case3

Telecommunications Start-Up Firm

Client Profile

Product:
Telecommunications

Market:
Business/Consumer

Position:
Startup

The Assignment:
When Company Z first contacted PH Advisory senior management, the Southern California start-up had developed a variety of revolutionary, six-line business and personal phones that could be installed by the user without phone company permission (the first of any attempt by a private firm under the Carter Phone Supreme Court Decision.)

Company Z originally planned to market its product through a traditional network of distributors, independent representatives and regional dealers. The firm hoped to become a national competitor in the new fast-paced communications industry within a year.

The Method:
After less than three months of intense research and analysis, our staff recommended another approach that it strongly felt would yield far better per unit profits, more control, faster market penetration, and long-term viability. The effort included planning and consultation; market profiling, end user lead generation and dealer recruitment, sales and marketing controls and collateral material production.

PH staff fashioned a dual-market strategy: large business accounts would be sold on a direct basis while a regional network of dealers would be recruited to sell to smaller businesses and consumers. Researchers identified eight major metropolitan zones for the initial marketing thrust and a targeted audience of direct mail prospects within each market. Once sales materials were ready and the sales organization was in place, a series of three 80,000-unit direct mail programs were dropped in a tightly scheduled nine-week period. Furthermore, PH personnel researched and opened regional offices, established sales territories, recruited, hired and trained sales personnel, developed standard operating procedures for the sales department and implemented an enterprise-wide software-based sales contact management system to assign, track and fulfill incoming leads and sales orders.

Finally, extensive research was conducted regarding the type of sales support necessary to make Company Z competitive in the telecommunications industry previously dominated by a few international giants. Using that information, The PH Advisory staff conceived and produced a range of collateral materials including: product packaging, a full-color company book, product manuals, specification sheets, dealer support packages, space advertisements, dealer agreements, point-of-sale materials and business forms.

The Result:
In the first month of the dealer recruitment campaign, Company Z signed over 500 regional dealers and contacted hundreds of interested dealer prospects. The successful lead generation campaign resulted in over 6,000 high-quality dealerships and product leads. Within five months, Company Z was established as a nationwide telecommunications firm with a coast-to-coast dealer network and a strong base of direct salespeople.

Due to Z’s successful start-up, the company was purchased at a sizable profit by a large multinational account less than 3  years after its initial launch.