Israel Telecommunications
Tackles U.S. Market

SUE FISHKOFF SPECIAL TO THE JEWISH NEWS

W

hen Oded Korit-
shoner, president
of U.S. operations
for Israel's Telrad
Telecommunications heard
the White House was look-
ing for a new phone sys-
tem, he rummaged for a
pen.
"I didn't know that," he
said. "Might be worth-
while."
That's typical of Telrad
USA's marketing attitude
— its willingness to go up
against telecommunica-
tions giants like AT&T
and Panasonic.
Mr. Koritshoner admits
his firm will never acquire
the same recognition as
these other companies. So
why would a lawyer's
office in Toledo, . Ohio,
choose a relatively un-
known Israeli product over
AT&T?
"I tell them I bring more
phone for the same dol-
lars," he says, quoting lib-
erally from a popular
advertisement for a
Japanese car company.
Telrad Telecommuni-
cations, a leading manu-
facturer of telecommunica-
tions equipment for 40
years, has worldwide sales
in excess of $200 million.
In January, it clinched a
deal with Bezek to mod-
ernize the country's phone
system.
Telrad's U.S. operations,
_ headquartered in Wood-
bury, N.Y., manufactures
integrated digital key tele-
phone systems, voice mail
systems, PBXs and ISDN
terminal equipment.
Since its first U.S. sale
in 1978, Telrad has
installed more than 2 mil-
lion telephone stations,
and last year had $30 mil-
lion in sales to small-and
medium-sized businesses.
In 1992, Mr. Korit-
shoner was named one of

the industry's most
influential execu-
tives by Tele-
connect maga-
zine, a lead-
ing trade
journal,
for his
"success in
establish-
ing Telrad as a leading
telecommunications com-
pany" -in the North
American market, and for
increasing sales by more
than 25 percent per year.
Telrad phone systems
pop up in unusual places.
An Indian reservation for
the Santo Domingo tribe in
Santa Fe, N. M., installed
the firm's phones as part
of its alcohol rehabilitation
program. And an elemen-
tary school in Lockwood,
Mon., installed Telrad dig-
ital telephones and voice
mail systems into every
classroom, so students
could do phone research
for class projects.

"We're trying to
improve our name
recognition in
niche marets."

But the bulk of the com-
pany's sales are to small
professional offices run by
doctors, lawyers and
accountants — offices that
can make best use of the
company's integrated,
user-friendly phone sys-
tem, which is limited to
250 work stations per loca-
tion.
It is no coincidence that
many of these customers
are Jewish, which dove-
tails neatly with Telrad's
new marketing thrust,
announced at last
November's General
Assembly of the Council of
Jewish Federations in
New York.
At that forum, dedicated
to Jewish business net-
working, Telrad said it
would begin marketing its
products aggressively
within the Jewish and pro-
Israel business community
— a huge potential mar-
ket, ripe for Israeli prod-
ucts, that has been virtual-

ly untapped.
The company's new mar-
keting approach focuses on
product quality, while tug-
ging discreetly at the
Jewish heartstrings. A
bombastic "buy Israeli"
campaign would not go
over well in today's mar-
ket, Mr. Koritshoner says.
"We aren't saying that
one should purchase
Telrad telephones because
the company is Israeli,"
Mr. Koritshoner explains.
"Rather, if you are consid-
ering the purchase of a
telephone system, give
Telrad a chance to present
its capabilities. Then, and
only then, should you pur-
chase our systems."As tra-
ditional fund-raising
sources dry up, more
Zionist organizations are
encouraging potential
Jewish donors to invest in
and set up joint ventures
with Israeli companies and
to buy Israeli products.
Telrad has positioned
itself on the cutting edge of
this new Zionist philan-
thropy.
Richard Dukas of the
Kahn Communications
Group, which repreSents
Telrad, says Telrad and
Telran are the only two
Israeli high-tech compa-
nies that market products
appropriate for a typical
American Jewish profes-
sional office.
"For Telrad, it's a natur-
al," Mr. Dukas says. "A
high number of doctors,
lawyers, accountants and
ad agencies are Jewish."
But to crack the
American market, you
have to play the American
marketing game, which is
where so many Israeli
companies come up short.
"There's an attitude in
Israeli businesses that if
you have the product,
that's it," Mr. Koritshoner
says. "But every product
has to be sold. The product
is important, but ultimate-
ly, it's people selling to
people."
Mr. Koritshoner has sur-
rounded himself with
Madison Avenue market-
ing professionals, includ-
ing Kahn Communi-

ISRAEL page 37

— $1 EQUALS 2.72 NIS (shekels) - Close Price 6/9/93

Stock Exchange Raises Records

A record amount
were initial, made public
money was raised on ttlar"-: offerings raising over
Tel Aviv Stock Exchange $582 million.
by a record number of
The record pace
public offerings last brought the number of
month.
companies traded on the
During the month, 58 exchange at the end of
ompanies, 41 of which
he month to 471.

Since the closure of the
min Ben-
territories in March, Eliei
lin Monday.
18,000 Israeli workers He pre is ea the indus
have joined the construe- try would soon be based
tio n field, Housing on all-Israeli labor.

Trade Deficit Jumps To $721 Million

The Israel trade deficit while exports rose by
jumped to $721 million
only 14.4 percent, to $1.2
last month, nearly a
billion. According to sea-
third higher than in
sonally adjusted figures,
April, as imports of pro-
excluding ships, air-
duction inputs, consumer planes, diamonds and
and investment goods
fuel, the trade gap fell by
rose sharply, the Israel
3 percent compared to
Central Bureau of the average deficit in
Statistics reported last
March and April, which
week.
rose a sharp 24 percent
Imports increased 20.6
compared to the first two
percent, to $1.7 billion,
months of the year.

,

Scitex Buys Dayton From Kodak

Scitex has reached an leader in computer-dri
agreement in principle yen, high-speed ink-jet
with Eastman Kodak to printers used for offset
acquire Dayton Opera-
printing for lotteries and
tions' continuous ink-jet
sales promotions as well
business for $70 million,
as for personalized direct
Scitex,
based
in
mail. Dayton's 1992
Herzliya, Israel, will pay
sales were $48 million,
$35 million in cash plus
with 1993 first quarter
an additional $35 million
sales of $15 million.
over the next five years
The final agreement is
based on a performance subject to regulatory
criteria.
clearances which are
Dayton, located in
expected by the end of
Dayton, Ohio, is a world the month.

World Bank Hires Israeli Economist

Michael Bruno, former
governor of the Bank of
Israel, is slated to
become vice president
and chief economist of
the World Bank.
The offer of the presti-
gious World Bank posi
tion came on the heels of

reports that Mr. Bruno
had accepted a position
with the Bank for East
European Development.
He said that he plans to
assume the position and
relocate to Washington
in September.

Free Export Area Propose

Finance Minister Avra-
ham Shohat approved
last week a legislative
proposal to create a free
export production area as
an additional venue to
attract foreign invest-
ment.
David Yerushalmi,
CEO of the Israel Export
Corporation which pro-
moted the concept, said,

"The government draft
proposal shows the real
mark of economic
reform!'
Before the announce-
ment, a number of high
technology companies
had committed them-
selves to be located in
such a zone leading to
the creation of up to
20,000 new jobs.

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