the output of the business, sales representation was weak. Other problems brought to light were the firm’s limited marketing expertise and the lack of internal systems.

Assistance

The recovery strategy embraced by management would provide the firm with specific strategic market/business planning, focused on market identity, tools development, and sales growth. To support the anticipated increase in sales, manufacturing had to improve and expand. The recovery strategy also emphasized the need for the firm to engage in an evaluation and implementation of a complete integrated management information system (MIS) that would support the growth of the organization.

The first project addressed the specific systems’ requirements, with the outcome of a precise system recommended and implemented. This system has streamlined the workflow, providing everyone with accurate and timely information such as order status, customer profiles, and a paperless credit procedure.

The strategy for short- and long-term viability articulated the need for a formal, structured, comprehensive marketing plan that would include a mission statement, evaluation of current market focus, characteristics of potential new customers, and short- and long-range sales goals and alternative strategies. The marketing plan would also include information from past and present customers and a random sample of non-customers, as well as focus on product development.

Results

The owner stated both projects are a success. The integrated MIS provides timely and accurate financial reports. Both technical and sales information is used to support the new business development efforts. Now accurate information is immediately accessible.

The owner and his management team have also gained a number of benefits from the extremely successful sales and marketing project. First and foremost, the project provided a sound and precise road map for the owner and his management team to follow. The plan has given the team confidence and control that had never before been part of the decision making process. Customer feedback was enlightening and transformational for the firm. Pricing, an area thought to be well within industry guidelines, appeared to be a major issue with the firm's present and past customers. Armed with this information, a new emphasis was placed on pricing and the different components of this aspect of business. The project additionally established a key account marketing strategy including customer communications--sales and marketing tools, including an updated web site and the creation of a company video and a new sales structure to support this approach.

Early results have shown improved backlog to over a month compared to just one week on shipping an average 900,000 tons/month, an increase of 20 percent from one year ago. Moreover, gross margin has improved more than 3 percent.

Background

The firm is a manufacturer of sequins and sequin yard goods. At certification, the firm had 362 employees and annual sales of approximately $19 million.

The U.S. apparel industry faces intense competition from manufacturers in China and other Far East countries, which have historically been able to use an abundance of cheap labor to out-produce and capture market share from any competition.

To increase the firm’s competitiveness, management decided that change was necessary. Simply stated—their goal was to be known as a world-class producer. So, this family-owned company embarked on a path that completely changed the way it did business.

Assistance

The primary avenues to achieve this goal included the complete restructuring of management and management philosophies, implementation of current, state-of-the-art manufacturing techniques, and completion of a formal marketing strategy.

To meet the challenge of the marketplace, the firm, on its own, began a complete total quality management project, implemented just-in-time manufacturing in various areas of the plant, and addressed employee training throughout the plant. To continue the momentum toward recovery, Trade Adjustment Assistance was used to provide strategic marketing direction for the firm.

Results

A strategic marketing plan, that cost $40,000 to complete, provided the firm with an evaluation of its current and future potential in the accessories and fabric markets and a profile of successful suppliers to the market, as well as an assessment of the firm’s target markets, sales representation, realistic short and long-term goals and objectives, an assessment of current products compared to the competition, and identification of appropriate marketing tools.

The first year after completion and implementation of the strategic marketing plan the firm realized an increase in sales of nearly $3 million

Background

The firm is a manufacturer of precision mechanical products used in the computer, automotive, imaging, and office equipment industries. At certification, the firm had 92 employees and annual sales of approximately $8.9 million.

The firm is a "world class" parts supplier that designs and builds tooling for major high technology OEM corporations. The firm's primary manufacturing strength is its engineering and precision tool making ability in conjunction with exceptional quality levels, which is also its primary marketing advantage. The firm has Computer-Aided Design and Computer Aided Manufacturing capabilities (CAD/CAM) and recently instituted statistical process control (SPC). (SPC gives the operator the responsibility to measure and certify quality.)

