NCJ Number
133090
Date Published
1990
Length
111 pages
Annotation
Michigan State Industries (MSI), a diversified manufacturing operation within the Michigan Department of Corrections, produces a wide variety of products, and management has taken several steps to enhance MSI's customer base and sales.
Abstract
Through MSI, inmates manufacture products and perform services that are, in turn, marketed within the State and across the country. Work opportunities provided by MSI help inmates develop positive work habits and skills that will assist them in leading productive lives once released. To enhance operations, MSI engaged the consulting services of Michigan's Department of Management and Budget. A market survey was conducted to identify new market growth opportunities and to study new product development opportunities. The survey involved sales trend analysis, interviews with existing and potential customers, and a large mail survey. Sales trend analysis examined patterns and trends of existing sales. Interviews involved selecting purchasing agents from State agencies and purchasing agents of potential new agencies. The mail survey was distributed to potential new agencies across the State who qualify as customers under MSI's charter. Sales analysis revealed that MSI has a very small share of business outside State agencies and the Department of Corrections and that additional penetration of existing products in existing markets is possible. Personal interviews with purchasing agents from State agencies indicated that MSI has a major marketing communication problem. There was a widespread image of poor quality associated with MSI products. New product ideas mentioned in interviews were janitorial tools, sporting equipment, outdoor recreational supplies, uniforms, protective clothing, plastic products, weather stripping, and computer disks. Short-term marketing recommendations for MSI focus on communications, inventory management, service, and pricing. It is suggested that MSI implement a market development growth strategy after dealing with the preceding marketing issues and that the market development strategy initially focus on colleges and hospitals. Appendixes contain the survey forms and supplementary data. 23 exhibits