1. 1
Sales Strategy
The Revenue Road Map:
A sales strategy consists of a plan that positions DuroAir’s brand and service to gain a competitive
advantage. Our successful strategies will help sales focus on target market customers and communicate
with them, in relevant, meaningful ways. Sales need to know how their products or services can solve
customer problems.
Currently, DuroAir is completing and rejuvenating their branding strategy from a low cost, retractable
paintbooth (a tent) to “an industrial structure engineered to isolate contaminants…….”in order to attract
higher value sales. A successful sales strategy conveys this so that the sales force spends time targeting
the correct customers at the right time, for the right reason and focused on the right person,
department etc.
A sales strategy lays out the steps and methods necessary for customers in different stages. Potential
customers need communication that introduces the brand and product or service in ways that show
how it can solve their problems, processes requiring isolation, temperature and humidity controls etc.
If we accept that a high percent of sales will come from existing customers, current customers require
more personal communication about new features or benefits to keep them engaged. Promotions and
referral discounts work to motivate current customers to spend their money and to spread the word to
others for referral leads.**
*Creating an effective sales strategy requires market knowledge, awareness of competitor activities,
awareness of current trends and detailed business analysis. Please see Road Map to Revenues.
We can outline our compelling or unique value proposition, “Flexible end to end air quality solutions
that maximizes productivity” and ensure that it tests well in various industry segments inorder to target
customers, competition, most common objections, product features and benefits, and so forth.
*The Value Proposition describes the bundle of products and services that create value for a specific
Customer Segment. The Value Proposition is the reason why customers turn to one company over
another. It solves a customer problem or satisfies a customer need. Each Value Proposition consists of a
selected bundle of products and/or services that caters to the requirements of a specific Customer
Segment.
In this sense, the Value Proposition is an aggregation, or bundle of benefits that a company offers
customers. Some Value Propositions may be innovative and represent a new or disruptive offer. Others
may be similar to existing market offers, but with added features and attributes.
2. 2
Market segmentation reveals the market-segment opportunities facing us. DuroAir has to evaluate the
various segments and decide how many and which ones to serve. We can look at the tools available for
segmentation evaluation and selection:
Segment Size and Growth
Segment growth is a critical criteria when identifying a target market however, competitors will/may
enter a growing segment and depress profitability if we don’t have reasonable barriers to entry.
Selective Specialization
DuroAir can select a number of segments, each of which is objectively attractive and matches the firm’
objectives and resources. There may be little or no synergy between the segments, but each segment
promises to be accretive. This strategy of multi-segment coverage has the advantage over a single
segment strategy of diversifying our risk. If one segment becomes unattractive, we can continue to earn
revenue in other segments.
Customer groups represent separate segments if:
• Their needs require and justify a distinct offer
• They are reached through different Distribution Channels
• They require different types of relationships
• They have substantially different profitabilities
• They are willing to pay for different aspects of the offer
We should look back at your best customers and identify the characteristics that make them profitable
and enjoyable to work with. We can update our ideal customer as necessary to reflect the kinds of
customers who will help us reach your growth goals.
3. 3
Segment Structural Attractiveness**
We have to appraise the impact on long-run profitability of five groups I’ve identified here.
1/ Industry competitors
A segment is deemed unattractive if it already contains numerous, strong or aggressive competitors. It is
worse if the segment is stable or declining, if capacity is added, fixed costs are high and if competitors
have high stakes in staying in the segment. This leads to price wars, new product introductions and
makes it expensive to compete.
2/Threat of potential entrants
A segment is unattractive if there are low barriers to entry and new entrants bring substantial resources.
The most attractive segment from the viewpoint of profits is one in which entry barriers are high and
exiting barriers are low. Few new firms can enter and poor performing can exit easily. The worst case is
when entry barriers are low and exit barriers are high: here firms enter during good times but find it
hard to exit during bad times resulting in chronic overcapacity and depressed earning for all.
3/Threat of substitutes
Substitutes place a limit on potential prices and profits that can be earned in a segment. If technology
advances or competition increases in these substitute industries, prices and profits in the segment are
likely to fall.
4/Threat of growing bargaining powers of buyers
A segment is unattractive if buyers possess strong or increasing bargaining powers and try and force
prices down, demand more quality or services and set competitors against one another, all at the
expense of profits. A good strategy consists of developing superior offers that buyers cannot refuse!
5/ Threat of growing bargaining power among suppliers
A segment is unattractive if the companies’ suppliers are able to raise prices or reduce quality. They are
powerful when concentrated, organized, have few substitutes and when switching costs are high. The
best defense is to build good relations with suppliers and have multiple supply choices.