Although the firm has all the attributes to remain successful in the tooling and machining industry, it was experiencing increased competition by foreign suppliers. For example, the firm submitted a proposal to provide gage tolerance components to be used in OEM copy machines. The contract, valued at over $4 million, was awarded to an offshore supplier. As both domestic and foreign competition increase, the firm must have the management team and appropriate systems in place to effectively compete.

Assistance

To strengthen its short-term business position, the firm intended to continue the successful implementation of a recently completed marketing plan that identified the medical products industry as a potential market. This required the development of a new corporate sales brochure targeted to new customers in the medical products industry, at a cost of $30,000. The firm's long-term strategy was for expansion. The foundation for this long-term strategy was the successful implementation of the marketing plan. The corporate brochure development project would further assist the firm in its long-term expansion strategy by expanding its customer base.

Results

Six additional direct labor positions were created and filled, contributing over $150,000 to the local economy. Sales in the medical products sector now account for 12 percent of sales, making the firm less reliant on one sector of the market. The firm has recorded a profit each month and expected to earn approximately $300,000 the first year after implementation of the recovery strategy. The firm's bank, which had been concerned about the lack of direction and net losses, now views the firm as a viable, financially healthy concern.

Background

This business began when a group of engineers, who would meet regularly to swap invention ideas, decided for protective measures to incorporate. On September 13, 1978 the group incorporated in New York State. However,
it wasn’t until 1982 that the firm hired its first full-time employees, as that was the year the four founders secured a significant amount of venture capital. It was also the year the firm developed and began marketing a microprocessor-based motion controller for controlling servomotors in automation applications for general purpose. The first products offered were single-axis motion controllers based on Intel microprocessors.

For the next 15 years, these Rochester-based engineers introduced new products as often as they could with very little competition. But by 1996, foreign competitors had invaded the market in grand fashion.

Over the next few years competitive pressures continued to mount, making every sale harder to win. European presence strengthened, and rapid advancement of technology was becoming more than the firm could handle. Another rapidly advancing development that is still powerful today, is one manufacturer being the prime producer and integrator of a project.

Management knew the firm must maintain a presence in the industry with product development a key priority, but they didn’t have the expertise to handle all of the challenges required to grow the business.

Assistance

The TAAC performed a diagnostic of the firm’s operations, which concluded the firm must develop ways to improve externally in order to compete more effectively.

The recovery strategy focused on the firm's ability to market and sell its products in different parts of the World that are closed to the firm because of the specific standards required by these countries; specifically CE designation. This strategy was selected because many macro forecasters and industry experts projected little-to-no relief from the litany of factors that have decimated the firm’s current domestic markets. Consequently, the firm looked to penetrate selected foreign (mainly European) markets initially for the incremental revenue to offset domestic losses. And for the long-term the firm looked to expand total sales revenue as domestic markets recover.

The strategy called for the firm’s products to be labeled with the CE Mark. The CE designation tells millions of European consumers the manufacturer, no matter the location, has subjected the product to a variety of tests and the product meets stringent health, safety, and environmental regulations

Results

The firm has gained a number of things from this successfully completed project. First and foremost, all products being offered now meet the stringent electrical and mechanical code and have passed rigid testing of the units. Now, anywhere in the world the firm is selling its units, the customer will have the assurance that it has been thoroughly assembled and tested meeting the CE requirements signified by the attached CE Mark.
European markets, once closed, are now open to the firm to sell its products. The firm has begun attending a number of key European trade shows to aggressively start the selling process. The outcome from these shows has been tremendous.

Additionally, the firm is in serious negotiations with two very large European firms, and if selected by these firms the orders would amount to well over 5 million dollars spread over the next seven years. Employment has remained steady, but if either one of these projects comes through, management is forecasting a number of new openings, and anticipates they could add between 5 and 10 new employees.

This is only the beginning for significant in-roads to overseas markets. If the interest generated by the trade shows is any indication, the firm will experience an increase in sales and employment. Management is pleased with the results thus far and encouraged to see what the near future will bring.

Background

The firm was founded 115 years ago in Chicago, Illinois, when two brothers from Canada started the business in an eight-foot-square, unheated room located in the rear of a boarding house.

