Precision Feedscrews, Inc.

Precision Feedscrews, Inc. Marketing

Overview
The Industry

164 companies, 18,141 employees, $3 billion in annual revenue. US in number 2, after Japan. (Precision Turned Product Manufacturing)

US production of fabricated metal products dropped more than 20 percent during the recession of the late 2000s. A greater reliance on low-cost overseas manufacture has cut the market for US metal products. (Fabricated Metal Product Manufacturing: Industry Description)

The Product

Screw machines products are defined by the process of manufacturing, not by a specific product. “Products in this industry consist of a wide variety of unassembled parts and are usually manufactured on a job or order basis.” (Screw Machine Products: Encyclopedia of American Industries).

Because of the special manufacturing processes involved for individual parts, most companies make a limited range of products. (Fabricated Metal Product Manufacturing: Industry Description) Specifically, Precision Feedscrews, Inc. manufacturing feedscrews for plastics production.

The Competitive Atmosphere

“The industry is dominated by small companies employing fewer than 50 workers, most of whom are highly skilled machinists. Many of the shops are privately owned, and most are located near the industries that buy their parts. In addition, many large companies that use screw machine products manufacture those products in-house.” (Screw Machine Products: Encyclopedia of American Industries)

Major companies include Ball Corporation, Flowserve, Mueller Industries, Snap-On, and The Timken Company (all headquartered in the US), as well as Jiangsu Guotai International (China), Schaeffler Technologies (Germany), and Toyo Seikan Kaisha (Japan). (Fabricated Metal Product Manufacturing: Industry Description)

The Focus

This marketing pitch will be focusing on the feedscrews manufacturing and repair offered by PFI (Precision Feed Screws).

What are the three major trends happening in marketing in this particular business and the specific product or service in particular?
  • Production of industrial equipment can fluctuate 10 to 20 percent in a year.
  • Many metal products customers have moved production abroad to take advantage of lower labor costs and position themselves to sell products to a growing international market. Unless their US suppliers move with them, these customers buy from local manufacturers, especially if they use just-in-time inventory management.
  • Manufacturers that can invest in modern fabricating technology will be able to increase market share.(Fabricated Metal Product Manufacturing: Trends and Opportunities)
Product

Screw Machine Products, Conveyors/Equipment (Precision Feedscrews Inc.) predominantly for plastics manufacturing. (McAnallen) This includes news screws, extruder and injection barrels, valves and end caps, as well as services such as standard screw rebuilding, high wear solutions, special repair, standard and emergency service, screw design, screw re-cuts and industrial hard chrome (Precision Feed Screws).

Price

Sales often depend on a company having the design, engineering, and manufacturing capabilities to make the product to specification and on time. (Fabricated Metal Product Manufacturing: Industry Description)

Place

Physical plant is in New Castle, Pennsylvania (Precision Feedscrews Incorporated)but company ships products internationally (McAnallen).

Promotion

Business to business promotions, mostly with direct sales, public relations and improved internet and social media presence for lead generation and branding (B2B marketing priorities in the U.S. 2011).

What direction would you recommend based on this research?

Because PFI cannot move overseas to manufacture for outsourced companies or invest in emerging technology, my recommendation is for the firm to focus their marketing on their services, such as standard screw rebuilding, standard and emergency service, screw design and screw re-cuts, which they can provide more locally and target more specifically. (Precision Feed Screws)

Segmentation

1.  Existing or former clients and suppliers

2.  Plastics manufactures

Targeting

Potential clients in plastics manufacturing to open new accounts in screw manufacturing and make current former and potential clients aware of services

Positioning

1. Rational: Position PFI as a company that has a commitment to a quality product and the experience to meet any need, from screw manufacture to repair.

2. Emotional: In an industry moving more and more overseas, PFI is an American-owned, family-run company.

Strategy
Target Market

1. Geographic

Precision Feedscrews, Inc. (PFI) serves and is affected by a global market, but the manufacturing plant is located in New Castle, Pennsylvania and they primarily target United States plastics manufacturers.

2. Demographic

PFI’s buyers are typically older, 40-60 years old, upper middle income, educated and predominately male.

3. Psychographic

They are experienced buyers, working for plastics manufactures. Target also includes potential clients in plastics manufacturing.

4. Behavioral

They buyers are typically aggressive negotiators, and the sales process lasts longer than typical because it’s business to business selling.

Product Value Proposition

Our strategy will be to position PFI as a company that has a commitment to a quality product at a competitive price and the experience to need any need, from screw manufacture to repair.

