Pacific Aerospace’s market development and design activities became a lot more focused when Better by Design helped the company identify a new sales niche in a high growth market.
For more than half a century, Hamilton based Pacific Aerospace
achieved an enviable international reputation as a manufacturer of
light utility aircraft suitable for aerial top-dressing, sky diving
and air force training.
But the company hit a turbulent patch in 2006. New shareholders,
including CEO Damian Camp, were brought in to get the company's
order books, supplier relationships and finances back into shape.
That took 12 months and by then Camp knew the company needed a
stronger strategy if it was going to survive and thrive in an
internationally competitive market.
Design Integration Programme
He was advised, through a contact at New Zealand Trade and
Enterprise, to have a closer look at Better by Design's Design
Integration Programme.
"Rather than just me banging on, I wanted to have some external
support and endorsement while we developed our new business
strategy. Some of our people had been working here for many years
and had never been involved in planning the company's strategy,"
said Camp.
Because it had just been through a major development and
certification programme, the Design 360 assessment showed the
company had a bias to view everything from a technical perspective.
It needed to approach design more from a consumer point of view and
focus its market strategy towards larger more sustainable
markets.
Focusing on customer benefits
Even the company's 11 strong design team tended to focus more on
the technical excellence of aircraft, rather than the customer
benefits.
The company's latest product, described in glowing terms by an
Australian aviation magazine as "the thoroughbred Kiwi workhorse,"
is the P-750 XSTOL (the STOL stands for short take-off and landing
capability, and the X, introduced by Pacific Aerospace to denote
its superiority to other STOL aircraft types, stands for extreme).
Flying above the competition, the P-750 is the only fixed wing
aircraft in the world that qualifies as XSTOL and is the only of
its type that can take off and land in less than 800 feet carrying
a load greater than its own weight.
Pacific Aerospace initially designed and had the aircraft
certified for the North American and European skydiving market and,
while they had intentions of broadening the use of the aircraft
into freight and passenger (utility) operations later, as is often
the case with new products that a company is desperate to bring to
market, its sales strategy was scattergun.
Researching new markets
Better by Design helped build a consensus amongst the management
team of where it should be focusing its efforts, reinforcing there
was more sales potential in the utility area and emphasising that
the company should research other market territories such as the
Equatorial Band, which was less mature than the North American and
European markets with good growth potential and a niche that
Pacific Aerospace could 'own'.
The P-750 had excellent utility qualties that particularly
suited this market. "It is hotter around the Equator and the air is
thinner, and we can perform in high and hot conditions without
compromising payloads."
As Pacific Aerospace began selling its P-750 XSTOLs into places
like Africa and Papua New Guinea, they started receiving stories
from operators highlighting the aircraft's exceptional performance
in these hot and rugged environments.
One such story came from the United Nations World Food Program
operations in Africa, which set a benchmark in short field
performance.
Defining strengths
These stories helped reinforce Better by Design's suggestion
that the Equatorial Band was the ideal market for its products,
with the majority of new sales of the P-750 in Equatorial
countries. The company is now concentrating on Central and South
America, Southeast Asia and India as new markets to enter. Learning
to articulate and emphasise the strengths of its products in a way
that is relevant to customers has been another key outcome of the
programme.
"We were doing things better than everyone else, but weren't
conveying that. Better by Design helped us define who we are and
what we're good at, which is now reflected in everything we
do."
The Better by Design programme has also led to organisational
changes within the company.
Organisational change
"To ensure we continue to get stories back from our customers
about our products, we have established two new positions - Fleet
Manager and Technical Support Representative. We don't charge our
customers for any time spent with these roles and regard them as
our ears and eyes in the market - through which we can anticipate
future needs."
Better by Design has also been helpful in terms of design and
future research and development activities. Before developing
product modifications, Pacific Aerospace now checks for market fit
and the XSTOL focus. "If it doesn't fit, we don't do it. This has
cut down on a lot of unnecessary work."
The most valuable lesson learned from Better by Design:
"Clearly understanding what you're good at and continuing to
reinforce that with everything you do."