G-TEC Natural Gas Systems

Marketing Plan

> RESULTS

  • Increased sales by 100% in each of the first two years of the plan's implementation
  • Established business base in the metal fabrication market
  • New product development has led to penetration of new markets
  • Opportunities identified in additional markets

> COMPANY

G-TEC Natural Gas Systems, located in Buffalo NY, is a company that manufactures and sells equipment to better utilize natural gas in certain industrial and commercial heating applications such as oxy-fuel, welding, brazing and cutting. The system uses a compression system that effectively elevates gas pressure to a level that is sufficient for the specific application. Natural gas will function as an alternative to acetylene, propane, MAPP and polypropylene under these circumstances. The natural gas can be dispensed either through the compressor or portable cylinders. The benefits of this process are safety, convenience and reduced operating costs. G-TEC currently employs eight full-time staff members.

> SITUATION

Although the patented technology was developed in the late 1980's, commercialization had been limited under the previous ownership, because this venture was not their primary business focus. While the company did achieve some initial success in metal fabrication, muffler shops and retail ham glazing, there was minimal penetration of these markets and business growth was limited. In 1999, the current ownership acquired the assets and intellectual properties with the anticipation of reintroducing this technology to selected industrial applications. The Western New York Technology Development Center (Insyte Consulting) was engaged to help develop a formal marketing plan that would serve as the basis for the company's business growth and profitability.

> SOLUTION

In conjunction with company management, a formal marketing plan was written for the purpose of setting the company's 3-5 year strategic sales and marketing direction. The first step was to develop a comprehensive situation analysis that covered all market and competitive factors, as well as the company's position within these markets. This exercise enabled G-TEC to develop a specific market focus, where their future success would be most likely. From this point the company developed a strategic direction that was supported by the appropriate tactics, action plans and required budgets.

Most importantly, the company effectively implemented the strategic direction and consistently measured performance against the goals stated in the plan. This persistence has enabled the organization to both meet its objectives, as well as to react to new business opportunities.

The company has increased sales by 100% in each of the first two years of the plan's implementation. Continued growth of 25-50% is realistically projected for the next several years.

A business base has been effectively established in the metal fabrication market based on the company's product positioning of safety, convenience and reduced operating costs. A major national account has helped drive growth in this segment.

New product development has enabled G-TEC Natural Gas Systems to penetrate the jewelry manufacturing market and land three major suppliers to this segment. Additional opportunities have been identified with utilities, construction and glass lamp manufacturing. Penetration of these new segments has been accelerated by the partnerships that have been fostered with various industry associations, trade unions and other key organizations.


"The marketing planning process helped us to establish a business direction, a market focus and prioritization scheme that greatly increased the likelihood of our success. In addition we have been able to regularly update the plan based on changing economic and market conditions that we encounter." - Dave Reichard- President, GTEC Natural Gas Systems LLC