In the early years, one brother designed the tools while the other built the tools. Various devices and tools were perfected, mainly of and related to the bench lathe line. Even though a number of products were built and sold, it was the cataract line of bench lathes and attachments that was instrumental in making the firm what it is today.

A totally separate set of events that took place during the First World War would also shape the firm’s future. A small machining company located in Rochester, New York, started manufacturing collets and feed fingers. This company also was experiencing rapid growth and was soon seeking additional space. The search ended when a much larger shop was found and opened in Elmira, New York.

Around that same time, the firm was experiencing growing pains, which precipitated its relocation to Elmira, New York from Chicago in 1931, and on January 1, 1938, both firms merged and continued expanding by adding to both the facility and the family of products.

Management realizes that to remain competitive they needed to continually improve the firm’s presence in the rapidly growing and demanding industry the firm serves by way of new products and accompanying machine tools. Thus, they developed steps to strategically transform the firm into a stronger, more flexible global manufacturing company. Many of these steps have led to mergers and joint ventures with companies of complimenting products.

In the recent past, the firm has experienced declining sales each year, worldwide. Domestic sales are off 50 percent; European sales have declined close to 30 percent; and the Asian market is currently being fueled by China, whose national economic plan is to develop its own local machine tool manufacturers, making it more difficult to import machines if a similar machine is available from a local Chinese manufacturer. At certification the firm employed almost 1,200 and reported sales of $170 million.

Assistance

The TAAC performed a diagnostic of the firm’s operations, which concluded the firm must develop ways to improve in the areas of marketing/sales communications and new product development in order to compete more aggressively against its larger competitors.

The recovery strategy would address the firm's need for a structured, all-encompassing marketing communications program. This program would combine the firm’s entire product offering (which is now scattered), into one corporate identity; providing similar logos, product messages, and printed material. Moreover, it would align the firm’s core products with a customer base more appropriate for the equipment’s capability.

The second part of the strategy included new product development. The firm has been facing competitors who offer on-line user friendly machine software. Today’s customers are expecting more and getting more from their machines, and one way of accomplishing that is through easier yet more sophisticated software to run the machines at improved productivity.

Results

Both projects have been successful. The marketing communications project, the first to be addressed, refocused and organized the firm's scattered marketing efforts. This project assessed the equipment-machine market by researching the background of the industry and conducting a competitive audit with an understanding of the overall strategy of the firm’s desired direction. The outcome was a clear direction for the firm’s market position; a unique high-impact corporate identity that will communicate a clear value proposition to the selected target audience; plus, a well defined tool kit that will be instrumental in reaching the firm’s targeted audience.

The success of this project can be measured by the increase of $10 million dollars in sales inquiries shortly after the plan had been implemented.

Background

The firm is a manufacturer and marketer of table and dessert wines selling its products throughout the Northeast. Its heaviest concentration of sales was in the upstate New York region. Its market share began to erode and its sales began to plummet, however, as the volume of imported wines entering its traditional market areas increased.

The situation prompted the firm's management to consider reducing the winery's dependence on the upstate New York market, by expanding into other geographical markets, specifically the Southeast and/or the Midwest. TAAC personnel suggested, and the firm's management came to agree, that they had insufficient information on which to make such an assessment.

Assistance

Although the firm had available a wealth of information on the wine industry in general, it had limited statistical information on its own products and particular markets. The TAAC, therefore, recommended that a comprehensive analysis of the firm's products, current markets, potential markets, and consumer base be performed before any action was taken.

As a result, the firm commissioned a market research project to determine consumer attitudes, the firm's reputation, consumer consumption patterns, and the advertising and promotional needs in each of the firm's existing and potential markets.

Results

The market research project successfully identified those areas requiring significant improvements and isolated geographic regions appropriate for expansion attempts. Using the information gained from the project, the firm developed a long-range plan that is expected to improve its future sales volumes.

An unexpected course of action, one that would offer immediate benefits to the firm, was also suggested by research conducted during the project. It was discovered that a significant market existed among adults for non-alcoholic grape juice. Since most existing products of this type were aimed at children, the firm concluded that it could successfully market a grape juice product targeted at adults.

