Marketing and branding hold the key at A&B
A&B Glass has actively followed the acquisition trail to grow its market share. Managing Director Dave Barrett talks exclusively to Windows Active
One of the UK’s most successful fabricators has embarked on an aggressive acquisition trail that has seen a number of household names in the fabrication sector snapped up. Much of the responsibility for A&B Glass’s acquisition activity has fallen on the shoulders of charismatic Managing Director Dave Barrett. Having lost none of his enthusiasm over the years, Dave is buzzing at the prospect of rolling out to a wider audience the tried and tested formula master-minded at A&B: “Unlike many organisations we haven’t set our stall out to have a 2,3,4 or 5-year plan. A few years ago we looked at the notion of saturation and the impact on the industry and our business. Subsequently, we looked at alternative markets such as commercial and newbuild, and then eyed the consequences of fallout in the domestic replacement market. We concluded that we needed to safeguard our key trade markets and decided the best option was to take market share. By looking at other industries with similar characteristics to the window industry we were able to draw comparisons. Sectors that were selling similar commodity products, yet had reached saturation were identified. They included those involved in the manufacturing and sale of household goods, retail products and cars. We concluded that those organisations that had a branded product and superior marketing won the battle for sales.”
Replicating success
Through marketing and branding, A&B was able to replicate the success stories of other sectors in its own markets. Dave believes that you can add as many ‘bells and whistles’ to existing products, but it is the branding and marketing that will win the day. Dave draws comparisons with one particular retail manufacturer who’s retail product was far less exciting than windows: “By simply by changing the shape of the product together with a clever strap line the company took 30% market share in a 9 month period.”
When you transfer the exercise of branding and marketing to the window industry you start to ‘look under the bonnet’ of what you are offering and realise there are many features and benefits that just aren’t communicated to fabricators and installers' customers. Dave was also conscious of the fact that what his salesmen had to offer frequently comprised features offered by other companies. However, by introducing and adding the Tricept branded range of windows, doors and conservatories to their pitch, retail salespeople can offer something considerably different that no one else offers and thus can’t compare to. This has worked well for 10 years, and has been part of 4 different campaigns – the current one centring on energy efficiency. A&B's customers have embraced this and as a result the company has achieved organic growth.
Expanding market share
While continuing to run a successful trade supply business, A&B, owned by Ray Byford, looked at other ways to expand market share and grow the business. The commercial sector was always of interest and after much research A&B concluded the best way to enter this market was by acquisition. As a result Asset Manufacturing was purchased, a company with a good commercial track record, coupled with a good number of 5-year partnership contracts already in place. Fineline, a company who were 60/40 commercial and retail, were then added to the portfolio. Ray explains the rationale behind the acquisitions: “We look for successful, well-run companies that have longevity in their chosen sectors. They must have good management and people, and with this is bred a good customer base. We purchased the expertise in the commercial markets and this has proved very successful. A larger manufacturing base at A&B in Sudbury was subsequently created that was able to supply products to Fineline and Asset, which allowed them to concentrate on selling into the commercial markets.”
The business further progressed with the creation of a newbuild division at A&B’s Sudbury HQ, supplying to all of the UK’s major house builders. The next decision for A&B was how to enhance its trade sales, after it believed market saturation had done its worst. Dave expands: “We were in a position to attack the trade supply market. During all our moves into the commercial markets we had maintained a healthy level of trade sales. A&B is run on innovation - this relates to products, marketing and sales. You need all these areas to be constantly innovating in order to move the business forward. We have the right formula but fully understand that installers can be extremely loyal to their existing suppliers. This can prove to be a barrier when looking to increase market share.”
Removing barriers
Given the previous success in acquisitions, A&B realised that in order to remove the loyalty barrier when searching for new customers, it was time to go on the acquisition trail again: “Trade fabricators Coastal and John Fredericks clearly fitted the bill for successful, well run companies with an extremely good customer base. These two were acquired and we have been delighted with the results. At Coastal we have introduced the Tricept brand to customers. These installers were very protective towards the Coastal brand, but after a day looking at the Tricept concept they had their heads turned by what it offered. As a result many have successfully used the well respected Coastal brand in tandem with Tricept to help guarantee closure of the sale. In the past, the installers' loyalty to Coastal had prevented us from having a chance to present Tricept but the response was staggering and proved we had made the right decision,” enthuses Dave.
The latest addition, John Fredericks, is another example of a fabricator with an extremely loyal customer base: “If you ask all installation companies what they want from their window supplier - apart from leads, they want something different. The end result may be the same for the consumer, but the journey to the sale needs to be different. The power of third-party selling is also a very useful mechanism when it comes to selling with a brand, and customers can do that with Tricept. John Fredericks also enabled us to spread our fabrication network further north, which was a necessity with an ever-expanding northern customer base.”
Dave is more enthusiastic than he has ever been because he now has four sales teams at his disposal, all selling Tricept windows, doors and conservatories to customers. For the acquired businesses, it gives them something different to sell to existing customers. The Tricept branded range is ideal for professional installers who have been buying a good quality window from a renowned fabricator but need something different to boost sales. This explains the rationale behind the purchases of Coastal and John Fredericks. The brand also means the A&B Group and its network of customers can move away from companies solely competing on price.
All this activity means that A&B needs a committed set of manufacturing partners as Dave acknowledges: “We recognised we couldn’t move forward without the support and understanding of our key suppliers. We are not an average fabricator and with this comes a different set of needs and requirements. Having created our own brand we have no need to promote the name and brand of our systems companies. They are there to deliver product innovation in their area of specialty - PVC-U profile. Indeed A&B and Coastal have found Eurocell the perfect partner as they had the right products and were extremely innovative. They stick to their core activities and have a business that concentrates on delivering innovation and products to fabricators. They are also nice people to do business with which is also extremely important.”
Martin Saunders, Sales Director of Eurocell, is extremely pleased to be involved with such a forward-thinking and progressive customer. He says: “Our relationship with A&B and its associated companies is proof that Eurocell can deliver on all counts. By creating their own range of branded products A&B have extremely high expectations of their component suppliers. Innovation is at the heart of these expectations and we are constantly improving our products to ensure they meet these expectations. We always have a eye on the future and this helps drive our own product development process.”
Across all manufacturing bases A&B is now able to offer a comprehensive range of glazed or unglazed PVC-U and aluminum products to suit all trade, newbuild and commercial markets. The key is that they sell products via their brands and the reputation of their manufacturing businesses, rather than via the profile type. The best components have been chosen to make the best windows, and healthy suppliers help to achieve this in a number of A&B's businesses. This is a fantastic endorsement for Eurocell who are judged on their performance and innovation, and doubtless Dave Barrett has high and demanding expectations: “We have to keep the innovation going and we have a passion to give our customers more each year. By continual innovation we can create the desire among installers. As a mass producer of PVC-U windows we need to deliver more and this is through branding and innovation. Indeed the launch of more exciting products is imminent, with the marketing to back it up of course.”
www.abglass.co.uk
