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A pioneer in the confocal arena had chosen a local East Coast microscope dealer to represent their very sophisticated technology. The fit was not successful: the dealership was focused on their local territory rather than the national scope required for this product's success. They sold 1/2 of a system in 18 months.
The parent company decided to open an official US office, hiring Ms. Foster as Technical Marketing Manager, and a long-time colleague as VP of Sales. Both knew the market as well as microscopy, and launched a highly integrated sales and marketing program, with strong technical support. Operating on a shoe-string, they resorted to small, strategically placed ads coupled with an extensive direct mail, editorial, and tradeshow campaign and a no-cost, commission-only distribution channel.
Outcome:
- Within 8 months, ranked by Frost & Sullivan as a "strong second in an aggressive, international field of 5"
- 4 systems sold in Y1 ($250K in revenue)
- $2M sold in Y2
- Projected $3M - $5M in Y3
At the beginning of Y3 the company was acquired for the second time in two years. The new owners had an in-house sales team, but miscalculated their experience and their reach. Also, their marketing group was experienced in other analytical technologies, but not in microscopy. The result: an unsuccessful corporate transition that caused the product to abruptly disappear from the buyers' radar screens. The new owners struggled back to $2M in Y5, then lost the market entirely.
ROI: Conservative estimate - payback within approximately 6 months
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