As a result of this decision, the firm committed a portion of its idled processing and bottling capacity to the production of grape juice and rehired 16 previously laid-off employees to help produce and introduce this new product. The successful introduction and marketing of the non-alcoholic juice product will make it a growth segment for the firm, providing even more employment opportunities in the future.

Background

The firm is a manufacturer of precision sheet metal components and assemblies. Major customers are large OEMs who supply products in communication equipment, office equipment, instrumentation and electronic equipment. Annual sales range from $1.1 to $1.3 million. The firm was certified, due in large part, to increased foreign competition mainly from Brazil and Mexico. American OEMs have, in large numbers, turned to these two foreign markets to award metal enclosures contracts. Evolving technology is also having a great effect on the business, as plastic injection molds are creating less opportunity for metal components.

The firm has established healthy and effective relationships with major OEMs and has a proven ability to produce a high quality product that withstands the test of time. Management of the operation is a strength as the owners have extensive experience, spending their entire professional careers in this particular industry. Products are considered cost effective and competitive within the industry.

The problem: one customer accounts for over 60 percent of total sales. The TAAC presented the idea of formal marketing plan development to help nurture and grow the present customer base so the firm would not be reliant on only a few customers.

Assistance

The strategy for short- and long-term viability articulated the need for a formal structured, comprehensive marketing plan that would include the following elements: mission statement, evaluation of current market focus, development of characteristics of potential new customers, establishment of short- and long-range sales goals and alternative strategies, if needed. The marketing plan would also include information from past and present customers and a random sample of non-customers.

Results

The final marketing report gave the firm information and power that had never been part of the decision making process. The random information learned from past and present customers was enlightening and transformational for the firm. Pricing, an area thought to be well within industry guidelines, appeared to be the number one issue with the firm's present and past customers as well. Armed with this information, a new emphasis was placed on pricing and the different components of this aspect of the business.

The project additionally established a key account marketing strategy, including customer communications, sales and marketing aids and material, and a new organizational structure to support this approach. All of this has been implemented with initial results giving much enthusiasm to the owners as several new accounts have been secured and sold. Based on some of this preliminary information, the firm is now projecting a five-year marketing strategy that targets a 35 percent gain, annually, in gross sales. If this model is achieved, gross sales will be approximately 4.5 times higher than current gross sales after five years.

Background

The firm is a manufacturer of precision machined components used in the office equipment and computer industries. At certification the firm had 6 employees and annual sales of approximately $450,000.

The firm, founded in 1996, was experiencing a changing business climate that broadened the field for precision machining expertise. The owner was trying to position the firm to weather the changing climate by purchasing equipment capable of doing multiple tasks.  Formation of strategic alliances is another industry trend affecting the firm's business approach.

Assistance

To generate new sales dollars, the firm needed a solid foundation to build from. Thus, the recovery strategy recommended development of a strategic business/marketing plan. This provided the firm with immediate tangible assistance that addressed short-term problems and provided a beginning structure for the firm’s long-term goals.

This plan of action created and organized the marketing function and included:

• Establishing realistic goals and objectives based on the firm's capabilities.
• Introducing the firm's management to relevant business/marketing techniques including market segmentation.
• Contact management, key account selling, and pertinent business management issues.
• Developing initial sales and marketing materials to support the firm's target markets.
• Creating a business/marketing program to achieve the firm's goals.

Results

The firm has a sound and accurate marketing plan that outlines a precise road map for the business including a detailed sales forecast. The sales forecast was developed for the short-term, with on-going adjustments as needed. Next, the project recommended, organized, and categorized appropriate sales and marketing tools vital to attracting new business and growing the current business. The combination of these two elements had a positive effect almost immediately putting the firm on track for a 25 percent increase in sales and a 67 percent increase in employment.

Other significant events happened due to this project. The firm relocated to a much larger facility (three times the size of its old building). A substantial increase in business has afforded the firm to purchase an additional CNC machine. With the assistance of the consultant, a newly restructured line-of-credit was made available to the firm by a business-friendly bank. The firm is also booking a four-month backlog, the largest in the firm’s history. One final result that cannot be quantified in dollars or cents is the owner's professed greater respect for business, equipment, people, and presentation.

