Interim Help - Case Studies

Computer Manufacturer

 
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Seafarers

 

 

 

 

 

 

 

PROBLEM:
A NYSE-listed, international computer manufacturer failed in a hostile attempt at a takeover of a much larger computer company. Knowing they couldn't survive as a $400 million company, they attempted to expand as a Value Added Reseller (VAR). Their market research was lacking, and they did not understand the economics of the VAR market. As a manufacturer, they gave away software to sell hardware, since they had a 70% gross margin on hardware.

The second major issue was the company typically sold to smaller clients, with an average sale of $60,000. Their sales staff was the highest paid in the industry (average $125,000), with the lowest quota in the industry ($350,000). Since, as a manufacturer, their gross profit was very high, they could afford to be generous.

The company had 23 sales offices and 24 support centers in North America. Their target market was smaller companies with the average sale of $50,000.

The challenge: How to re-focus the company to market and sell in this new environment.

 

SOLUTION:
We took on the role of North American Marketing Manager and North American Manager of Consulting Services.   Our solutions included:
  • Orchestrated multi-media public awareness campaigns which included development of new collateral and marketing programs, managing artists and agencies (both internal and external), developing budgets and training sales force on use of new material - to re-position company into new markets.
  • Analyzed business opportunities and forged strategic alliances with former major competitors (including Fortune 100 companies).
  • Developed new markets using existing staff and working through industry influencers and business partners. Managed five software centers and 14 sales offices throughout the U.S. and Canada.
  • Created a differentiation strategy that allowed them to obtain three of the largest deals in the history of the company ($1 million + deals).
  • Changed the focus of the marketing efforts from smaller companies to Fortune 1000 accounts, thereby increasing sales productivity 250% in two years.
  • Coordinated all trade shows (reduced the number of trade shows from 24 year to 3), direct mail campaigns, telemarketing programs, trade journal advertisements, public relations and all other aspects of marketing for new and existing products, with emphasis on positioning the company as one of the largest and strongest Super VARs in the world.
  • Involved in the recommendation, contract negotiation and purchase of 24 software houses. Merged 7 software houses into one. Wrote standards and procedures to use to effectively control the merged units and the newly purchased units.
  • Reorganized support group to profitably handle accounts nationwide, offering 24 hour a day, 365 days a year support, with a return call from a technician guaranteed in 15 minutes.
  • Implemented forms and procedures for control of projects, performance measurement and a copyrighted "Seven Steps To A Successful Installation."
  • Oversaw the roll-out and implementation of networks nationwide from three distribution centers, which included roll-out of point-of-sale systems for national retail clients. Coordinated just-in-time planning with major business partners (NCR, HP, IBM and others).
     
RESULTS:
  • Increased business by 200% and sales productivity by 250% in 2 years.
  • Increased sales staff''s annual quota from $350,000 to $1.2 million.
  • Improved consulting productivity 300% in two years (from $35K per man to $145K per man).
  • Analyzed competition and restructured pricing (upward) to position the group as a premiere solution, allowing them to become one of the largest Super-VARs in the world.
  • Became one of the top three world-wide suppliers to specific industries - from unranked two years earlier.
  • Increased software sales from less than 5% of the total business to 40% in two years. Also developed alternate channel network for software distribution.
  • Obtained a number two rating in Management Horizon's survey of retail industry computer users, from unranked the year before.

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