SilcoTek® offers high performance corrosion resistant, inert coatings to a diverse range of customers. From the researcher who needs a specific surface for their test, to large corporate customers offering OEM products. For larger customers a product line extension featuring our coatings can be a profitable venture.
Often our Sales and Marketing team have a view from both sides of the sales transaction. We'll get a call from an end user frustrated by long delivery or poor service from an obstinate OEM manufacturer who won't offer stock products or improved delivery. Often those customers elect to send in products to us for coating without the OEM interface to reduce the lead time. We'll shake our head at the lost opportunity in customer satisfaction and added profits OEM manufacturers are missing in failing to offer our coatings as part of their standard product offerings.
At SilcoTek®, we view our coatings as a win-win for both the customer and manufacturer. The customer gets the improved product performance they want, and the manufacturer gets a satisfied customer and an enhanced product with minimal investment. So why don't more OEM manufacturers take advantage of an improved product offering? It's not just a make or buy decision here, the decision to extend of brand or offering can can be complex and should not be taken lightly. The product universe is littered with bad brand extension decisions. Fear aside, here are some tips and guidelines for when to integrate our coatings as part of a product line extension.
Number one rule of a new product or brand extension: The product must fill a customer need, not be initiated at the convenience of the manufacturer's internal metrics. Manufacturers must first and foremost focus on customer satisfaction, not short term internal objectives.
Learn how our coatings improve OEM customer satisfaction.
The negative side of brand extensions.
Done incorrectly, a brand extension can have many down sides.
Significant risks should be factored into whether to initiate a brand extension that go beyond a simple cost calculation.
Consider the following:
OEM manufacturers consider several factors when including SilcoTek in their product offering including:
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With all the potential negative issues surrounding a new offering, it's no wonder some OEM companies are hesitant to incorporate a new product into their product line. But here's the hitch, without new, innovative products and by not lending an ear to customer needs; companies run the greater risk of losing out on innovation and product initiative. A slow death begins!
To grow your customer base and assure increasing revenue, you've got to identify and fill customer needs. So here are some guidelines for implementing a new product or brand extension:
Benefit of a successful brand extension:
How do companies benefit from a new product or brand extension?
Hundreds of SilcoTek customers have improved their product quality, satisfied their customer needs and increased product sales by incorporating SilcoTek coatings into their product mix. Here are a few ways customers have adapted their products to extend their brand and satisfy a customer need:
SilcoTek's marketing and sales team know how our products can fit into a variety of product offerings. If you're interested in understanding how our products can improve your brand and expand your profits, contact us for a consultation.