Content area
Full Text
Locknetics Security Engineering, the world's leading manufacturer of electromagnetic security hardware systems and components, was given the President's Award for Excellence in Exporting ("E"Award) in December 1997. "It is a great honor to receive this award, which is a testament to our success in the international marketplace," said Jim Scott, President of Locknetics.
Locknetics Security Engineering, an autonomous division of Harrow Products, Inc., of Grand Rapids, Mich., is the result of Harrow's acquisition and merger of two entrepreneurially developed businesses in the electronic security hardware industry, Locknetics in 1982, and Security Engineering in 1988. In 1988, Locknetics Security Engineering developed a strategic marketing plan with the goal of becoming the world's leading manufacturer of electronic security hardware. In 1988, Locknetics' total employment was 50 and export sales accounted for 4.2 percent of total revenue; in 1998, total employment numbers 140, and export sales account for approximately 20 percent of total revenue. Locknetics estimates that 10 percent of its workforce is directly attributed to export sales. "In short, as a direct result of our global marketing effort, we have created high-wage U.S. jobs while increasing our productivity, a trend which we will strive to continue in the future," says Jim Scott.
In 1988, Locknetics exported its products and accessories to only two countries, and now, 10 years later, the firm exports to 43 countries worldwide. Locknetics has firmly established distribution networks on all continents and is now looking to expand international sales to emerging markets in Asia, Eastern Europe, and Africa. Locknetics' export success is directly attributed to the company's ability to overcome the obstacles that confront a small firm when it is attempting to break into new markets and increase sales in other markets. In 1990, Locknetics developed an international marketing plan, which incorporated five challenges that would ultimately determine the extent of the company's export success. These challenges included market research, selecting export channels of distribution, obtaining foreign distribution, dealer (distributor) relations, and product design.
Market Research
The task of gathering useful market information and intelligence can be both difficult and time consuming. Locknetics sells directly to contract hardware dealers, locksmith wholesalers, and security/alarm distributors....