In addition an industry moving more and more overseas, PFI is an American-owned, family-run company.

SWOT Analysis

1. Strengths

PFI is a small company, and is family owned and operated. It also offers unique services like screw rebuilding and repair, which helps it stand out against competition, especially abroad.

2. Weaknesses

We are unable to competitively price products compared to overseas manufacturing. It is also difficult to keep up with new technology in plastics manufacturing as a small company. There is a lack of skilled labor is our region of the country, so training costs and employee turnover is an issue for our company.

3. Opportunities

PFI offers services such as screw rebuilding, design and recuts, which makes them attractive to domestic manufacturing plants with a need for quick and local services.

4. Threats

The industry experiences a high degree of market fluctuation, the industry is moving more and more abroad and emerging technology in plastics manufacturing which may make our products and services gradually become obsolete.

Strategic Direction

1. Product

Our strategy and approach will market services heavily, especially screw repair. The quick turnaround on repairs is a unique selling point that will make us stand out in the market.

2. Price

PFI uses quote-based pricing, but prices should fluctuate with the market and vary depending on the difficultly and time restraints of the order. There should also be a system to differentiate between normal orders and our services. We won’t necessarily market our prices, because we can’t price competitively, but we can emphasize our product quality.

3. Place

Most sales are made over the phone, but direct selling online and in person should be incorporated into the sales model, as we are marketing the personable, family-owned image. We should also offer clients the opportunity to come into the plant for tours and to answer their questions or see progress on orders or repairs.

4. Promotions

We should use direct selling and a more proactive public relations campaign, including going to trade shows, consistent website updates and improved employee and client communications. There should also be a larger focus on social media presence for lead generation and branding.

Bibliography

McAnallen, M. (n.d.). Owner and Floor Manager. (J. McAnallen, Interviewer)

Precision Feed Screws. (n.d.). Retrieved from http://precisionfeedscrews.com/

B2B marketing priorities in the U.S. 2011. (n.d.). Retrieved from Statista: http://www.statista.com/statistics/240820/b2b-marketing-priorities-in-the-us/

Fabricated Metal Product Manufacturing: Industry Description. (n.d.). Retrieved from http://subscriber.hoovers.com/H/industry360/overview.html?industryId=1401.

Fabricated Metal Product Manufacturing: Trends and Opportunities. (n.d.). Retrieved from Hoovers: http://subscriber.hoovers.com/H/industry360/trendsAndOpportunities.html?industryId=1401

Global Manufacturing Industry. (n.d.). Retrieved from Companies and Markets: http://www.companiesandmarkets.com/MarketInsight/Industrial/Global-Manufacturing-Industry/NI8689

http://web.a.ebscohost.com/bsi/detail/detail?sid=0c56fd41-2159-45e3-8880-678daba59c43%40sessionmgr4004&vid=2&hid=4209&bdata=JnNpdGU9YnNpLWxpdmU%3d#db=bth&authdb=cix&AN=2874116. (n.d.). Retrieved from Precision Feedscrews Inc.

McAnallen, M. (n.d.). Owner and Floor Manager. (J. McAnallen, Interviewer)

Precision Feed Screws. (n.d.). Retrieved from http://precisionfeedscrews.com/

Precision Feedscrews Inc. (n.d.). Retrieved from http://web.a.ebscohost.com/bsi/detail/detail?sid=0c56fd41-2159-45e3-8880-678daba59c43%40sessionmgr4004&vid=2&hid=4209&bdata=JnNpdGU9YnNpLWxpdmU%3d#db=bth&authdb=cix&AN=2874116

Precision Feedscrews Incorporated. (n.d.). Retrieved from Company Profiles: http://web.b.ebscohost.com/bsi/detail/detail?sid=45bc4ca1-0026-421f-8f14-fd02635506fd%40sessionmgr198&vid=2&hid=106&bdata=JnNpdGU9YnNpLWxpdmU%3d#db=bth&authdb=cix&AN=2874116

Precision Turned Product Manufacturing. (n.d.). Retrieved from Gale Business Insights: Global: http://bi.galegroup.com/global/industry/332721?u=pit59917

Screw Machine Products: Encyclopedia of American Industries. (n.d.). Retrieved from Gale Business Insights: Global: http://bi.galegroup.com/global/article/GALE|RN2501400296/12d7c1fd6a6a99689a7bab1d8ca5f1e0?u=pit59917

Marketing Presentation

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