Case Study - Comfort Audio
Comfort Audio, Inc.
- a US medical device business
Case Study
Comfort Audio CEO Ragnar Åhgren visited the one, big annual US Audiologist
trade show in 2005, mostly to learn what products existed on the US market
in their category called ALDs, Assistive Listening Devices. Ragnar's conclusions
were positive; CA's products should be able to compete in the US. Then what?
With most Audiologists working at smaller private clinics, no Landsting to
act as a buying network, and in general, medical insurances not covering medical
devices, how could Comfort Audio approach the US market, and how and where
would consumers find out about, test and purchase their products? Ragnar turned
to esi Techtrans. Read further below, or see some of the
work produced.
Ads & Printed Materials
PR results
Case
study, continued
Ragnar turned to esi Techtrans. Did we have experience from the Hard of Hearing
(HoH) industry? No, but certainly of how to conduct a Market Mapping effort,
which delivers a broad brush picture of how the industry is functioning. A
discovery process where we learned about the major players, the dispensing
Audiologists, the wholesalers, distributors, re-sellers and retailers, the
media, (editorial, PR and ads) and professional and network organizations
representing the trade and consumers.
The Mapping study concluded that contrary to ProstaLund, for example, where we helped them build a direct sales force, Comfort Audio would best reach customers via multiple distributors serving Audiologists, retail stores and web shops catering to the HoH. Initially we approached some 15 distributors, and ended up selecting six distributors - never put all your eggs in one basket! - to initially represent our US products.
In-kubating™
the business, not people.
Then of course there were all the operating issues, from incorporating a US
company, registering with the FDA, getting trademarks registered, getting
pallets through customs and into our small warehouse. Obtaining business licenses
and setting up systems for invoicing, shipping, accounting and tax payments.
In-kubating is to us is a smart and cost saving approach to get all those pesky and time consuming "musts" required to start a business handled on a part time basis by esi's staff, already experienced in those matters. This frees up the time for our clients, visiting from Sweden every month or so, to focus only on selling and visiting with our marketing partners.
Year 2: Cranking
up the volume
During the first year Comfort Audio introduced two new products to the market,
and set up all aspects of operations and infrastructure, working with just
a handful of distributors. Important to put operating procedures and policies
in place and listen and react to the market. Making sure we were heading in
the right direction.
Push &
Pull
When you use your own sales force, your results come from how hard they work.
When you use distributors, which may have 1000 products in inventory, you
cannot depend on them to sell actively, you have to promote your products
and create a pull from the market. Ads and PR, and trade shows and events,
are our most important tools. Interestingly, the active promotion towards
consumers also works towards distributors; they become more interested in
stocking and promotion our products the more they notice we active. That explains
all our marketing activities above.
And how are
we doing?
On May 1, 2008 Comfort Audio announced that a new US HQ will be opened, and
staffed by the hereto Sweden based Director of Sales, Patrik Liljekvist. He
will continue to build out the sales organization. esi Techtrans will continue
to serve as CAs marketing department. Comfort Audio is well on its way towards
a US success!
Many thanks
esi Techtrans!
After about 2.5 years Comfort Audio moves out of our incubator, setting
up its own US office. Our relationship changes but continues. Here a nice
thank-you note:
|
To everyone at
esi Techtrans; It has really been a pleasure working together with you while digging up a treasure of useful information, finding distributors, marketing products, finding out the right price levels, meet important contacts and so on and so on. You may feel free to use us as a reference and you may use me as a personal reference. I am convinced that from our company in Chicago, Patrik would like to continue our cooperation especially regarding continued marketing of our products. Again, from all of us to all of you, thank you very much! Your friend, |
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