An owner-managed German mechanical engineering company wanted to expand the international sales of its production machines for respiratory masks (FFP2/KN95/N95) during the coronavirus pandemic. As "Global Sales Director", the interim manager was tasked with developing the new business area, preparing for internationalization, building a sales network and, in particular, developing and implementing a market entry strategy for Japan.
Competitor analysis and ROI assessment prove prospects of success
At the beginning of the mandate, it was already clear to the interim manager that Chinese companies dominated the market for respiratory mask machines. Chinese machines were quickly available and were priced far below those of the German company. In order to better demonstrate the strengths and weaknesses of the competition, the interim manager prepared a detailed competitive analysis as well as an ROI calculation to substantiate the return on investment. This showed that the German manufacturer's machines offered a much higher production efficiency and therefore a better return on investment despite the higher purchase price.
APAC, Asia and emerging markets identified as core regions for market entry
In the next step, the interim manager identified the countries where there were good prospects for a successful market entry. He found market opportunities and potential customers primarily in the Asia-Pacific region (APAC region), South Asia, the GCC countries (countries of the Arabian Peninsula) and Africa. From this pool, he selected Japan, India, South Africa and Saudi Arabia. Contrary to the original plan, the interim manager also focused on emerging countries that were promoting mask production with state funds in the wake of the coronavirus pandemic.
Diversification through 4 new business models
In order to position the client in a more differentiated and efficient way, the interim manager introduced an "OEM business", among other things. In this model, the German company produces respiratory masks on behalf of customers and according to their specifications.
In addition, the interim manager made it possible for the mask production plant to be offered not only as a whole. This enabled the sale of "modules" and machine segments, for example for fabrication, shrink-wrapping or packaging.
The interim manager also developed models for licensing or selling "technology transfer". This enables companies to acquire the process and production technology as well as the technical expertise. The model also includes taking over production on site until a stable transition is guaranteed. It turned out that this is particularly attractive for companies that want to enter the mask business for the first time.
The offer of unbureaucratic and tailor-made "financing" for the production machine was also particularly attractive for customers in emerging markets.
The extended range of services increased the client's competitiveness.
Basics for marketing and sales defined and created
Once the business model had been agreed with the management, the interim manager developed the basics for marketing and sales. He defined the key content of the sales and marketing messages and ensured the timely implementation of brochures, videos and website content. The competitive analysis prepared by the interim manager with the strengths/weaknesses analysis and the consistent development of the unique selling proposition (USP) now serve the client as the basis for further international marketing.
Market entry Japan
In the next step, the interim manager developed country-specific market entry strategies for the selected target markets. The previous market and competition analyses served as a benchmark. Contacts with authorities, associations, relevant Covid-19 contact points and opinion leaders from the industry also provided direction.
The very demanding Japanese market of Japan was a particular challenge. The interim manager ensured that the client was well prepared internally for expansion into Japan, that the product could fill a niche in Japan, that the machine was accepted in the market and that it offered the customer added value. The goal is quality leadership.
The interim manager was able to bridge the cultural differences between Germany and Japan very well. In order to meet customer expectations in terms of service, he involved a local cooperation partner and thus ensured the necessary local presence.
He was able to convince the customer that the performance of the entire value chain - from packaging to assembly - is guaranteed. The interim manager successfully implemented the market entry plan he had developed for Japan and was ultimately able to acquire a Japanese group as a customer.
Mandate successfully completed after 12 months with all milestones achieved
After a period of 12 months, all milestone tasks were successfully implemented on schedule. The sales targets were formulated and market entry strategies developed. The internal business processes proposed by the interim manager for the international division were adopted. In order to strengthen competitiveness, the interim manager expanded the client's business model with 4 new service packages. He negotiated and drafted contracts for country representatives. He successfully implemented the market entry he had developed for Japan.
