05/ 29/ 2002
by Vicki Gerson
It’s not easy for small companies to successfully introduce new products. Smaller budgets and fewer employees translate to creative thinking and ingenuity. One key factor that determines whether a company hits the mark or not is targeting the right clients and discovering what they need.
In business for over 65 years, family-owned H. Field and Sons, Inc., with less than 20 employees, is a corrugated packaging company in Chicago, Ill.
"We are a strong box supplier, but in order to grow, it’s important to develop niche markets and become specialists," says Vice President/Sales Chuck Field, who joins networking groups as a way of meeting people who can lead him to potential clients.
Successful products are introduced when you solve an industry’s problem, says Field. When the formal-wear industry wasn’t happy with the method used to move garments, Field’s company introduced the Smooth Suitor, a carton for shipping garments on hangers.
Field also believes that one of the best methods to get business is to design your own mousetrap. His company, at http://www.fieldbox.com, introduced "Creative Impact Packaging" to give potential buyers a firsthand account of how imaginative, customized packaging can be used in product promotion. To develop the theme, "Wake Up Your Creative Senses," they designed a corrugated package that held one pound of flavored ground coffee and an imprinted coffee mug.
Key ad agencies and creative houses received the packages and a follow-up phone call. The campaign cost 10 percent of Field and Sons’ budget and opened doors, with the firm invited to make presentations to individuals and departments.
Whether it’s boxes or signage, introducing new products can be key to your company’s growth. Chicago-based Kane Graphical Corporation, founded in 1979, manufactures durable signage and merchandising. Well-known in the financial marketplace, the company has been concentrating on broadening its client base.
The family-owned business, with 40 employees, uses a multipronged approach to introduce new products (see box at left). Kane says it can cost between $50,000 to $150,000 to introduce new products.
"No matter how much research we do, smaller businesses have to go with a gut feeling about entering a new market," says Kane. "And always remember, timeliness is everything."
Kane Graphical Corp. uses the following methods to introduce new products:
- sends press releases to trade publications
- promotes the products on www.kanegraphical.com
- participates in industry trade shows
- joins trade associations whose members are potential users and sends members mail or e-mail about the products
- lists the products in specialty catalogs
- hires independent sales reps to sell the products.
This article originally appeared in the June/July issue of MyBUSINESS magazine.
