Market Diversification
(Cable Manufacturer) – This manufacturer of metal cables primarily served the automotive industry. As that industry continued to offer only eroding margins and shrinking volumes, the company decided to grow sales in the medical and marine product industries. They used the TAAF program to drive their diversification through a series of projects. First, the company fine-tuned their corporate strategy to better define their goals and establish their initial direction. Next management re-launched the website based on a new vision of who their customers were and how the firm could best serve them. The company then used the program to develop a targeted marketing strategy and tactical plan to better penetrate the medical devices industry. This included market research (including interviews with key decision makers and purchasers in the market), detailed recommendations on which market niches to pursue (based on best the best ROI for the company), and realistic budgets for the various options. The company then used its own resources to implement the plan.
The company has already made significant progress. Sales in medical and marine categories now make up almost 8% of sales (compared to less than 5% before).