Case study: New product and market development in the EU

Published Categorized as Case study, Manufacturing 4.0, New Product Development, Quality, Sales & Marketing, Supply Chain Management

CHALLENGE

To fill the production capacities, to diversify the offer, to design new products with higher added value, mainly according to the existing technology, and to find the market and customers for these products.

OUTCOME

A product line has been developed with minimal investments in technology, competitive on the market in the region and beyond. Several customers were already found during development, and the plan is to optimize production and expand business.


Task and limitations

A producer in the non-woven textile industry wanted to diversify its range of products, with the primary goal of fulfilling its production capacity. By filling the third shift, we wanted to avoid the daily switching the plant on and off, which results in high costs and wasted energy.

The client fulfilled most of the needs of the domestic market with its polyester products. Due to the large volume and low price, the product is not logistically profitable to export, so exporting and searching for new markets for existing products was out of the question.

The client wanted to do it with as little investment as possible, so the goal was to come up with something that could be added to the offer, and that could be produced with existing technology. It is extremely important that the products have a higher added value, that they are suitable for export, that the price is competitive and that there is a sufficient number of potential buyers in the region and beyond.

Solution

As part of technical-technological consulting, we helped the client during the development and improvement of products according to the required market specifications. We started with the development of a new product line, and at the same time we were preparing for sales and marketing. We used our knowledge of the industry and researched the market. We monitored competitive products and collected feedback from customers, based on which we developed additional product lines.

Maintaining product quality and the lack of employee experience related to the new production process proved to be challenging. It was necessary to organize a quality monitoring system that includes precisely defined production processes. We maximally simplified and described the processes and introduced standard operating forms, which significantly reduced the possibility of errors.

We also helped the client by consulting on logistics, in order to ensure optimal modalities of packaging, storage and transportation of new products.

We managed to keep investments in technology to a minimum. During the development, it turned out that due to the quality of the final product, it is necessary to invest in a specific dedicated tool. As we designed the tool in-house, we further reduced costs for the client.

Since the product line diverged from the client’s primary products, we proposed to spin off and market that product family as a separate brand. The client did not have enough available human resources with the necessary knowledge and experience for the sale and promotion of new products on the foreign market.

Therefore, we took over all sales and marketing activities related to the new brand. This included processing the entire market of potential buyers, whereby in the first phase of cooperation we focused on the areas of neighbouring countries in the region.

We sought customers through direct contact and advertising. We implemented effective marketing campaigns with the aim of attracting new customers and making the new brand recognizable. We created the necessary materials in several languages, from the website to technical sheets, brochures, advertisements and other promotional materials.

We carried out all communication with customers before and after the sale. For better organization and monitoring of relations with customers, we have implemented a simple CRM system. In this way, the client is also provided with a quick overview of the situation and follow-up of orders from their side, and their employees can easily take over sales activities when the time comes.



Result

The task of filling the third production shift and developing a new range of products with higher added value has been accomplished. Within our capacities, a wide range of activities in the field of technological consulting and business processes have been carried out.

We helped the client with his concerns:

  • what exactly to include in your offer,
  • how to develop new products,
  • how to produce them efficiently and
  • to whom to sell new products.

In terms of costs and return on investment, the development paid off already in the first year of business activities. The first key major customer expressed interest in the products during the development phase.

The organization of quality control enabled production without errors and with significantly less waste. With new production processes, a higher level of quality was achieved and maintained, which is necessary for placement on the EU market.


In the second phase of cooperation, we will work with the client on further optimization of production and cost reduction, as well as on preparation for digitalization of business. The story will continue.