Background

This Rochester, New York tool and die shop, now being run by the second generation, still operates by the same principles it was founded on over 40 years ago. Over the years, not only were the owner's technical skills critical to building a successful business, but also his ability to form and nurture many strong and lasting relationships that still survive today.

For close to 20 years the firm experienced steady growth. It was the latter part of the ‘80s as both the nation, as well as the local economy, that the firm first began experiencing the slow down of its markets. Fortunately, the firm had forged strong relationships with a number of global OEMs, many located in the general area of the firm, that would sustain the business throughout those difficult years.

During that time the owner’s son and another key individual, joined the firm with the intent of transforming the business from a tool and die shop to a precision components manufacturer to meet the changing demands of the marketplace. Transformation needed to take place, but before the firm could implement change the business took another downturn, and management knew they had to do something different.

At the time of certification the firm had 38 employees and net sales of $2.7 million.

Assistance

The TAAC performed a diagnostic of the firm’s operations, which concluded that although the markets for the firm’s capabilities will rebound and manufacturing was adequate for the firm’s current output, it had limited internal structure in place. Specifically, the firm had limited marketing expertise, deficiencies in its information systems (IS), and the lack of a globally accepted quality system.

The first order of business was to improve sales, so the TAAC and firm developed a technical assistance project to improve sales and marketing. After analyzing the strengths of the business, it was determined that drawing on the firm’s excellent reputation for quality, high performance, and timely service could generate new sales. Thus, a strategic plan was created that articulated a business/marketing strategy to guide the firm toward a solid foundation and an opportunity for a long-term recovery.

This comprehensive sales/marketing strategy included a mission statement, evaluation of current market focus, and characteristics of potential new customers, short- and long-range sales goals with alternative strategies, information from past and present customers and a random sample of non-customers, various strategies and tactics for defining and gaining new business, training of the sales personnel, plus measurement and feedback mechanisms to evaluate and maintain the plan over the long-term.

Results

The owner and his management team have gained a number of things from the extremely successful sales and marketing project. First and foremost, the project provided a sound, accurate, and precise road map for the owner and his management team to follow. The plan has given the team confidence and control that had never been part of the decision making process in the past.

The customer feedback was enlightening and transformational for the firm. Pricing, an area thought to be well within industry guidelines, appeared to be a major issue with the firm's present and past customers as well. Armed with this information, a new emphasis was placed on pricing and the different components of this aspect of business. The project additionally established a key account marketing strategy, including customer communications, sales and marketing tools, including updating its web site, new sell sheet for the four different parts of the business (machining, fabricating, assembly & test, and design services); plus, the introduction of a new organizational structure to support the entire sales/marketing approach.

To date the firm has experienced a 43.4 percent growth in sales and a 30 percent increase in employment since certification. Management is thrilled with the results of this project encouraged to see what the future will bring.

Background

The firm is a manufacturer of precision machined components used in the office equipment and computer industries. At certification the firm had 6 employees and annual sales of approximately $450,000.

The firm, founded in 1996, was experiencing a changing business climate that broadened the field for precision machining expertise. The owner was trying to position the firm to weather the changing climate by purchasing equipment capable of doing multiple tasks.  Formation of strategic alliances is another industry trend affecting the firm's business approach.

Assistance

To generate new sales dollars, the firm needed a solid foundation to build from. Thus, the recovery strategy recommended development of a strategic business/marketing plan. This provided the firm with immediate tangible assistance that addressed short-term problems and provided a beginning structure for the firm’s long-term goals.

This plan of action created and organized the marketing function and included:

• Establishing realistic goals and objectives based on the firm's capabilities.Introducing the firm's management to relevant business/marketing techniques including market segmentation.
• Contact management, key account selling, and pertinent business management issues.
• Developing initial sales and marketing materials to support the firm's target markets.
• Creating a business/marketing program to achieve the firm's goals.

