Wednesday, July 09, 2008

THE OVERVIEW
StoneWorks employs 25 people at its Hilton Head Island facility, where it produces stone countertops and flooring. StoneWorks' main customer groups are builders, interior designers, and architects. The company has served this market segment for the last 15 years. The industry is growing, with about three other major competitors in the surrounding geographic area.

THE CHALLENGE
When attending a Jasper County Economic Development meeting, StoneWorks' president and owner, John Baltzegar, heard a presentation by Pete DuBrule, SCMEP manufacturing specialist. Baltzegar had two key issues plaguing his business, so he decided at that time to enlist the help of SCMEP to solve those issues.

The first issue was a marketing one. Baltzegar needed to understand his market niche and clearly differentiate his company from the competition. StoneWorks was perceived to be "one of the crowd" of stone fabricators. There was little or no differentiation between StoneWorks and its primary competitors. Baltzegar also needed to develop new business and was trying to determine what other markets he should move into by opening a new facility and/or storefront.

Second, Baltzegar needed to develop a system of tight controls in the manufacturing operation, in order to create consistency in the process relative to scheduling and subsequent on-time delivery performance. StoneWorks' turnaround time was the same as its competitors; therefore, delivery time was not an effective differentiation point in closing sales deals.

THE SOLUTION
SCMEP marketing specialists performed a market analysis by calling current customers, former customers, and targeted potential customers. SCMEP determined that StoneWorks was not fully penetrating its current market. Many of its current customers were using multiple stone and tile suppliers for a single job, so StoneWorks was only getting a portion of the total available business. In some cases, as much as 50% of the work available on a job was going to StoneWorks' competitors. SCMEP recommended StoneWorks differentiate itself based on better customer service, i.e., enhanced dependability on delivery dates, shorter overall lead times, and increased communication throughout the sales process. In addition, SCMEP found the desired increase in new business could be achieved most effectively by further penetrating the current customer base and not by building new showrooms in additional cities.

THE IMPACT
As a result of StoneWorks' new focus on improving customer service, the company has experienced an increase in market share and overall customer satisfaction. Due to the cyclical nature of the business and the negative impacts of the current national and regional economic situations, it is difficult to calculate the precise financial impact of the assistance provided by SCMEP.

StoneWorks is now able to guarantee lead times and is 50% faster in delivery turnaround. Its delivery times have decreased from 14 days to 5 days. StoneWorks currently has the shortest lead time and best prices of all stone fabricators in the surrounding areas.

 

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