NORTH EUROPEAN PLASTIC CO. (single-use plastic fish boxes):
North European Plastic co., had various meetings with the Ministry of fisheries in Spain. Decided to enter a project based on promises raised on those meetings. Invested 600.000€ in 2 injection molds and reached an agreement with a local plastic manufacturer. Later registered a local company, opened an office in Madrid, sent an expatriate and hired a Commercial Director. Objective was to stop the massive use of wooden boxes for fish and change to plastic, more hygienic and friendly. Expected demand was 2 million boxes per year.
Ten months later, only a few hundred boxes were sold, after every single potential client was visited intensively.
PROBLEMS: Unusable box design. High Price. Lack of support from Ministry. Consolidated mentality for wooden boxes.
RESULT: 1 mill€ invested and office closed.
HOMELAND SECURITY: Creation of new software company.
Spanish/Japanese company opened a Business Development process to minimize the risk of a new market entrance.
For 12 months Developers visited the relevant authorities, investigated the existing products in the market, researched products outside Spain. They created a business plan and shared it with the decision making people at the Spanish National Police.
Everything received the necessary blessings from the market and it was decided to start the new company. Software Developers were hired and started working in the creation of the product whose design had been shaped following the client advise.
One year later, they won an important contract for the detection and control of fake document and exported this system worldwide with great success.
ANPHIBIOUS AIRCRAFT: Governmental Sales.
Asian aircraft manufacturer, designed a state of the art amphibious airplane with firefighting and sea rescue capabilities. Spain was identified as a top potential market. They assigned a Developer to study the market. All the key players were identified and contacted: firefighting pilots (to get their impression and understanding of their needs), maintenance companies, private chartering companies, firefighting authorities, military commanders, etc…
Meetings and presentations were held for almost a year.
CONCLUSION: Their product could not compete with the existing main contractor, due to a 20 year old collaboration agreement between a Canadian manufacturer and the Spanish government. The cost of changing supplier was to high to even be considered. Business Development saved the manufacturer thousands of Euros.
PHOTOVOLTAIC MODULE MANUFACTURER:
Solar module manufacturer targets Spanish Market:
Assigns a Developer, who studies the legal frame, opportunities, market structure and indentifies the key industry players.
For many weeks, gathers information and contacts and prepares the manufacturer for a series of meetings that will determine the feasibility of the project.
Meetings are positive and some sales are closed in the first visits.
CONCLUSION: Manufacturer gradually takes the lead of the commercial action from the Developer while creates a consolidated distribution network and assigns its own personnel to give continuity to the business.
Board of Directors approves the investment of 10 mill € in a new factory in a developing country, based on Market Reports from consultants and some weak local agreements. Regional Director decides on his own to hold the investment a few months and sends a Business Developer to the area.
After a few months, the BD person realizes that the resources should not be put in fabrication, since it would not give any competitive advantage to the company; but should be put in building its own distribution capabilities, non-existing in the country. Advises to stop investment, to increase production in an existing factory in a near country, and to focus efforts in sales and distribution. The new factory would have been a financial tragedy for the company.
This efforts saved the company many millions, and today it has a strong market position. BD person was given global responsibility for Business Development and his Director was promoted.