Results

The firm has a sound and accurate marketing plan that outlines a precise road map for the business including a detailed sales forecast. The sales forecast was developed for the short-term, with on-going adjustments as needed. Next, the project recommended, organized, and categorized appropriate sales and marketing tools vital to attracting new business and growing the current business. The combination of these two elements had a positive effect almost immediately putting the firm on track for a 25 percent increase in sales and a 67 percent increase in employment.

Other significant events happened due to this project. The firm relocated to a much larger facility (three times the size of its old building). A substantial increase in business has afforded the firm to purchase an additional CNC machine. With the assistance of the consultant, a newly restructured line-of-credit was made available to the firm by a business-friendly bank. The firm is also booking a four-month backlog, the largest in the firm’s history. One final result that cannot be quantified in dollars or cents is the owner's professed greater respect for business, equipment, people, and presentation.

Background

The firm manufactures molds used in plastic injection molding. The industries served by the firm include automotive, aerospace, toys, and tobacco. Products produced range in complexity and usage. More complex molds can cost more than $75K a piece. Some of the more simplistic molds can cost only a few thousand dollars. All products are sold domestically to major manufacturers. The firm has annual sales of approximately $1M.

Assistance

A diagnostic review was performed by the TAAC that revealed serious weakness in the firm's marketing and sales planning efforts. The diagnostic  also revealed that all sales were unsolicited; the firm made no attempt to contact potential customers. To increase the firm's sales, TAAC recommended implementation of an aggressive direct marketing plan. The firm immediately acted on this recommendation. They took an experienced mold maker who also had some limited sales experience and instituted a telemarketing program. This employee now spends 1-2 days a week selling the firm's mold making capabilities and services.

Results

By acting on the TAAC's recommendation for implementation of direct marketing, the firm was able to expand sales significantly. By implementing a telemarketing program, the firm was able to gain new clients and reduce its reliance on too few customers. The first month of this program resulted in over $200K in new business. The firm has also been given the opportunity to bid on a multi-million-dollar aerospace project as a result of this new marketing effort.

Background

The firm produces high-end, high performance audio/video components for the consumer durables market. The problem the firm faces is competition from imported products from Pacific Rim countries that can sell their components at below cost because they employ cheap labor and use inexpensive materials. At certification, the firm had 17 employees and annual sales of approximately $1.7 million.

Because the firm cannot compete on price alone, management realized the need for a dynamic advertising/promotional campaign. The firm lacked the expertise to develop a campaign in house. Thus, every new technological development, cosmetic change, and/or product enhancement the firm made lacked promotion. As a result, the firm's market share was eroding.

Assistance

The recovery strategy proposed developing a strong, action-oriented, advertising/promotional campaign. The campaign was based on the features and benefits of the firm's product line and developed to promote the firm's products to buyers of excellent quality, state-of-the-art equipment. The campaign was accomplished at a cost of $60,000.

Once the campaign was successfully underway, certain information began to flow into the firm, such as the public's response to the firm's product offerings. This information helped the firm evaluate the product line's cosmetic features in planning for next generation product. As a result, a second project, a new front panel design for the next generation of product, was implemented for a cost of $15,000.

After the firm had been introduced to the general public in a big way, and the cosmetic features of the product line had been changed, the need for UL/CSA certification was addressed. UL/CSA certification was completed at a cost of $10,000.

Results

The results from the projects exceeded original expectations. During the first year after completion of the projects the firm nearly doubled sales to $3 million and increased employment by 28 workers. The firm also received its largest contract ever when it signed with a 40-store electronics chain to supply its complete product line. Management expects more of the same for the future, as brand name and product recognition continues to increase for the firm.

Background

The firm is a manufacturer of metal stampings and roll-formed parts for the lighting industry. At certification, the firm had annual sales of approximately $1.8 million and 29 employees.

The current owners purchased the firm in 1986, and have continued the traditional business of the firm, producing parts primarily for the lighting industry. In 1999, in a defensive action against the effects of increased foreign competition, the firm’s owners purchased the assets of a New York City metal stamping company.

