case study plastic

A Case Study Report on Plastic Industries Inc.

Submitted to

Teklegiorgis Assefa, MBA(Assistant professor)

October 2011

Prepared by:

Abdu Kedir GSE/0062/03 Daniel Altah GSE/0076/03 Dawit Kebede GSE/0079/03 Dereje H/Gebriel GSE/0080/03 Elias Negash GSE/0081/03

E1MAMM1

Addis Ababa University School of CommerceDepartment of Marketing

Table of Contents

Part one: Case summary.....................................................................................3

Key points.............................................................................................................3

SWOT analysis.......................................................................................................4

Part two: Theoretical framework........................................................................4

Sales Management................................................................................................5

Part three: Question Analysis.............................................................................7

Question no 1........................................................................................................7

Question no 2......................................................................................................10

Question no 3......................................................................................................13

Question no 4......................................................................................................17

References

Part one: Case summary | Plastic Industries Inc. 2

Key points

Key points of the case study:

Plastic Industries Inc is an American plastic pipe manufacturer founded by group of

wealthy individuals

The management of Plastic Industries Inc is currently faced with promotion problem of

its new product

Though the company had expected four years of operation loss at initial phase, it became

profitable early in the second half of the third year of operation

Plastic pipe are manufactured under a process known as extrusion process

It is observed that the number of plastic pipe manufactures are small but increasing in the

US market

Plastic pipes are being considered as a replacement for other types of pipes in the US

market

Plastic Industries Inc is a major supplier of plastic pipe to major oil producer companies

The plastic pipe market has a major problem related to the setting of standardization of

quality

The company has three sales engineers and one factory representative to target its

product sales to selected major oil producers

The home market has been considered as an attractive and potential five times bigger

market than the current one.

The bad image of plastic pipes in the home market in addition to the lack of quality

standards and other factors have made users uninterested about the product

Advertising to the public and construction industry has been considered as solution for

the current problem faced in the home market

Strengths The company achieved growth at the third year making it ahead of sated plan

Became a leading and major supplier of plastic pipe to oil producers firms

| Plastic Industries Inc. 3

` Achieved sales and profits of its product in some selected markets

Ability to bring new type of product to the market

The extruder used is completely automated and less costly for maintenance and training

Easy availability of raw materials for manufacturing

The polyethylene pipe is considered suitable for mine drainage operations and it doesn’t

cause corrosion problems

Weaknesses

The sales growth has been below expectation despite the products strength believed to

have

No grading of performance of standards in the market to measure plastic pipe

The company did not work on image building activities

Opportunities

Plastic pipe are considered as newly product replacement in the market with prospective

sales

The product in the home market is negatively viewed by users and middlemen

The number of plastic manufactures is small in the market which benefit the company

The home market is a new prospective attractive five times bigger market place for the

company if properly promoted and current image changed

There is a room for growth in the future

Threats

There is no standardization of quality for plastic pipe exposing the product to possible

failures

The building codes of in most cities must be rewritten to allow the use of plastic pipes

The number of plastic producers coming is growing in the market

There is a need for distribution and nearby warehousing points creation to avoid

shipping costs in the future

SWOT Analysis

Part two: Theoretical framework


Sales Management

Sales management is a business discipline which is focused on the practical application of sales techniques and the management of a firm's sales operations. It is an important business function as net sales through the sale of products and services and resulting profit drive most commercial business. These are also typically the goals and performance indicators of sales management.

Sales manager is the typical title of someone whose role is sales management. The role typically involves sales planning, human resources, talent development, leadership and control of resources such as organizational assets.

Sales planning

Sales planning involve strategy, setting profit-based sales targets, quotas, sales forecasting, demand management and the writing and execution of a sales plan. A sales plan is a strategic document that outlines the business targets, resources and sales activities. It typically follows the lead of the marketing plan, strategic planning[1] [2] and the business plan with more specific detail on how the objectives can be achieved through the actual sale of products and services.

Recruitment of Sales Staff

The three recruitment tasks used in sales management are Job analysis; Job description and Job qualifications

Job analysis is performed to specify the certain tasks that a salesperson would be responsible for on a daily basis. It should identify what activities are deemed as being vital to the success of the company. Any person associated with the sales organization or the human resources department could carry out the analysis as well as an outside specialist (Spiro, pp.134). The person that is responsible for completing a job analysis should have an in-depth comprehension of the daily activities of the salespeople.

This job analysis is then written in an explicit manner as a job description. The general information consists of:

1. Title of job

2. Organizational relationship

3. Types of products and services sold

4. Types of customers called on

5. Duties and responsibilities related to the job

6. Job demands


http://en.wikipedia.org/wiki/Business_plan

http://en.wikipedia.org/wiki/Sales_management#cite_note-1

http://en.wikipedia.org/wiki/Sales_management#cite_note-0

http://en.wikipedia.org/wiki/Strategic_planning

http://en.wikipedia.org/wiki/Marketing_plan

http://en.wikipedia.org/wiki/Demand_management

http://en.wikipedia.org/wiki/Forecast

http://en.wikipedia.org/wiki/Profit-based_sales_targets

http://en.wikipedia.org/wiki/Leadership

http://en.wikipedia.org/wiki/Talent_development

http://en.wikipedia.org/wiki/Human_resources

http://en.wikipedia.org/wiki/Performance_indicator

http://en.wikipedia.org/wiki/Profit

http://en.wikipedia.org/wiki/Service_(economics)

http://en.wikipedia.org/wiki/Product_(business)

http://en.wikipedia.org/wiki/Sales_(accounting)

http://en.wikipedia.org/wiki/Sales_operations

http://en.wikipedia.org/wiki/Sales

http://en.wikipedia.org/wiki/Business

7. Hiring specifications

An effective job description will identify compensation plans, size of workload, and the salespeople’s duties. It is also primarily responsible for hiring tools such as application forms and psychological tests.

