Many engineering and manufacturing businesses are looking beyond their traditional sectors, as they move to improve resilience, access new investment, and reduce exposure to industry downturns.
The Coranavirus pandemic certainly forced companies to become more agile and ‘pivot’ towards new markets. A diversification mindset became embedded where it hadn’t been present before.
International freight costs, geopolitical vulnerabilities and sustainability concerns are accelerating onshoring, creating new opportunities for UK businesses.
And the growth of industries such as offshore wind, nuclear power, hydrogen, defence and space is driving businesses to re-think their strategies and adapt their expertise, capabilities and facilities for new sectors.
As an industrial marketing company that’s embedded into the UK’s engineering and manufacturing landscape – and a member of some of the country’s most prominent trade bodies – we’ve seen the drive for diversification at first hand.
Suppliers to automotive OEMs are exploring how they can serve the defence sector. Oil and gas engineering specialists are applying their experience in offshore wind farm development. Firms with deep experience in the process sector are integrating into new supply chains for new nuclear projects.
But with diversification comes the need to re-align marketing and communication strategies and re-assess tactics. When entering a new sector, a business will be competing against incumbents, and companies with brand new solutions to offer. Building profile, standing out and engaging the right decision makers is crucial.
How can marketing support your industrial diversification?
Research
In-depth market research ensures that diversification decisions are well-informed and aligned with real opportunities rather than assumptions. By analysing target markets, you can better understand both risks and opportunities, enabling you to develop a more effective and targeted sales strategy. It is essential to understand customer personas, including their needs, behaviours, and expectations.
You could also gain deeper insights by engaging with current customers and potential prospects – for example via focus groups, feedback sessions and demonstrations – to help you understand where your capabilities are needed in the supply chain, what customers will value most, and how your business could be positioned.
It’s also vital to undertake competitor analysis. This will help you benchmark your position within a target sector, identify competitors’ strengths and weaknesses, and understand where differentiation is possible.
Research into marketing channels and tactics is also critical: this will help you identify the most effective ways to reach target audiences. What networks are your prospects part of? What events do they attend? How active are they on socials?
Marketing strategy
Once research is complete, a focused marketing strategy will become the blueprint for future marketing – and help you launch confidently into a new sector. All marketing activities must be aligned with business objectives and support growth. Setting out this strategy will help you measure ROI and refine marketing activities over time.
An important ingredient to the strategy is a map of the customer journey. By identifying key touchpoints, you’ll understand how customers interact with your brand.
Developing a launch schedule is also critical. This will outline how new products, services, or market entries will be introduced.
This includes selecting appropriate channels, defining timelines, setting clear milestones and establishing KPIs.
Brand identity
Businesses should consider brand identity when embarking on a diversification journey. How will your brand be perceived in a new market? Will your established visual style resonate in a new industry, if it was developed for engagement with other sectors?
You may need to consider product or service names, or create a new company division to serve a specific sector.
Serious consideration must be given to what your brand truly means as your business evolves. Does it represent your business today, or is it a legacy of the past?
Messaging
Entering a new market? Then you need to get your messaging right.
What differentiates you from your competitors? How are your solutions better than established products and processes? Potential customers, need to know – and your proposition needs to be powerfully conveyed.
Even if your core offering remains the same, the way it is communicated must reflect the needs and expectations of the new audience. Different markets may value different benefits, so it is important to tailor the value proposition accordingly.
Language and tone of voice must also be carefully considered. You’ll need to become familiar with an industry’s terminology and nuances.
All marketing channels and materials should convey any updated messaging. Consistency is key.
Websites and SEO
A strong digital presence is another key factor in successful industrial diversification. Your website is often the first point of interaction for potential customers. It must clearly communicate your offering, expertise and USPs. Updating the website to reflect new products, services, and market positioning is essential. This may involve restructuring content, adding sector and campaign focused landing pages, or creating dedicated microsites for specific audiences.
Search engine optimisation (SEO) can also play an important role in improving visibility and helping the right audience discover your business online.
Content marketing
Need to educate a new audience on your services or products? Want to establish your business as a specialist with unique capabilities? Generating impactful content will help you achieve this!
Blogs, thought leadership pieces, white papers, case studies, videos and animations can all form a part of your content marketing efforts.
And with the rise of the self-directed buyer – a customer who prefers to research, evaluate, and make purchasing decisions independently before engaging with a sales function – it’s ever more important to provide rich content for prospects to engage with. This can include demo videos, data sheets, Q and A articles and interactive or augmented reality content.
Social media
Social media is an important channel for reaching and engaging new audiences, and LinkedIn is particularly valuable for B2B engagement, making it an important tool for sales and marketing teams.
Engaging social media content – from videos to LinkedIn articles and infographics – will help you position your business in its target sectors and educate decision makers on your capabilities.
Actively interacting with industry news and conversations further strengthens your presence and credibility, while social media advertising campaigns can help you target prospects in specific job roles, business types and sectors.
You may also need to set up new social media pages or platforms, if this is necessary for engagement with new sectors.
Public relations
Public relations (PR) is a powerful tool to employ when entering new markets and building brand awareness.
By engaging with key journalists, media outlets and platforms within target sectors, businesses can effectively communicate their message to the right audiences, and ongoing PR efforts will help establish credibility and maintain visibility.
Marketing collateral
Marketing collateral supports both communication and sales efforts.
High-quality materials such as brochures, data sheets, exhibition stands and presentations should reflect your proposition in new markets and be made easily accessible to your marketing and sales teams.
Networking
Networks provide valuable opportunities to engage with new markets and build relationships. Trade organisations and industry networks allow businesses to connect with potential customers, partners and influencers. Leveraging shared connections and memberships can further strengthen engagement.
We’re a member of networks including NOF, Global Underwater Hub, Make UK, Make UK Defence, the North East Defence and Security Cluster, the North East Automotive Alliance and Engineering and Manufacturing Network: all of these organisations do valuable work in helping their members build profile and open up new opportunities.
Events
Want to put your business in the spotlight, meet decision makers face to face and gain more knowledge of industry challenges and opportunities? You’ll need to hit the road!
Attending, exhibiting at and sponsoring expos, networking events and conferences will help your business gain a visible presence in target industries and make those all important personal connections too. They require time and resources, but are often essential to a building momentum when diversifying.
We can support you on your diversification journey
The Horizon Works team will be at the NOF Industrial Diversification Conference and Exhibition on 9th July at the Energy Central Learning Hub in Blyth.
The event is covering sectors such as defence, space, civil infrastructure, water infrastructure and film and TV, and you can meet us there for a chat about our specialist support for industrial diversification.
Or you can contact our experts in industrial marketing to set up an initial call here.