Business Marketing Impact LLC
Search our site:    Advanced Search
Surgical Mechanical Research - Case Study

Surgical Mechanical Research (SMR) Case Study

The Situation

This 49-year-old firm consisted of two separate divisions. Ownership recently passed to a new owner who had no interest in managing the firm.

The largest division, Medical Products, offered four unique patented products. This division utilized direct marketing to sell to Ophthalmology and Otolaryngology healthcare practitioners. The company was well known and respected in both markets However, the Medical Products Division’s annual sales had dramatically diminished by 40% during recent years.

The older of SMR’s two divisions manufactured and sold proprietary backflow plumbing devices. The Backflow Division had been an industry leader since the firm was founded. However, this division had recently suffered drastically reduced revenues after redesigning its mainstay product. Annual plumbing backflow device sales fell by 65% and management was in a quandary as to the cause.

Research showed that the Backflow Division’s product had a design flaw that allowed teenagers to easily remove the product’s canopy covers with dimes for use as miniature Frisbees. Consequently, developers were shunning SMR’s products resulting in the sales reduction. It simply cost too much for property managers to replace the canopies versus purchasing a competitor’s products which where priced higher but designed without easily removable canopies.

Research determined that larger competitors of the Medical Products Division were offering broader product offerings at better prices for a variety of durable and consumable products.

The Mission

Develop a new business model for the and a solution for the Backflow Division’s commercial sales slump. The goal was to rapidly (within a period of one year) rebuild the company’s combined annual sales revenues to a minimum of $10 million to enable the new owner to sell the firm at a specific sales to earnings ratio.

The Solution

Redesign the backflow product with recessed screw holes and reintroduce it to the market as vandal proof. Recommend that the client address the previous vandalizing problem head-on by publicly recognizing the issue. Support the reintroduction with a print advertising product visual that visibly demonstrated the new recessed screw holes. Feature a strong graphics presentation with a bold Headline stating, “Introducing An Effective Weapon Against Children.”

Additionally, recommend that the Medical Products Division broaden its product line to over 400 medical products and consumables and become a distributor for surgical lighting, equipment and furniture manufacturers that complimented SMR’s own products, thus offering “One Stop Shopping” to its customers.

Support the Medical Products Division effort with a new Catalog featuring all 400+ products, a 20’x40’ Island Tradeshow Booth, and a unique 1 and 1/3rd Page B&W Media Advertising Campaign to provide maximum reader impact.

Reader awareness was further enhanced by placement of one of these combined units at the beginning, middle and final 3rd of each magazine (4 separate publications in all.) Further support of the program was achieved with a multiple product Publicity Program to further dominate the media market place prior to and during the media campaign. The unique aspect of the media buy was that it provided the client with a two page spread ownership for the cost of a 1 & 1/3rd Page B&W insertion, in other words; 3 two page spreads for the price of 4 pages.

The Results

Within 12 months the Backflow Division’s Sales increased by 160%, and the Medical Products Division increased by more than 400% resulting in combined sales of $10.8 million.

Thirteen months after retaining us the Medical Products Division was sold to the STORZ Medical Instruments Group and a month later the Backflow Division was acquired by an internal management group through a leveraged buyout.

Back to Case Studies

Serving the Portland-Vancouver-Beaverton Metropolitan Area, including: Clackamas, Lake Oswego, Milwaukie, Sherwood, Tigard, Tualatin, West Linn, Wilsonville, Hillsboro, Woodburn and all of the Greater Northwest
Copyright © 2012 Business Marketing Impact, LLC - All Rights Reserved