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Orchid International Marketing Strategy 1

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Orchid International Marketing Strategy 1 Marketing Strategy 2005 Orchid International Marketing Strategy 1 PURPOSE & MISSION Orchid International has traditionally operated with a short-run business and marketing strategy, taking advantage of possible opportunities and handling potential threats as they were encountered. The absence of a long range business strategy means Orchid International has had to be more reactive in terms of acquisitions and sales, product and service offerings, and customer acquisition and retention activities for example. Still, Orchid International has achieved significant success since its founding in September 1988, reaching the $150 million mark in annual sales in 2004. Much of the credit must go to the entrepreneurial spirit, tenacity and salesmanship of the executive team, CEO Grant Bibby and President Steve Gruver. The executive team recognizes the importance of a detailed, long range business plan and has started the process of collecting data and formulating this information in an effort to support continued growth and to maximize the efficiency of the company. In doing so, Orchid International can and should be better able to proactively manage change to reach clearly defined expectations, goals and objectives. A detailed marketing strategy is a vital component of an overall business plan. The information contained in this strategy, in conjunction with information from other key areas, should help lead to the development of a solid, long range business plan for establishing Orchid International as a leader in the metal stampings and assembly industry in North America. This marketing strategy will help identify and then outline how to better communicate the value of Orchid International to its targeted markets through a comprehensive and well-defined program of marketing and communications activities. Of utmost importance for 2005-2006 is working to build Orchid International’s brand identity and generate awareness in select targeted industries including automotive, electric motor and transformer, lawn & garden, and appliance. Building awareness will remain a priority beyond 2006; however, by then Orchid International’s marketing efforts should begin to establish the “leadership” of the company within the metal stamping and assembly industry by honing its message. Orchid International Marketing Strategy 2 As we enter into the second half of 2005, numerous tools will be developed and introduced, including: new marketing literature, an updated web site (Internet with Intranet capabilities), a modern trade show booth and promotional items, a company- wide consistency and style manual, quarterly company e-newsletter, targeted e-mail releases to consumers, public relations initiatives and online advertising. Mission & Value Proposition To guide the overall marketing strategy, and ultimately the business strategy for the company, the following Vision/Mission/Values statement and value proposition were developed. These statements define who we are as a company and why we are in business. These statements hold meaning now and project where we intend to go in the future. By holding ourselves accountable company-wide to these statements, we can ensure that we are staying true to our business strategy and utilize them as gauges in our progression toward our company goals (to be defined in the business plan). These statements, once validated by the executive team, should be seen as components of the long range vision for Orchid International, and should not be dramatically altered year after year. The Orchid International mission statement and value proposition are specific, measurable, attainable, relevant and trackable. All communications coming from the Marketing and Communications Department should convey these messages to both internal and external audiences. The following assumptions were made in the development of the proposed Vision/Mission/Values and value proposition statements: • Orchid International is keenly interested in continued growth (expansion of facilities/products/services, acquisitions, investments) as a provider of metal and laminations stampings and assembly products and services in North America. As the goals and objectives component of the business strategy are yet to be set, a 5-year (2010) sales volume goal of $500 million was considered attainable and reasonable based on Chris Strong’s financial analysis for the business plan. • Orchid International is aware that current quality and delivery issues have a negative impact on additional sales opportunities to current customers, and these issues can eventually sabotage future sales efforts to prospective customers, Orchid International Marketing Strategy 3 damage the company’s brand, and jeopardizes our efforts to achieve steady growth. • Orchid International is committed to making quality, on-time delivery and customer service the focus of continuous improvement efforts and the responsibility of every employee regardless of position. We know that the company’s reputation for reliability and quality is either supported or refuted by every part we manufacture and every communication we have with our customers (see Public Relations, Internal section, The Strongest Link Initiative, page 33). Vision: To become the leading North American supplier of high-volume metal and laminations stampings and assembly products and services utilized by manufacturers in the automotive, appliance, electric motor and transformer, and lawn & garden industries. Mission: The Orchid International team is comprised of highly-skilled personnel dedicated to providing our manufacturing partners with metal and laminations stampings and assembly products and services that add value throughout their supply chains. Orchid International will strive to develop fulfilling relationships with our manufacturing partners by adhering to and building upon our core competencies in high-volume metal and laminations stampings and assembly and passing along the fruits of our expertise in the form of value-added engineering and manufacturing efficiencies. Values: • The Orchid International team understands the importance placed on delivering high quality products and services in a cost- and time-sensitive global economy. • The Orchid International team understands that any chain is only as strong as its weakest link. We take seriously our individual and team responsibilities for continuous improvement to ensure Orchid International becomes the strongest link in our manufacturing partners’ s upply chains. Orchid International Marketing Strategy 4 • The Orchid International team is made up of a diverse group of individuals who share mutual respect for one another and value the contributions and talents each member brings to the team. To that end, the health, safety and integrity of the Orchid International team, our manufacturing partners, and the communities in which we live and work will never be compromised. Value Proposition: Leveraging our core competencies in high-volume metal forming production, tooling, design engineering and quality control, Orchid International provides metal and laminations stampings and assembly solutions to manufacturers that are: experiencing internal issues that hamper production; desiring to outsource stamping and/or assembly processes that fall outside their core competencies; and/or seeking to establish a competitively-priced supplier relationship for a new or existing product line. Orchid International Marketing Strategy 5 SITUATIONAL ANALYSIS Since 1988, Orchid International has grown into a $150 million supplier of metal and laminations stamping and assembly to the automotive, lawn & garden, electric motor and transformer, appliance and other industries. Initially a press equipment supplier, Orchid International steadily developed core competencies in stamping and assembly resulting in the decision to sell the equipment side of the company – a business noted for its cyclical feast or famine nature. Today, the company employs over 500 and operates five metal and laminations stampings and assembly facilities in the following locations: Gordonsville, Tennessee; Mount Juliet, Tennessee; Monroe, Wisconsin; McAllen, Texas; and Markham, Ontario. Orchid International is a financially-sound company competing with literally thousands of metal stamping and assembly companies throughout North America, ranging in size and capabilities from small job shops capable of prototyping and small to medium volume runs on smaller presses to large, multi-nationals with advanced tool and die making and press capabilities suitable for supplying prototyping and small runs to large volume runs for numerous customers. Competition for automotive tier work is intense, as it is in each industry in which Orchid International competes for high volume runs. A strong case can be made that the stamping and assembly industry is characterized by not only a competitor’s quality and delivery capabilities but by their geographic location. Stampers in close proximity to areas with a large manufacturing base tend to be more competitive in that geographic area. There are a host of factors to support this conclusion, including: proximity gives an edge to stamping suppliers having to manage their production and delivery of parts to facilitate the just-in-time inventory levels sought by many manufacturing customers today; and, when quality and delivery are equal, the work is awarded to the lowest bidder – freight costs of raw materials and the finished parts can make it difficult for distant competitors. A trend in the
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