Unfortunately, even with the addition of the metal stamping company, the firm’s market continues to shrink due to increasing competition from foreign products, particularly from Taiwan and China. Although the firm’s manufacturing processes were adequate for the level of output, the markets for the firm’s products were mature and at best stagnant and sales representation was weak. Moreover, the market is almost entirely served by overseas manufacturers. Thus, specific areas were identified that if improved would ensure the long-term viability of the business.

Assistance

The recovery strategy included a plan to address both short-term and long- term objectives to help the firm recover from the effects of lost sales revenue due to increased import penetration. The first order of business was to replace lost sales.

After analyzing the strengths of the business, it was determined that drawing on the firm’s excellent reputation for quality, high performance parts and timely service could generate new sales. Thus, a strategic business/ marketing plan was proposed that would provide the firm with immediate (short-term) tangible results as well as a solid foundation for the firm’s long-term recovery. This plan of action created and organized the firm’s key business function, marketing and sales. A consultant was hired to provide the following deliverables:

• Research and assess the market and profile successful competitors.
• Compare the firm's products to its competitors and describe the characteristics, capabilities, and potential for the firm in its market.
• Develop marketing goals and objectives with focus on current and future markets.
• Analyze the growing trends of the industry while identifying target markets in specific geographic areas for new business opportunities; develop a marketing strategy that will attract that business and generate additional sales volume.
• Identify and profile potential customers for precision made-to-order sheet metal components and identify outsourcing OEM projects for the firm to evaluate as a means of opportunity.
• Develop realistic short- and long-range sales goals and objectives, sales forecasts, and an alternative strategy to achieve these goals.
• Evaluate current mode of sales representation and determine through market analysis, the most useful type of representation for the firm and its products, and develop and implement a sales training program for the organization.
• Develop to pre-production status, advertising media (promotional tools), that will enhance the firm’s visibility in its domestic market (i.e., video, overheads, sales automation software, web site and/or interactive CD-ROM, designed around the many features and benefits the firm can offer the market.

Results

The firm has gained a number of benefits from this successfully completed project. First and foremost, a sound and accurate marketing plan was provided that outlined a precise roadmap for the owners to follow, including sales projections. The sales forecast has been developed for the short-term, with on-going adjustments as needed.

Next, appropriate sales and marketing tools were recommended, organized, and categorized, to attract new business and continue growth of the firm’s current business. The firm experienced a 5 percent increase in sales, and employment increased 10 percent almost immediately after implementing the new tools.

Other significant events happened as a result of this project. To support the increase in business, a new addition was constructed that added an extra 70,000 square feet of manufacturing space. A new parts catalog was developed, as well as the firm's first corporate web site. Plus, realizing they could not do everything themselves while growing the business, management began the process of recruiting an experienced sales and marketing professional for the management team.

The project also recommended that management investigate the feasibility of exhibiting at industry specific trade shows and pursue the acquisition of an integrated sales and marketing software package to manage the firm's new and expanding customer base.

If successfully implemented, the firm’s business is projected to double within five years.

A non-tangible benefit of the successful projects is improved employee morale. The shop is operating more smoothly, there is an increase in productivity, and less scrap is produced, which translates to improvement in the bottom line.

Background

The firm was founded in 1940 by two brothers. Products include metal findings for jewelry, hardware, crafts, and the electronics industries. Additionally, the firm produces metal stampings, wire-forms (cold headed and threaded items), and houses complete electroplating and assembly facilities.

The firm has many advantages within its sphere of operations. The full range of in-plant operations includes every aspect of manufacturing from design—to tooling—to plating. Whether the customer’s order is small or millions of pieces, the firm can handle the order effectively.

Along with the technical expertise, the firm takes great pride in its customer service. On-time delivery and exact parts required are qualities that have gained the firm recognition within the industry. Management believes in taking extraordinary care in doing the job right.

Management is doing everything they can to keep the business profitable while battling competition from China. The industry is still shrinking and isn’t as static as it once was. Many larger companies continue to get larger, which afford them better purchasing power over smaller companies. This is why change must take place.

