Hope is Not a Strategy

ABSTRACT

The research included a competitive analysis, identification of industries that Quick-Crate could serve, and idea generation for creating innovative marketing and sales opportunities.

FULL TEXT

Marketing affects every aspect of business - from packaging and customer service to advertising and community relations. It is a company's lifeline to sales and, ultimately, profits. For many small and medium-sized enterprises (SMEs), however, marketing is one of the most overlooked aspects of a business.

"Small and medium-sized manufacturers often lack the time and financial resources to devote to effective marketing," said Dorette Coetsee, director of operations for The Export Consortium. "Many of our clients are so involved in the day-to-day operations of running a business that they fail to address marketing until they are in a situation where it is critical to find new customers."

The Export Consortium is a nonprofit organization that helps SMEs find new markets through customized research. The Consortium's marketing division, Venture Elements, helps clients implement the research by developing effective marketing tools, including print and online materials. To date, the Consortium has helped more than 1,000 companies grow their markets domestically and internationally.

According to Coetsee, there are many reasons why SMEs succeed, but an overriding factor is planning. A business plan should serve as a road map for your company, and marketing should be an integral part of that strategy.

HOPE IS NOT A STRATEGY

An effective marketing plan should begin with an analysis of everything a company does as well as everything its competitors do. The marketplace is continually changing, and so are customers and competitors.

While developing a strategic plan for its business, League Manufacturing of Greenville identified marketing as one of its weaknesses. League has been in business for more than 90 years. The company decided to launch a line of collapsible, reusable shipping crates under the name Quick-Crate.

"We never really had to market ourselves. We survived through competitive pricing and exceptional customer service," company official Fraser League explained. "But when we decided to develop the new product line, we knew that to be successful we needed to do some marketing. So we leaned on The Export Consortium for assistance with market research to help push us in the right direction."

The research included a competitive analysis, identification of industries that Quick-Crate could serve, and idea generation for creating innovative marketing and sales opportunities. Based on the research, the Consortium has developed targeted marketing messages for specific industries and integrated these messages into print and Web site materials.

"As a custom manufacturer, we are very good at what we do. One of the things we are not good at is marketing. We needed help and found it in the Consortium," League said.

IMPLEMENTATION IS KEY

While a marketing plan is critical, it is implementation that truly sets a company apart. In order to implement an effective strategy, a company first must know why it is in business, who its customers are, and why it should care. Consumers are not looking for products and services; they are looking for solutions and benefits. Companies must be able to convey what makes them different and why customers should believe in their product or service.

After 21 years in business, Heidi Black of Bringing You Baskets and Faithful Foods Inc. of Lexington found herself asking the key question why she was in business.

Black creates custom gift baskets and also makes a line of southern gourmet food products under the name Faithful Foods. Black's business has performed consistently. It is the Midland's oldest gift basket company and is known for "making gift-giving easy." But the time had come to take a hard look at the food line.

"I had reached a point where I needed to move forward and begin marketing the Faithful Foods product line," Black said "The Export Consortium helped me develop a Web presence as well as marketing materials for specific customer segments."

Black's award-winning products have earned a reputation for quality, and she is now marketing them for private labeling for gift-giving and special occasions. With the Consortium's help, she has developed targeted marketing campaigns for wedding planners, corporate accounts, and wholesale and retail outlets. The campaigns drive traffic to a newly developed Web site where she can track results.

BE PROACTIVE

Every aspect of a company's marketing campaign should be reviewed annually. It is prudent to conduct a competitive analysis routinely and to engage customers. Ask them what the company is doing that they like and what the company could do better. No high-performing company can afford to be complacent in its marketing, because unanticipated events can impact a business significantly.

Such was the case with Shehan Tool and Die. The Pickens machine shop counted a company in the aerospace industry among its major accounts. However, the events of Sept. 11, 2001, resulted in a decline in business "The greatest challenge right now is that our biggest client is taking his business to China," owner Al Shehan said. "This has been an ongoing process, but, little by little, we are losing more and more business overseas."

Shehan now is working with the S.C. Manufacturing Extension Partnership (SCMEP) and the Consortium to build the company's brand, identify new customers, and develop and implement a marketing plan for growth.

TAKE ADVANTAGE OF RESOURCES

Nonprofits such as The Export Consortium, S.C. Chamber of Commerce and SCMEP strive to help South Carolina manufacturers remain competitive and expand their businesses. And just as companies should continually examine how they can better serve customers, SCMEP, the Chamber and the Consortium are always looking for ways to improve their services.

SCMEP recently added a growth and innovation service to its repertoire. Developed by Doug Hall, founder of Eureka! Ranch (www.eurekaranch.com), Eureka! Winning Ways@ helps companies develop measurably smarter choices for growth. The nationally recognized program is now available to manufacturers across the state.

To learn more about Eureka! Winning Ways(R), contact Ed Maier at SCMEP, 864-228-2571, or Dorette Coetsee, at The Export Consortium, 803-777-8870.