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New product sales explode while prices increase. Integrated marketing communications program fuels demand with advertising, product publicity, literature and web.
If you "build a better mousetrap" will the world beat a path to your door? Maybe not.
Having a unique product doesn't lead to sales unless the right people in your market know about it. This case history proves that point and shows how one manufacturer used marketing communications to build awareness and demand.
When Roger Montambo, Vice President of Sales at Galvan Electrical Products, got Underwriters Laboratory's listing for the company's new Gold Series galvanized ground rods, he expected great things.
After all, the Gold Series was unique. No other galvanized ground rod had ever been UL listed. The new listing meant that Galvan's Gold Series rod was clearly compliant with the National Electrical Code while every other galvanized rod was now questionable at best.
Information about the new product was sent to Galvan's independent reps and stocking distributors, but nothing much happened. What was going on?
Roger recognized that there was resistance from distributors to take on a new product for which there was no demonstrated demand. Contractors weren't going to demand it unless inspectors required it, and the universe of electrical inspectors was almost universally unaware that the product even existed.
Working with Strickland & Company, Galvan made the strategic decision at that point to "pull" the product through the channel with communications to electrical inspectors and contractors, rather than push it through distribution.
The first step in the process was to update the company s web site, www.galvanelectrical.com, to prominently display information about the new rod and how it meets code requirements. Secondly news releases were sent to all applicable trade magazines and the company's independent sales reps.
As the news releases were breaking, a two-page flyer introducing the product was sent with a cover letter to more than 2,000 inspectors and contractors nationwide.
In October, a full page ad on the product broke in the IAEI News, the official publication of the International Association of Electrical Inspectors. The same ad ran again in the December issue, along with a major article on safe grounding practices written by a member of the Galvan staff. The article was also posted to galvanelectrical.com web site.
As the holiday s approached all was quiet. Sales were picking up steadily, but not dramatically. In January 2004, lightning struck. Sales of the Gold Series rods tripled December in terms of units sold. In February, they increased again, this time by 50%. In March they exceeded 11 times the December sales, at the same time the company is announcing significant price increases.
Galvan's sales of accessory products, such as connectors and couplings, has also been lifted by the demand for Gold Series rods. In addition, the company continues to manufacture a line of non-listed galvanized rods, and sales of those items have remained stable despite the growing popularity of the new UL listed rod.
Galvan had been a regular advertiser in the electrical marketplace for about three years, which has had a favorable effect on brand awareness. According to Roger, the established, positive image the company cultivated over those years helped reduce resistance to the new rods, making the introduction even more successful.
"Were not the biggest player in the game, but the Gold Series has made us the market leader," Montambo said. "You can't credit the marketing communications for everything that's happened over the last few months, but I know it certainly played a major role."
Thanks, Roger.
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