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| 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.
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| 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).
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| 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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