Case Study
#1
Our client was a privately-owned startup, a producer of innovative,
but single application peripheral equipment with some advantages over
its competitors. The first type of equipment was sold to three customers
utilizing internal contacts, but the equipment needed much tech support
and sales ended shortly after.
We identified grant money for developing a second type of equipment
and, on the marketing side, we developed two parallel tracks: OEM and
end-users. In both tracks we looked for companies that recognized the
need or had problems in the area of the solution offered. Another guiding
parameter was allocated budgets, within our target companies, for developing
or buying a solution.
An OEM contract for 10 first generation units was signed with an equipment
manufacturer. The OEM agreement was non-exclusive, which allowed us
to expand our target market on both tracks. We penetrated the market
utilizing the success with the OEM and within two years of the first agreement,
and four years from the establishment of the company, the client reached
profitability.
This client chose to let Performance Systems maintain all its US marketing
and sales activities. By the sixth year of operation, the product was
recognized as being “the best of its kind,” having worldwide
sales to all market segments, OEM and end-users, and over 50% of the
market share.
Case Study #2
The client was an incubator project with a unique and innovative medical
device that consolidates several applications into one unit. The product
was developed for the military market but despite the numerous showings,
demonstrations and positive responses, the process was slow without any
significant sales.
We also encountered many challenges in dealing with a government organization.
We turned to the civil market and found it to be extremely price sensitive
and less interested in the quality of the products. The third approach
was to reach special operation units within the military, which showed
interest in the quality product, and had the power and ability to bypass
the bureaucracy of their organization.
Initial sales led to successful field usage. The success stories, growing
reputation, plus the consistent and continuous promotion within the
larger organization led to eventual breakthrough - the product became
a standard within the military. With growing attention to Homeland Security
and Disaster Preparedness it is now also making its way to the civilian
market.
Case study #3
The client is a public company, a pioneer and a leader in its field,
engages in the design, development, and marketing of solutions for
digital consumer electronics markets. The company has tried unsuccessfully
to partner with another, larger market leader in its own field for
a specific application. All attempts ended up with the same individual,
holding a key position within the target company who flatly rejected
our client’s offering. PS was retained to learn the internal
structure and decisionmaking process and to identify alternate routs
within the target company.
After several weeks of attempts, PS had gotten similar results as
the client. All routes led to the same person who refused to meet
with the client. Realizing that the route for collaboration between
our client and their target company must go through this individual,
PS launched a systematic and persistent campaign to reach the
objective of re-opening the shut door, being heard, in person by a
larger audience and with an open mind. Recognizing some cultural,
political, personal and other factors in play, PS was able to raise
interest, arrange a series of face-to-face meetings with the “opponent”
as well as other senior staff members of the target company.
As it turned out, the target company did not enter into any agreement
with our client during our yearlong engagement. In spite of the fact
that we facilitated several meetings and working sessions between
our client and the target company, the objectives of our client were
not reached. The target company devoted time and resources for
the re-assessment of the offering but they did not recognize a strong
enough market demand, and the added value of our client was not significant
enough at the time of our involvement.
Case Study #4
Our client is a manufacturer of high-precision parts. The company specializes
in OEM production for some of the world’s leading manufacturers.
The CEO requested a US market study for two products that the company
developed in-house – its first two original products.
After two months of work, we concluded that the sale of one of the
products would violate an existing US patent. We could not “kill”
the other, ingenious product, which was simple and smart. So we contacted
the major players in the market that made products along the same
lines, seeking a strategic alliance.
The leading company in the market, selling $400 million a year, liked
our client’s product. It went from the VP we originally contacted
down to the Director below him, then down to the New Products Committee
and ended up on the New Product Manager’s desk. All of this
took approximately five months, but we were “in.” The next
phase was to create a private label arrangement, in which our client
will sell its products to the American partner, which will, in turn,
sell it to Home Depot, Lowe’s and the other DIY giants.
The first shipment was a small test order, then another, then a larger
order for a certain customer, then a container. The process is still
at an early sales stage, but it took 18 months, even though both sides
did everything they could to make this partnership work. We performed
all the tasks for our client on this project, from the initial discovery
to initial contact to receiving and processing the purchase orders.
As this client puts it, “I put paper in my fax machine. Keep
those orders coming.” And we do.
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