Apparel Manufacturer

Background
The firm produces high-end, high performance audio/video components for the consumer durables market. The problem the firm faces is competition from imported products from Pacific Rim countries that can sell their components at below cost because they employ cheap labor and use inexpensive materials.  At certification, the firm had 17 employees and annual sales of approximately $1.7 million.

Because the firm cannot compete on price alone, management realized the need for a dynamic advertising/promotional campaign. The firm lacked the expertise to develop a campaign in house. Thus, every new technological development, cosmetic change, and/or product enhancement the firm made lacked promotion. As a result, the firm's market share was eroding.

Assistance Provided
The recovery strategy proposed developing a strong, action-oriented, advertising/promotional campaign. The campaign was based on the features and benefits of the firm's product line and developed to  promote the firm's products to buyers of excellent quality, state-of-the-art equipment. The campaign was accomplished at a cost of $60,000.

Once the campaign was successfully underway, certain information began to flow into the firm, such as the public's response to the firm's product offerings. This information helped the firm evaluate the product line's cosmetic features in planning for next generation product. As a result, a second project, a new front panel design for the next generation of product, was implemented for a cost of $15,000.

After the firm had been introduced to the general public in a big way, and the cosmetic features of the product line had been changed, the need for UL/CSA certification was addressed. UL/CSA certification was completed at a cost of $10,000.

Project Results
The results from the projects exceeded original expectations. During the first year after completion of the projects the firm nearly doubled sales to $3 million and increased employment by 28 workers. The firm also received its largest contract ever when it signed with a 40-store electronics chain to supply its complete product line. Management expects more of the same for the future, as brand name and product recognition continues to increase for the firm.