CNBC Disruptor 50

Phononic CEO shares the key to his company's market penetration strategy

Phononic CEO: Key to market penetration strategy
Phononic CEO: Key to market penetration strategy

When it comes to taking market share, Phononic founder and CEO Tony Atti is not scared to show competitors that his semiconductor company outperforms the rest.

"Direct sales and partnerships are key to our market penetration strategy," Atti told "Mad Money" host Jim Cramer on Friday. "To keep that momentum that you're so excited about, and as are we, we need partners as audacious as we are."

Phononic, No. 33 on CNBC's Disruptor 50 list, is revolutionizing the mechanics of cooling with thermo-electric cooling technology, which uses semiconductor chips to power refrigerators and freezers.

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The company's newest partnership, announced Friday, is with Thermo Fisher Life Sciences for medical refrigeration. Atti touted it as being an equally "audacious" counterpart to his operation.

"Here you have a partner who's made a significant commitment to sustainability, but also innovation, using our solid-state technology with a combination of performance features either not believed possible with a semiconductor not available with the incumbent technology," Atti said.

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Atti was especially proud of his company's ability to challenge the status quo in markets where many are still unsure of the power and potential that semiconductor chips wield.

"When we go after markets and the believability of semiconductor cooling is questioned, we tend to go after the biggest fish out there and challenge them to meet the performance specifications that are so demanding," the CEO said. "You won't find anything harder than a hospital, a clinic, pharmacy, or laboratory research, where Thermo is the unquestioned leader."

Phononic is also partnering with a soft drink manufacturer to bring coolers with more space and efficiency, as well as 25 percent less energy consumption, to consumer product retailers.

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Phononic CEO shares the key to his company's market penetration strategy
Phononic CEO shares the key to his company's market penetration strategy

Atti said that the effects of Phononic's devices are felt across the retail industry when implemented, not just at the stores.

"It's not just the store, it's the distributor and the bottler. What surprised us is there's trucks driving around aimlessly refilling refrigerators which is at a cost on labor, fuel, and emission that are released into the atmosphere," he said. "What's compelling to commercial beverage is that translates into anywhere form a 20 to 30 percent saving for the bottler or the distributor who doesn't have to restock the equipment as often."

Without the compressors packed into traditional refrigerators, Phononic's devices allow stores to increase their inventory by about 30 or 40 percent as well, Atti said.

"It drives the bottom line in what's an already ruthlessly competitive world where margins are tight," the CEO said. "So you not only have the product features of sustainability, efficiency, and compact space, but now we can communicate and emotional connection but also an economic one as well."

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