Case Studies

Situation
BDS was retained to assist the executive management team of a manufacturing company in the brass and bronze industry with identification of key strategic options for growing their business. The company is a leading supplier of brass products for the ball bearing and roller bearing industry. It is also a fully integrated manufacturer with production sites in the Midwest, Norway and Romania and serves customers worldwide. While the company is stable and profitable, growth has been stagnant and its ownership group wanted to investigate specific ways to grow the business, including the consideration of growing through acquisition. The company was aware of serious competitive threats within their industry and recognized the need to develop a deeper understanding of the current condition of the marketplace, competitors and other environmental factors affecting their profitability and long-term sustainability. They also recognized that growth was unlikely and probably could not be accomplished without serious consideration of the acquisition of a key industry player that would serve as an important complement to their products, processes and customer base.

What We Did
The BDS team conducted work for the client that included three projects – 1) a market study of the primary brass and bronze business in which the company competes; 2) A customer analysis based on one-on-one interviews with key customers in the company’s primary target segments; 3) the development of an Acquisition Profile to identify strategically-aligned companies for potential acquisition.

A macro view of the national market was prepared by identifying various existing secondary research sources to determine the state of the copper/brass/bronze industries in the U.S. A regional view of the market was prepared by identifying available sources of secondary research about companies in the industry sector that were geographically relevant to our client. In addition, primary research was conducted by the BDS team on companies that were either considered competitive or in the comparative, “same-type company” category.

These were confidential, blind market research interviews in which we did not disclose the client name. We told the companies that we were conducting a general market study on this industry segment. In most cases, interviews were granted. Two companies in the competitive group declined to talk to us.

Interviews conducted with key target customers yielded valuable information for the client in terms of how they were perceived on issues of pricing, performance, delivery and competitive positioning and value.

An Acquisition Profile, including potentially appropriate targets for acquisition, was prepared for the client. The profile provided comparisons of key product areas, processes, capabilities and markets served.

Results
The project conducted by our team gave the client’s ownership group a significant jump-start on the company’s strategic growth plan and shortened the length of time it would have taken them to analyze potential acquisition targets on their own. The work resulted in at least one acquisition target being considered and an initial contact was developed with that company by the BDS team. The client continues to pursue an acquisition strategy today.

Situation
BDS was retained by the president of a manufacturing company involved in the professional plumbing tool market. A mainstay in the hand tool market for more than 50 years, the company wanted to develop a sustainable plan for future growth by launching into the power tool market. Before our engagement, significant R&D had already commenced on the development and design of a cordless tubing cutter. The company had also previously retained the services of a market research firm to provide secondary research data on the PEX (cross-linked polyethylene) market and while the research was useful, company management determined that the information was insufficient and not comprehensive enough on which to base any decisions. Our client asked that BDS validate or challenge the company’s assertion that the PEX market for plumbing represented a significant growth opportunity for them. Company management recognized that their perspective of this potential growth market was limited and that the initial secondary research provided to them raised significant key questions about whether entering the new market would be prudent and profitable. While significant investment in resources and design had already been made in the new product, company management wanted us to do a much more comprehensive analysis of the market potential and recommend a course of action.

What We Did
In order to develop specific recommendations for the manufacturer regarding the market, the BDS team analyzed the current PEX market for to understand the scope of manufacturers involved in the industry, the variety of products currently used, and the price points of these products. We also reviewed and synthesized a variety of secondary research sources to understand market size, trends, and adoption rates of PEX across the U.S. To gain a deeper understanding of the target audience for the company’s new innovation, we conducted interviews with users and installers of PEX materials and those experienced with current tools available in the market. We interviewed other subject matter experts including manufacturers, contractors, wholesale distributors, retailers and trade associations.

Results
We learned that a wide variety of opinions existed as to the rate of adoption of PEX and whether or not it would eventually displace copper as a primary plumbing material. The lack of consensus over PEX’s advantages indicated that market adoption would take longer than anticipated and initially slow demand for their innovation. BDS also found significant price sensitivity among the professional trades. In the case of large plumbing contractors with significant employees and subcontractors, they did not want to invest in “expensive” new tools that the workers would either lose, damage or steal. We were able to deliver reliable price point data they would have to consider should they decide to launch the product. Our analysis also clearly defined three distinct markets for PEX plumbing materials. We demonstrated that these different audiences do not buy materials for plumbing in the same way. And, we showed that each audience would have different buying criteria. These findings had significant implications for our client in terms of future design of the new tool, channels for selling the tool, and price points. We determined that a “retail-only” selling strategy for the new product was risky because of a crowded field in the plumbing tool market and the marketing dollars required to successfully launch into key retailers. BDS recommended that an alternative or complementary strategy would be to align our client with a significant manufacturer of PEX material and jointly develop a new tool to be packaged with their material. Our client showed interest in such a strategic partnership and the BDS team facilitated an exploratory meeting with a PEX manufacturer to consider a joint product development initiative.

