Dynaweld

Australia’s largest self-serve hardware retailer, Bunnings, issued a supply Tender for the category of welding supplies, equipment and accessories.

Bunnings invited Dynaweld to the RFP although advised they were an outside chance due to their small size and with a lesser known brand in the marketplace.

At time of the Tender, Strategic Specialists Group were already providing sales and marketing services to Dynaweld. The opportunity was to increase service engagement and take the lead on preparing the response proposal to Bunnings and negotiating a supply contract.

A Marketing Director with sector expertise in retail and wholesale sales was engaged as well as support through a Sales Director.

The Marketing Director, with support of the strategic Sales Director, were engaged for 6-months on this project. Specific deliverables included:

• Customer segmentation: introduction of a new customer segment of the “DIY/do-it-yourself”, end consumer as opposed to wholesale customers (e.g. Bunnings, Mitre 10, Thrifty)
• Customer value proposition: established “the right tool for the DIY job at home” rather than technical information (e.g. amps, arc) for professional tradespersons
• Product marketing: shift from product features to customer benefits
• Product bundling: creation of product “value packs” to assist DIY customers (e.g. increased SKUs); product range up-selling; introducing new customers to the category (e.g. DIY welding starter-kit)
• Packaging and promotion: redesigned packaging and marketing promotion collateral to competitively differentiate and stand-alone in a self-serve retail environment
• Marketing communications campaigns: “value pack” promotions aligned with Bunnings’ objectives to support in-store, self-serve menu selection and reach new category customers
• Merchandising: redesign product bay in Bunnings to aid DIY self-serve; provision of display board user guides; scannable on-pack QR codes providing product demonstration video content; display board product selection guide matched to DIY project examples
• Tender proposal: development and production of the Tender proposal; visual representation of the Bunnings bay for Dynaweld products; planogram; pricing structure; visual samples of all product packaging and marketing collateral and merchandising designs
• Sales toolkit: development of the sales toolkit to support the Tender proposal
• Sales team training and development: capability development to deliver the Tender proposal
• Deal negotiation: participation in the negotiation

Dynaweld were appointed category exclusivity for Bunnings nationwide. As a result, the size of the business doubled in 18-months and doubled again the following 18-months. Other results include:

• Innovation leader: the brand has shifted to category leader, driving innovation across the sector
• Customer centric: an end-customer focus drives both product and market development
• Long-term plan: a marketing orientation drives value for Bunnings and end consumers.