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Manufacturer of Wooden Toys
Background
The firm is a manufacturer of small wooden kazoos, tops, and whistles. At
time of certification, the firm had 12 employees and annual sales of
approximately $638 thousand.
As a producer of all wood kazoos,
tops, and whistles, the firm was import impacted by penetration of
domestic markets by overseas manufacturers, and the inroads of alternative
fabricated materials used to produce these products.
The firm had begun addressing the materials issue by experimenting with various
types of fabricated materials, while maintaining an active presence in the
market by attending trade shows and investigating niche markets that still sell
only all wood toys.
Assistance Provided
Diversification into new markets that would capitalize on the strengths of the
firm's current products was the firm's primary strategic objective. The action
necessary to achieve this objective encompassed a planned yet action-packed
marketing effort that targeted new business from current and potential
customers.
To succeed in new markets, three critical functions required attention. The
firm, with NYS TAAC assistance, needed to develop a plan to build an organized
marketing function and evaluate opportunities for new business. This project
took into consideration the firm's current activities in marketing and then
developed the structure and tools needed for obtaining new business. The project
cost approximately $20,000.
A second project addressed management's need to operate and understand the
techniques and procedural aspects of its automated equipment. This project would
address how to design and operate the automated equipment to benefit from the
machine's vast capabilities. This project would cost $10,000.
A third project would assess the firm's needs and capabilities as related to its
information system requirements. Based on the analysis, the consultant evaluated
the current implementation of the "Prosper" package. Recommendations were made,
along with a plan of action to integrate the selected solution. The project cost
was estimated at $25,000.
Project Results
With two of the three projects completed, the firm was experiencing a lot of new
interest by customers. Existing customers are pleased with the new aggressive
stance to sales and many new, prospective customers are just now finding out
about the firm.
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