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Manufacturer of Cloth Towel Dispensers
Background
The firm, located in Utica, New York, is a manufacturer of cloth roll
towel cabinets and towel processing equipment for the industrial laundry and
linen supply markets. The firm began business in 1936, and has enjoyed mostly
steady growth for many years. However, in the past five years there has been
increasing demand for cloth towels which has prompted several foreign firms to
enter the market. Competition continues to increase mainly from Germany, Japan,
Switzerland, and Italy. The combined imports from these countries account for
more than 75 percent of the U.S. total. The growth in imports reflects a major
foreign presence in the United States; many foreign-owned manufacturing and
assembly operations, as well as distribution networks are the result.
Assistance Provided
The NYS TAAC completed a diagnostic review and adjustment
proposal for the firm that determined expansion of sales revenue to be the primary objective. The plan of action necessary to achieve this
objective encompassed an aggressive, action-oriented, marketing plan that targets
potential markets and customers. The project was
approved and successfully completed with the aid of a marketing professional.
The outcome included the firm's first ever mission statement and vision
statement, short- and long-term marketing plans, product evaluation, sales
representation, and description of appropriate marketing tools.
All of this information has helped the owners and managers of the firm become
better prepared to compete within the market. One area of the marketing report
detailed a very urgent need to re-design the towel cabinet. The foreign
competition was viewed by customers as much more appealing and up-to-date, and
hence, a preferred buy. Based on the strength of the marketing report the NYS
TAAC amended the approved adjustment proposal to include a project to re-design
the entire cabinet. The approved product design scope of work includes the
development of specifications and drawings, building a prototype cover, testing,
final design and working prototype, and the design of production tooling and
fixtures as required.
Project Results
The firm reorganized the sales efforts based on findings
in the marketing plan; new target markets have been approached with some success
in acquiring new interest and customers. Once the cabinet prototype development
was complete, the firm
had the marketing information and a newly designed product that is
competitive with every manufacturing firm presently servicing the industry.
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