Assistance

The TAAC reviewed the firm’s operations and concluded that although the markets for the firm’s capabilities will rebound and manufacturing was adequate for current output, the firm was experiencing a dramatic change in how business was being conducted. Specific problems included how the product was being offered and shown to customers. The firm was lacking sales material that adequately represented the firm. Many times the sales reps would have to contact someone in sales to get information and then go back to the customer with that information, which frequently resulted in lost sales due to timing.

The recovery strategy focused on developing sales material that reps would use as they were generating business in the field. Interviews with the field reps provided feedback for the best material suited for this industry.

The outcome directed the firm towards a detailed product catalog that organizes all the different options, products, pricing, and configurations the firm has to offer. Part of the project would also prepare the material to be ready for future use in the web site and easily modified as features/changes deem necessary.

Results

The firm and the TAAC are very pleased with the outcome of this project.
The feedback on the catalog has been tremendous and positive. As the reps become more familiar and comfortable with using the catalog they have experienced a renewed excitement among their customers. The firm is now able to provide the customer with the information they need at the initial sales call, eliminating the need for a follow-up call. This industry moves too fast for the sales reps to waste valuable time waiting for information from the factory before they can provide the customer with a quote.

Management is thrilled with the results thus far. The firm has experienced a 25 percent increase in quoting activity since the new material has been available to all the reps.

Background

The firm was founded 115 years ago in Chicago, Illinois, when two brothers from Canada started the business in an eight-foot-square, unheated room located in the rear of a boarding house.

In the early years, one brother designed the tools while the other built the tools. Various devices and tools were perfected, mainly of and related to the bench lathe line. Even though a number of products were built and sold, it was the cataract line of bench lathes and attachments that was instrumental in making the firm what it is today.

A totally separate set of events that took place during the First World War would also shape the firm’s future. A small machining company located in Rochester, New York, started manufacturing collets and feed fingers. This company also was experiencing rapid growth and was soon seeking additional space. The search ended when a much larger shop was found and opened in Elmira, New York.

Around that same time, the firm was experiencing growing pains, which precipitated its relocation to Elmira, New York from Chicago in 1931, and on January 1, 1938, both firms merged and continued expanding by adding to both the facility and the family of products.

Management realizes that to remain competitive they needed to continually improve the firm’s presence in the rapidly growing and demanding industry the firm serves by way of new products and accompanying machine tools. Thus, they developed steps to strategically transform the firm into a stronger, more flexible global manufacturing company. Many of these steps have led to mergers and joint ventures with companies of complimenting products.

In the recent past, the firm has experienced declining sales each year, worldwide. Domestic sales are off 50 percent; European sales have declined close to 30 percent; and the Asian market is currently being fueled by China, whose national economic plan is to develop its own local machine tool manufacturers, making it more difficult to import machines if a similar machine is available from a local Chinese manufacturer.  At certification the firm employed almost 1,200 and reported sales of $170 million.

Assistance

The TAAC performed a diagnostic of the firm’s operations, which concluded the firm must develop ways to improve in the areas of marketing/sales communications and new product development in order to compete more aggressively against its larger competitors.

The recovery strategy would address the firm's need for a structured, all-encompassing marketing communications program. This program would combine the firm’s entire product offering (which is now scattered), into one corporate identity; providing similar logos, product messages, and printed material. Moreover, it would align the firm’s core products with a customer base more appropriate for the equipment’s capability.

The second part of the strategy included new product development. The firm has been facing competitors who offer on-line user friendly machine software. Today’s customers are expecting more and getting more from their machines, and one way of accomplishing that is through easier yet more sophisticated software to run the machines at improved productivity.

Results

Both projects have been successful. The marketing communications project, the first to be addressed, refocused and organized the firm's scattered marketing efforts. This project assessed the equipment-machine market by researching the background of the industry and conducting a competitive audit with an understanding of the overall strategy of the firm’s desired direction. The outcome was a clear direction for the firm’s market position; a unique high-impact corporate identity that will communicate a clear value proposition to the selected target audience; plus, a well defined tool kit that will be instrumental in reaching the firm’s targeted audience.

The success of this project can be measured by the increase of $10 million dollars in sales inquiries shortly after the plan had been implemented.