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Press Releases:
THUNDER FACTORY
Ranked Twentieth in the
Silicon Valley
Business Journal’s fastest
Growing Private Companies
THUNDER FACTORY
Names Marketing
Industry Veteran,
Barry Green, to
Board of Directors
THUNDER FACTORY
Accelerates Growth
in Southern California
Fleetwood Rv, San José
State University Choose
Thunder Factory For
Integrated Marketing
Programs
Business Growth at
Thunder Factory Spurs
Headquarters Move,
Expansion into L.A.
and N.Y.
In the News:
Entrepreneur Profile:
PATRICK DI CHIRO
Marketer Adopts
Innovative Tactics
Thunder Factory Wins
Fleetwood RV, San José
State University
Article List:
Confusing Spin
With Strategy
- Patrick Di Chiro
An Open Letter
To Al Ries, Ad Age
Columnist
Here's Where to Find
Integrated Marketing
- AdAge
Getting a Bead on 'Buzz'
- Virginia Postrel
Survey: Network TV
Does Worst Job of
Proving Advertising ROI
- Judann Pollack
Stratgic
Partnership Marketing
- interview w/ Thomas Edwards
Toughening Your Brand
- Lynn Upshaw
Coffee's For Closers
- Patrick Di Chiro
The Role of Key Opinion Leaders (KOLs)
in The Pharmaceutical Industry
- Joseph Gutman, MD
Playing the
Search-Engine Game
-Mylene Mangalindan, WSJ
At Last,
a Way to Measure Ads,
- Michael Totty, WSJ
Small Firms Can
Survive Sqeeze
By Revamping Marketing Efforts
- Jeff Bailey, WSJ
Study Says
Marketers Shifting
Toward Internet, Direct Mail
- Erin White, WSJ
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Marketer adopts innovative tactics
By Danek S. Kaus
It
was the best of times, it was the worst of times when Patrick Di
Chiro opened the Thunder Factory in San Mateo. It was October of
2000, right in the middle of the dot-com meltdown.
“I felt the need for a different kind of marketing firm, one
that focuses on building the client’s business as opposed
to creating awareness and branding,” Mr. Di Chiro says. “I
take a much more business approach than many marketing companies.
That’s the biggest reason for our fast success.”
Because so many people had lost their jobs when Thunder Factory
was starting, Mr. Di Chiro was able to hire skilled writers, artists
and marketers on a freelance basis. “It was great in the beginning
when we didn’t have predictable revenues,” he adds.
“But as I competed for customers, they wanted to be sure we
had a full-time staff, that it was a real firm with a culture, so
we hired full-time people.”
However, the company continues to outsource some specialized functions,
such as coding for client Web sites, he says.
As the survivors of the dot-com bust tightened their belts, they
wanted to ensure that their marketing programs would deliver.
Mr. Di Chiro says Thunder Factory answered that need with what he
calls integrated marketing. “In our view, it is all about
building the strategy first, based on a big idea - that is
something that is greatly needed in marketing - and then developing
the tactical execution around that,” he explains.
He adds that his approach differs significantly from that taken
by most marketing firms, which he says are too focused on tactics.
“We are what we call tactically agnostic and media agnostic,”
Mr. Di Chiro says. “We don’t put preference on any kind
of marketing tactic or media type. Today, in the global network
and technology-driven world, you need that kind of approach to succeed.”
That tactic has proved successful, for Thunder Factory as well as
for its clients.
In 2003, the company earned $1.4 million, a nearly 200 percent increase
from the $479,600 in revenues it earned in 2001. In 2004, it is
on track to generate revenues of $3.5 million and plans to expand
its 18-member staff.
Thunder
Factory was able to help one of its first clients, ZANTAZ, in Pleasanton,
achieve a 300 percent increase in revenues in one year. “We
helped them focus their brand positioning so it was very compelling
for customers,” Mr. Di Chiro explains. “We also helped
them clarify their value proposition and focus on the right customers.”
The digital and compliance archiving and electronic discovery company
recently received $20 million from General Atlantic Partners, one
of the country’s leading VC firms, Mr. Di Chiro, says.
“They are poised to do major things,” he adds, “They
have grown substantially and they just acquired another company
called SteelPoint, in Boston. That company was the leader in electronic
discovery and litigation management space. So now they have essentially
doubled the size of the company and will continue growing.”
The firm also helped AT&T Wireless develop an e-commerce strategy.
“This was a behavioral change,” Mr. Di Chiro says. “Very
few customers (buy online) in the wireless industry. They typically
buy from company-owned or independent retailers. What AT&T succeeded
in doing was to ‘Amazon’ the wireless industry. The
margins are much better for them.”
To ensure the program’s success, Thunder Factory learned customers’
buying habits and created reasons for them to change their buying
habits. “We did our research and found ways to overcome objections,”
Mr. Di Chiro says.
For example, with Thunder Factory’s help, AT&T capitalized
on consumers’ desire for instant gratification by offering
free overnight delivery.
People also feel that they can haggle and get a better price when
dealing with a real person face-to-face. To overcome this challenge,
AT&T offered specials that were only available online.
“AT&T set a high objective level in terms of number of
sales from the site. They blew through that in the first six months,”
Mr. Di Chiro says.
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