Before the war, approximately 65% of Pet Technologies company sales consisted of exports. The geography of our external sales covers 54 countries around the world. Considering the nature of our business (we manufacture complex and expensive equipment for PET bottle production, we don't have a warehouse and we work on prepayment terms) each contract is always hard-won and require a lot of time. For example, we had been negotiating with a client from South Africa for about three years before they finally made a decision in our favor. However, we withdrew the agreement within a few days after the Russian invasion. A similar story occurred with the buyers from Latin America.
This is a pressing issue for export-oriented businesses. Foreign customers know and respect us, but they are afraid to buy from us. And it's understandable: Pet Technologies factory is located in Chernihiv. What guarantee can we provide to international buyers that our situation is not worse than back in 1942 and that our business is not paralyzed?
Since the launch of the factory after a two-month shutdown in spring 2022, we have tried various solutions to address this problem. For the first time in the company's history, we even considered the option of setting up a warehouse in Austria. However, this would have been a very expensive and high-risk project since each machine we produce is tailored to specific orders - there are no standardized models in this market. Furthermore, the average cost of one machine is around 200,000 euros. We quickly abandoned this idea and started exploring other alternatives.
The solution we eventually found turned out to be simple, inexpensive, and, as time has shown, highly effective. We installed cameras in the company's workshops to right in front of the machines being assembled by our craftsmen and opened access to them for current and potential clients. “Are you in doubt? Please feel free to connect and watch in real-time how your machine is being assembled at our factory in Ukraine!” - we offered them.
In addition, Pet Technologies has become more active on social media. Every day on Facebook, LinkedIn, and our website, we showcase the life of our company: shipping compressors, attaching components, and mechanics tightening nuts. I want to emphasize that there's no fancy content - we focus on real-life and work!As of June 2023, Pet Technologies has experiencedthe highest percentage growth in the number of subscribers. We have evensurpassed our highly active social media competitor, Flexblow from Lithuania(11% growth compared to their 9% over three months). The ratio between thenumber of subscribers and the level of engagement with content on LinkedInstands at 42% - the best performance in the industry. According to the projectmanager, some of our videos on LinkedIn are reaching thousands of views withinour target audience. Partners and potential clients from different countriesare sharing our publications. This allows us to reach an audience that wewouldn't have been able to reach through other means given the currentcircumstances.
Clients gain confidence in the fact that thefactory is genuinely operational, and this is now crucial in theirdecision-making process for collaboration. Several weeks before purchasing theUPF-30 machine (a semi-automatic blow molding machine for large volumes up to30 liters), a client from Spain subscribed to our company's corporate page andsent friend requests to regional managers on LinkedIn.
"In the last two to three months,corporations in Latin America have become more active, resuming theirinquiries," said our business development manager for that region."In most cases, employees of these corporations are subscribed to PetTechnologies' page. They often mention one or another of the videos posted onLinkedIn during conversations."
The increased visibility through cameras andsocial media engagement has proven to be effective in building trust andgenerating interest from potential clients. It has revitalized interactionswith corporations in Latin America and has significantly impacted thedecision-making process in favor of Pet Technologies.
At the moment when I am finishing this material, anew client from Bolivia has just sent a request for a blow molding machine toour manager via Facebook. When asked how they found us, they replied that a fewmonths ago, they saw reels about our machine, which was the first time theylearned about Pet Technologies. They later came across our posts in thematicblow molding groups and followed the company's page on Facebook. The decisionto collaborate was made after seeing a post on sales in Peru, as the country isnearby.
Proper handling of information has once againhelped the company during a challenging period. During the Covid-19 pandemic,we took a similar approach by launching an internal information project to keepemployees informed about company developments at various levels. We created acorporate television channel called Pet Technologies TV, where we broadcastedcompany news. Particularly, we focused on news related to the company'sachievements, such as launching a new project, significant sales in theinternational market, or initiating collaborations with new clients fromdifferent parts of the world.
Every Tuesday, department managers gathered newsfrom their respective departments, and we would air these news segments on TV.People took time to adjust, initially considering the initiative to be foolish,but over time, it yielded results. In addition to raising the level of mutualrespect between workshop craftsmen and office employees, people developed asense of pride in their company and a feeling of being part of something great.
During the war, the internal information projecttook on a new meaning and strengthened the "big ship" effect. Thismeans that company employees have confidence that everything is going wellwithin the company, there is a sales plan, and there are prospects. Theybelieve that the company will weather the storm of war. The "bigship" effect is the primary intangible asset valued equally by externalclients (buyers) and internal employees.