Situation
BDS consultants were retained by a large international technical association whose membership consisted of more than 40,000 professional members involved in advanced materials and various technology applications. The organization’s technical director, responsible for education and the development of content in the form of technical databases, technical forums and events, was developing a strategy for growth of his division and expansion of the products and services offered by the association. One of the proposed new products under consideration was a national executive forum or conference focused specifically on nanotechnology and the commercialization of nanomaterials. Because of the investment required to develop content, identify and acquire brand name industry experts, and cover all associated costs, the association retained BDS to develop an assessment profile for the viability and the potential ROI for a new offering such as the nanotechnology conference.

What We Did
BDS developed a competitive profile detailing similar existing conferences that would benchmark the association’s proposed forum with similar-category conferences, comparing content and focus, targeted audience, pricing and marketing approaches used to promote the events. We conducted in-depth telephone interviews with key industry professionals who were subject matter experts in the field and with prospective conference participants. Interviews were also interviewed sponsors and organizers of similar events.

Results
The market research concluded that the nanotechnology sector was crowded with seminars, and other events including forums, and numerous trade shows. We also revealed that industry-recognized thought leaders have been established for over a decade and that our client had no brand awareness in the nanotechnology sector. Our team presented estimates of costs to undertake this new initiative and determined that our client lacked the sufficient funding to successfully market such an event and meet break-even results on a first-time event. Instead, we identified specific potential groups, already established in this technology sector, with whom our client could collaborate on a nanotechnology event in the future. We also defined a marketing strategy for such a future collaborative event that included a meeting theme, focused topics, appropriate speakers and subject matter experts, budget requirements, and pricing that would result in a reasonable return on investment.

Situation
BDS was retained in 2004 by the CEO and the Chairman of the Board of MagicTan, a company involved in the still-emerging spray technology business, also known as “sunless” tanning industry. With Christine Stadler’s significant background in developing successful sales and marketing strategies for emerging growth companies, MagicTan retained her as the company’s Marketing Director for Hire. While the company had grown rapidly over a relatively short period of time since launching its first product two years earlier, sales had begun to slow and the distribution channel was not delivering consistent results. In addition, the company wanted to gain a stronger market leadership position and more aggressively compete against the market leader, a much larger and better capitalized company that was outspending MagicTan on advertising and marketing programs. Although MagicTan’s budget was limited, company management charged Christine and her team with developing a stronger MagicTan brand, increasing awareness, and providing stronger sales and marketing support to its distributors.

What We Did
BDS developed an integrated sales and marketing plan that articulated a new brand vision for the company and communicated it to MagicTan’s 200-plus distributors nationwide and internationally. A marketing theme and tagline was developed – the MagicTan Experience – around which all marketing and advertising programs were based. Since most of MagicTan’s distributors were salons and spas, we created a turnkey salon marketing program that resulted in a consistent approach to selling MagicTan services to the end user. New marketing themes were developed to focus on the company’s competitive advantages – innovative spray tanning technology that was best-in-class, a comprehensive portfolio of tanning machine products including an innovative hand-held sunless tanning system, and a complete line of complementary personal sunless tanning products aimed at end users to enhance and extend their tanning experience. Christine and her team also completely revamped the company’s primary website, including search engine optimization strategies, to increase usage of the site, encourage repeat visitors, and stimulate buying at distributor locations.

Results
The dramatic improvement in MagicTan’s marketing approach resulted in the company being perceived as much larger than it was and as the No. 2 competitor to the market leader. Distributors became more energized about selling the MagicTan line of tanning machines and ancillary products and sales of the company’s new generation of tanning machines began to grow. As the integrated sales and marketing plan gained traction with distributors, confidence in the company was restored with private equity investors. During BDS’s 15-month engagement with the company, the private equity firm reinvested in the company, made some replacements in the company’s management team, and positioned the company for future growth and a successful exit strategy.

