The Challenge
Our client is an independent subsidiary of a world-class automotive supplier, operating in over 46 countries with annual sales for 2009
exceeding €20 billion. The organisation specialises in enhanced driving safety manufacturing brake systems, systems and components for power-trains and chassis, instrumentation, vehicle electronics, tyres and technical elastomers.
Facilities located in Melbourne’s north commenced operation in 2007 supplying the three major vehicle manufacturers in Australia plus exports to Europe and Asia. Despite operating at best practice standards, revenue and growth were overly reliant on the declining success of local vehicle inducts who face ongoing product rationalisation and significant pricing reviews.
Understanding the
growing risk to long term revenue coupled with pressure from foreign Head Quarters to
minimise exposure,
maintain growth and meet
capacity targets, management undertook a thorough business review conducted under the federal government’s Enterprise Connect
* program.
Identifying the need for a market diversification strategy, our client required the expertise of an external consultant to develop and execute a market entry plan outside of the automotive industry.
Our Solution
Our first step was to gain a thorough understanding of our client’s business from engineering to manufacturing to assembly capabilities; their capacity and priorities for each. After completing a facility tour and interviews with key personnel, we recommended the following solution:
1. Research alternative customer market segments:
In our initial discovery stage of the project, we had previously identified the industry sectors and geographies that were not desirable to our client. Therefore, we set about developing a report identifying and profiling industry sectors which could benefit from their capabilities and services. Data was gathered from numerous primary and secondary sources detailing each recommended sectors long term trends, volumes and barriers/risks to entry. Each prospective industry sector was then drilled down to company level resulting in a substantial customised database being built.
2. Develop a marketing plan to target the identified new customer segments:
Our next step was to develop an appropriate B2B marketing plan to target the identified prospects and industry sector’s. Based on discussions with our client, it was determined that anonymity was required when contacting prospects until potential as a lead was determined. To meet the client’s requirements, Phalanx undertook a detailed mining process of the collated database; filtering suspects to eligible prospects. A customised questionnaire was also developed for administration over the telephone to all identified prospects.
3. Create a platform for future marketing/salesactivity to leverage from:
Finally prospects were qualified based on the questionnaire and agreed criteria developed with our client. Profiling included their turnover, current geographic boundaries, volume requirements, supplier needs and commitments, procurement procedures and key contacts. Warm leads were supplied to a newly appointed Business Development Manager within the organisation to develop ongoing sales.
Results Delivered
After working closely with our client and successfully implementing each stage of the agreed strategy, the following results were delivered (measured against our initial KPI of – number of quality leads) over a 6 month project duration:
- An industry segment profiling report developed from indepth research and collaboration with 9 industry bodies and collation of 7 industry databases;
- A database of over 1100 prospects was delivered tailored to our client specific capabilities and criteria;
- From the 1100 prospects:
- 30% resulted in eligible leads; and
- 67% qualifying into warm leads.
testimonial
“The Phalanx Team were excellent. They presented excellent opportunities for business diversification. Non-automotive has now become one of the company’s pillars of growth.”
F. Ruzicka - National Sales Manager