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Success Stories

Distribution

Company Profile
This is a northern New England storage and distribution company providing storage services for major paper companies, the state liquor distribution system, major tobacco companies, as well as local printers and manufacturers. Storage facilities were a mix of modern and older buildings. This company was one of three competitors servicing the local market.

The Situation
The company had stopped growing and increasing costs had affected profitability. The company did not have an active program to solicit new business and required new customers to fill the warehouse space and achieve break-even financial performance. Existing management had little experience in addressing these major issues.

The Alpha Program
Our initial activities involved a planning process with management to understand the business issues and identify specific problems that were contributing to the current situation. As part of this process, we also did a competitive analysis, a customer study by type and a pricing analysis. Our resulting program involved the following:

  • Creation of a sales program.
  • Hiring of a sales representative.
  • Relationship sales training program.
  • Creation of a computer database MIS to track revenues and profitability by customer type and product type.
  • Re-pricing of all services.
  • Primary research of the North Atlantic Provinces in French and English to measure market potential.
  • Marketing strategy and marketing program.

As part of this 18-month assignment, Alpha Associates assumed direct supervision of the sales representative and directly managed the sales program. Alpha Associates provided regular feedback to management and the Board of Directors.

Results
All elements of this program resulted in needed changes. With a proactive sales capability, the company quickly acquired new customers and provided better service to major existing customers. The company returned to steady growth and profitability and is a successful and profitable company today. Incidentally, the sales representative hired is now the general manager of the firm.