Situation
BDS was engaged by a manufacturer of automotive performance products and accessories to conduct an extensive assessment of management and organizational issues within the company including their sales and marketing systems, customer relationships, organizational structure, and policies and procedures. We were asked to review business strategy to understand product lines, margins, expenses, capital requirements and other pertinent issues related to the sustainability and growth of the company. After the initial assessment of the company’s situation was completed, we identified concerns over lagging sales and organization challenges in the company. It was determined that one of our senior consultants would serve as an interim executive in the sales and marketing area. The company’s executive management had three near-term objectives for this relationship – stabilize the sales and marketing organization; assess the roles and responsibilities of sales and marketing personnel and align functions and responsibilities with the appropriate skill sets; develop an integrated sales and marketing plan to provide a roadmap for activities, resources and measurement of activities over the next three to six months.

What We Did
We conducted a comprehensive analysis of the product line and examined profit margins by product line, leading to a recommendation that the company adopt a unilateral pricing (UP) policy, a method for helping companies with multi-tiered distribution identify their best channels and train them to sell on value instead of price. Implementation of UP would help to stabilize pricing in the company’s primary markets which were experiencing significant pricing challenges due to the proliferation of Internet channels. The BDS team secured a UP implementation expert to work with the client. In developing the pricing strategy, we gained much better understanding of the company’s most valuable products and identified those products which were under-performing and had unacceptable margins. The rigor and discipline involved in the pricing analysis that took place over two months provided a roadmap for future product development and distribution.
We also developed a framework for a new product development process which resulted in the company’s ability to more effectively plan and allocate engineering, plant operations and marketing resources. As part of the development of an integrated sales and marketing plan, our team conducted a comprehensive competitive profile of our client and its primary competitors. Although a strong player in a niche market, our client’s brand position was weak and unclear. In order to help the company understand its sustainable competitive advantage and how to deliver that to the right customer audience, we worked with them on the development of a new brand position. By collaborating with their marketing group and senior management on the development of a new brand position, the company was able to more clearly articulate sales and marketing messages. As part of the brand positioning and message development, we provided the client a framework of messages to be used on their revamped website, in their literature and sales proposals, and in various advertising.

Results
As a result of our interim executive role with this client, the company’s senior managers were able to create a new vision for the company that was much more strategic and “30,000-feet” in perspective than their previous tactical and ready-fire-aim approach. Company executives also recognized that our assessment and our hands-on collaboration with them revealed leadership and senior management gaps. The client realigned certain key positions and adopted our recommendation for reorganizing their inside sales team by segment-specific responsibilities. Through our efforts, the CEO also recognized that the company was under-capitalized and he began to develop, with our assistance, a plan to secure additional capital. Due to our efforts in developing a plan for improving performance in sales and marketing operations, morale in those groups improved and sales began to increase as new market opportunities were more clearly defined.

Situation
Started in 1998 by a serial entrepreneur, Sandman Topdressing was developed to serve the needs of a highly specialized, niche segment of the lawn care industry. Aimed at an audience of luxury home owners and municipal sports and field managers, the Sandman “topdressing” service was born out of the founder’s dedication to deliver the perfect lawn and unequalled, completely smooth turf surfaces. The Sandman system was developed through a patented innovation. As the founder licensed his new process, his business grew steadily through a channel of approved Sandman licensee locations.

He asked the BDS team to assist in the development of a business plan that was to include franchising as a model for expanding into new markets. While the development of a growth strategy was a top priority for the founder/owner, he needed to juggle this initiative while still managing remote locations and maintaining a focus on marketing and sales.

What We Did
BDS revamped the founder/owner’s original business plan, developed a consensus around the vision for a growth strategy and articulated a clear message for the company’s future. After a market analysis and an assessment of the company’s competitive environment, a decision was made to franchise Sandman as the primary growth mechanism. It became immediately necessary to position Sandman as the “corporate” entity and to give the company marketing visibility as a market leader in the turf care, luxury lawn sector.

A detailed product and service analysis was conducted and, as a result, the business was divided into two distinct service offerings – residential services and sports turf services. This strategic decision necessitated the development of new marketing communications tactics to articulate this new message.

Our team partnered with a marketing communications resource that had extensive experience in the development of business-to-business and business-to-consumer marketing programs. We introduced the resource to our client, a budget was developed, projects were prioritized and work soon commenced on the first deliverable, a new company website.

BDS developed a standard message package and sales collateral based on strategic goals and provided a plan for disseminating messages around the Sandman brand and the franchising opportunities. The core of the program is a new website that serves both the end customer and potential franchisees.

Results
Sandman has expanded into new geographic markets and continues on a steady path of growth. The new website helps pre-qualify potential franchisees and provides details about the franchise opportunity. Franchisee inquiries have increased threefold and consumers now use the website to obtain more information about the Sandman process and to request quotes. Business is blooming in the southeastern markets served by Sandman and their seven locations.