**Marketing Management: P. Kotler. R.E. Turner
4. 4
The Business Development Process
*Business Model Canvas Explained
http://www.youtube.com/watch?v=QoAOzMTLP5s
*The business development process is used to discover, test and validate following our business
assumptions:
A specific product(s) solves a known problem for an identifiable group of users (Customer
Discovery)
The market is large enough that a viable business might be built (Customer Validation)
The business is scalable through a repeatable sales and marketing roadmap. DuroAir service
center: DuroAir does not have “CLIENTS” we have “CUSTOMERS”. We need to change that with
a thoughtful, planned, strategic service organization that generates regular service revenues for
enclosures, filters, repairs and recommendations.(Company Creation)
Company departments and operational processes are created to support scale (Company
Building)
5. 5
Define Our Product(s) and Market Segments (identifiable Group)
Wind Power and Energy Segment
• Let’s use Wind Energy Markets ( as discussed)
• It meets the segment structure attractiveness for DuroAir( high barrier to entry-low cost to exit)
• The industry will have many “influencers” to direct product detail and information: consultants,
engineers.
• The industry is well funded.
• Our experience indicates we have a unique solution to a plant environment (EHS)problem
• There are known associations ( to be vetted) where customers/contacts/references can be
approached
• The industry has substantial repair/maintenance component for repeat sales and service revenues.
Tactical Strategies
• Build a file of all industry company names and market intelligence.
• Build a linked-In strategy to uncover individual names and call to introduce
• Vet and attend industry conferences and events to increase DuroAir’s industry I.Q. and
knowledge that could lead to further product offers aside from our current concept.
• Attend (vet) industry conferences and events to grow the company(s) contact list and
names.
• Uncover needs, issues, timing and any other facts to determine if a face to face. i.e. Blade
Dynamics
6. 6
Consulting Engineers in Canada and U.S.A.
• I suggest this might lead us into some high level government sales
• It meets the segment structure attractiveness for DuroAir ( high barrier to entry-low cost to exit) if
we don’t focus exclusively on the coating industry: clean room testing
• The industry will have many “influencers” to direct product detail and information: consultants,
engineers.
• The industry is well funded.
• Our experience indicates we have a unique solution to a plant environments for EHS consultants
• There are known associations ( to be vetted) where customers/contacts/references can be
approached
• The industry client have substantial repair/maintenance component for repeat sales and service
revenues.
Tactical Strategies
• Build a file of all industry company names and market intelligencers.
• Build a linked-In strategy to uncover individual names and call to introduce DuroAir
• Vet and attend industry conferences and events to increase DuroAir’s industry I.Q. and
knowledge that could lead to further product offers aside from our current concept.
• Attend (vet) industry conferences and events to grow the company(s) contact list and
names.
• Uncover needs, issues, timing and any other facts to determine if a face to face. i.e.
SNC Lavalin, J.L. Richards, etc
BDC EHS Consulting
Bob Beale bob.beale@ibigroup.com
IBI Group 416 873 4899
Sherry Cherian Shery.Cherian@hdrinc.com
HDR Inc. 647 777 4953 Senior Architect
Robert Hainz Robert.Hainz@snclavalin.com
SNC Lavalin 519 393 8000 ext. 54318
7. 7
Tactical Strategy:
Goals:
- Week 1 - Build a file of all industry company names and market intelligence.
Goal to have 10 companies with locations listed.
- Week 2 - Build a linked-In strategy to uncover individual names and call to introduce.
Goal to have a list of 25 names. Call all 25 people.
- Week 3 – Add 25 names to the list. Call all 50. Each week drop off anyone you have reached
and anyone you have called 6 times. Add names to maintain a list of 50.
- Week 4 – Add 25 names to the list. Call all 75. Each week drop off anyone you have reached
and anyone you have called 6 times. Add names to maintain a list of 75.
- Week 5 – Add 25 names to the list. Call all 100. Each week drop off anyone you have reached
and anyone you have called 6 times. Add names to maintain a list of 100.
- Week 6 – MILESTONE 1: Review list of 100 with team and update on results.
- Week 7 - Vet and attend industry conferences and events to increase DuroAir’s industry I.Q. and
knowledge that could lead to further product offers aside from our current concept. (I will have
an answer on Wind Expo next week).
- Week 8 – 9 – Book face to face meeting with customer XYZ
8. 8
Addendum:
From a BDC Article: Improving the quality of the sales process
Improving the quality of the sales process should improve the overall health of the company.
Generally, the process, whether for product or services, involves three separate but related
departments that form a sales pipeline.
This sales pipeline can be expressed as a linear flowing sequencing system containing a
feedback loop, from marketing to sales to customer support and back to marketing.
• In the sales pipeline, the marketing department determines and creates sales opportunities,
generates sales leads and maintains prospect flow, all of which feed into the pipeline.
• The sales force does the actual selling, moving the flow along the pipeline.
• And customer support, far from simply dealing with complaints, implements ongoing customer
relationship management and gathers market intelligence.
Too often, one group–sales–attempts to perform all three chores. These dysfunctional
situations work for a while when a company is first starting out, but as the company grows,
inevitably problems show up, and the system has to be changed completely. Obviously, it
would be smarter to get it right the first time.
*Steve Blank; Lean Launch Pad: Blank currently teaches at Stanford, the University of California Berkeley
Haas School of Business, New York University and Columbia