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Organizational Transformation - Change Management Case Study
Business Situation: Heavy duty equipment manufacturer serving the industrial weighing marketplace needed to revitalize a slumping division that had grown stale and unproductive in the years after it had been acquired. Lack of competitive product development and product cost and product delivery had been costing the company market share and profitability.
Solution: Reorganized existing operations and personnel in order to become more responsive to customer and sales force needs and issues. Focused on material purchasing and rework issues to drive product cost down. Place seasonally needed products strategically around country to win quick turn orders and to minimize delivery costs. Drove new in-house product development initiatives and partnered with outside product development partners with needed expertise to develop complementary products required to compete with other market players. Developed plan for additional channel marketing partners with robust training infrastructure to enhance sales performance.
Product Development - Product Commercialization Case Study
Business Situation: A high tech, alternative energy products focused on providing sales of off-grid power generation equipment needed help commercialize a spin off product for mass markets. The company had never developed sales or marketing channels for a broad market approach. It also needed to refine product offerings and manufacturing operations to meet competitive market pressures.
Solution: Analyzed competitive products and potential product application markets which led to creating product specifications and manufacturing cost requirements that met industry needs. Created an independent sales channel that leveraged existing market presence with complementary product offerings. Developed an introductory market strategy that focused on both brand and product awareness campaigns focusing on industry events and conferences, print media campaign as well as internet advertising campaign creating focused awareness positioning using push marketing methodology.
Market Development - Market Introduction Case Study
Business Situation:A successful medium sized European company is looking for a quick and effective way to test and bring their products to the North American market. As a medium sized company, less than $40 MM in sales, finding the most cost effective avenue to the domestic market was vital.
Solution: Developing a direct North American Sales force that was understood the product and the market and that could manage the broad customer base was too expensive. Creating a sales staff and building an independent representative sales organization would take too long and would delay the product introduction. The solution was finding a company that was already an existing player in the marketplace that could market the products as complementary items. The domestic company used its' position as a reliable supplier in the market to provide instant credibility to the products, a pre-existing sales force capable of selling the product and advertising and marketing strength that gave the products visibility in the market.
Sales Development - Sales Channel Development Case Study
Business Situation: A successful instrument manufacturer was looking for a way to capitalize on their strong reputation in the industrial marketplace and take their products to a broader commercial marketplace. The company was selling through a network of independent representatives and needed to minimize any negative effects on the existing network.
Solution: After a review of the existing representative sales force it was decided that adding additional reps or replacing reps would be counter-productive and ineffective, there needed to be another avenue to the proposed market. We reviewed the purchasing habits and preferences of these customers and found that they would rather purchase through distributors. The solution entailed creating distributor specific products, brochures and advertising. A distributor agreement was created along with a profile of a target distributor for recruiting purposes. The company created a Distribution program that worked in cooperation and coordination to the existing Representatives to expand the market penetration.
Strategic Planning - Five year Business Plan Case Study
Business Situation: Medium sized, domestic equipment manufacturer if considering an aggressive growth strategy over a five year period. They are looking for insight into available markets, products, geographic and channels, that would help the company more than double in size over the next five years without the need for additional acquisitions.
Solution: Developed a detailed overview of potential markets with revenue growth potential, profitability projects, market entry obstacles and costs, and management/personal requirements. A summary of the overview is available here.
Ownership Transition - ESOP Case Study
Business Situation: A small closely held manufacturing company with sales less than $15 MM was in their 40 year of operation with the founder still maintaining a majority interest in the company. The founder was looking for a way of divesting some or all of the ownership position while maintaining security and viability of the company for the employees.
Solution: After reviewing many options including partial corporate stock redemption and corporate acquisition by non-competitive third party, the recommended solution was an implementation of an Employee Stock Ownership Plan. Because the company was financially sound the ESOP provided a number of attractive options. The company borrowed enough money to allow the ESOP to purchase a controlling interest in the company, the financial benefits of the ESOP kept debt loading to a manageable level and local control was maintained.