Case Study

Neutralizing Commoditization

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SITUATION

An entrepreneur purchased a successful local, same-day delivery company. Over the next few years, the owner made several acquisitions of smaller delivery companies and invested in software and communications hardware in order to improve the speed and accuracy of dispatching drivers for pick ups. However, the owner was frustrated that “natural” revenue growth was almost non-existent, he had been able to grow almost solely through acquisitions and he found it difficult to retain a strong percentage of the acquired accounts past the first months of transition. Also, the marketplace was not aware of the clear and superior advantages the owner’s investment in technology had created for his company compared to his competitors. FabCom was engaged to develop a comprehensive, three-year marketing strategy to position the company as a market leader in the sameday delivery segment.

GOALS/OBJECTIVES

Goals

  • Define mission and vision statements.
  • Develop, brand and promote a unique and effective market position.
  • Increase revenue/number of customers 30% per year for five years.
  • Improve acquired customer retention from the current average of 65% to 90%.
  • Increase shareholder value by 150%+ in five years.

Objectives

  • Increase awareness and understanding of the company’s uniqueness among the target audience of delivery service purchasers.
  • Introduce new services as deemed needed by the market.
  • Expand awareness and customer base in key niche markets (finance, legal, advertising, printing, etc.).
  • Promote “natural” customer growth vs. acquisitions.

Strategy/Tactics

The comprehensive marketing strategy and tactics were built around the positioning statement, “Better. Faster. Smarter.” A name change – to IntelliQuick – was a key element of the strategy in order to eliminate confusion about what services were offered. The company had been known by a name (Jet Delivery) that led many potential customers to rather than a company that makes point-to-point deliveries. A new, distinctive, non-confusing name and corporate identity were created and the company’s website was redesigned to emphasize its industry-leading functionality (customers could order, track and confirm deliveries online, right from their own computer – this was uncommon in 1992) and to create a more resonating brand. FabCom launched sales training and believe that this was an airfreight delivery company sales automation integrations with the new campaigns to create more productivity from the company’s sales team and to ensure conversion. Print, radio and direct mail were utilized. In addition, other internal campaign elements were deployed to ensure stakeholder buy-in, including signage, vehicles banners, driver uniforms and ID badges, customer incentive gifts, and sales channel collateral, all cohesively communicating the company’s new name and position.

intelliquick

Results

During the first nine months of the three-year comprehensive marketing plan, revenues – not including acquisitions grew by over 50%. In addition, the increased market awareness for the company, and its superior technology that delivered unique service advantages, put severe pressure on several thinly funded competitors. This allowed our client to make additional, previously unforeseen acquisitions at very advantageous terms as competitors surrendered rather than continue to see sales erode, or filed to make the kind of investment necessary to level the playing field again. All goals and objectives for the strategy were met or exceeded. The client had FabCom initiate major recruitment campaigns for drivers and customer service staff in order to keep up with the rapidly growing business. FabCom continues to work with the client as they prepare to open new markets in their region. In fact this client commissioned two additional three-year strategies as we outperformed the goals and objectives on the first two.

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Author:

Brian Fabiano

Co-Author:

Bob House