The most difficult part of this process would be the determination of job qualifications. A reason for this difficulty is because hiring affects a company’s competitive advantage in the market as well as the amount of revenue. Additionally, there should be a set of hiring attributes that is associated with each sales job that is within a company. If an individual does not excel in their assigned territory, it could be due to external factors relating to that person’s environment.

Let it be noted that a company should be careful not to submit to discrimination in regards to employment. A number of qualifications (ethnic background, age, etc.) cannot be used in the selection process of hiring.

Sales reporting

The sales reporting includes the key performance indicators of the sales force. The Key Performance Indicators indicate whether or not the sales process is being operated effectively and achieves the results as set forth in sales planning. It should enable the sales managers to take timely corrective action deviate from projected values. It also allows senior management to evaluate the sales manager. More "results related" than "process related" are information regarding the sales funnel and the hit rate.

Sales reporting can provide metrics for sales management compensation. Rewarding the best managers without accurate and reliable sales reports is not objective. Also, sales reports are made for internal use for top management. If other divisions’ compensation plan depends on final results, it is needed to present results of sales department’s work to other departments.

Finally, sales reports are required for investors, partners and government, so the sales management system should have advanced reporting capabilities to satisfy the needs of different stakeholders.

Part three: Question Analysis | Plastic Industries Inc. 6

http://en.wikipedia.org/wiki/Management_system

http://en.wikipedia.org/wiki/Hit_rate

http://en.wikipedia.org/wiki/Sales_funnel

http://en.wikipedia.org/wiki/Key_performance_indicators#Marketing_KPIs

Question no 1What should be the role of personal selling for a product such as this?

Personal selling is oral communication with potential buyers of a product with the intention of

making a sale. The personal selling may focus initially on developing a relationship with the

potential buyer, but will always ultimately end with an attempt to "close the sale"

Types of Sales person

1. Inside Order Takers receive orders by mail/phone, sales person in a retail store.

2. Field Order Takers travel to customers. Use laptop computers to improve tracking of inventory and orders etc.

3. Delivery salesperson

4. Route or merchandising salesperson

5. Missionary Sales person Distribute information regarding new goods or services describes

attributes and leaves materials, does not close sales. Assist producers' customers in selling to

their own customers

6. Technical Salesperson Emphases technical knowledge; for example the Engineering

salesperson, who is primarily a consultant to Client companies

What are the main roles of the sales force?

Kotler describes six main activities of a sales force:

1. Prospecting - trying to find new customers

2. Communicating - with existing and potential customers about the product range

3. Selling - contact with the customer, answering questions and trying to close the sale

4. Servicing - providing support and service to the customer in the period up to delivery and

also post-sale

5. Information gathering - obtaining information about the market to feedback into the

marketing planning process

6. Allocating - in times of product shortage, the sales force may have the power to decide

how available stocks are allocated


Roles of Personal Selling for Plastic Pipe product

The Plastic industries Inc is currently offering an industrial product and mostly engages in business to

business type of relationship, thus technical sales people type of sales person would be most effective for

the industry. The role of the personal selling or sales people for this kind of product would be as follows:

a. Identifying decision makers, decision processes, and qualified buyers

They have to identify the prospects or potential buyers in their sales district. The sales

person should identify the major prospective buyers who could use the plastic pipe. They

also need to know the decision makers and decision process of those prospects. In

identifying the prospects, the salespeople need to make sure that the prospects have the

willingness, financial capacity and the authority to buy this product.

b. Promoting Plastic pipe to the major oil companies and home construction

industries

Personal selling creates demand for both new as well as existing products. It helps

creates new customers and, thus helps in expanding the market for the product. Since the

products are new to market, the sales people need to work hard on promoting this product

to the prospect both in the oil and home construction industry which are believed to be

the major buyers.

c. Generating increased sales at the point of purchase

During their sales presentation and demonstration, the sales people should persuade the

prospects to place order

d. Providing detailed and up-to-date information to the potential buyers

Personal selling provides an opportunity to the prospects consumers to know about this

new product introduced in the market. Thus, it informs and educates the consumers about

product. The sales people should give detailed and up-to-date information regarding the

product. The Engineers should specially give detailed persuasive information on the

technical aspect of the product.

e. Maintaining a personal relationship with key clients

The Sales people have to maintain personal relationships with the decision makers of

prospects to have a close communication and healthy business relationships. In addition,

they serve as the only contact points who liaise between the company and the customers.


Moreover, the role of the personal selling in the case of new product is outlined as follows:

It is because of personal selling that customers come to know about the use of this new

product in the market. Sales person demonstrate the product before the prospective

buyers and explain the use and utility of the products.

Personal selling gives an opportunity to the customers to put forward their complaints

and difficulties in using the product and get the solution immediately. Moreover, the

personal selling will enable the company describe as the plastic pipe benefits over metal

pipe which is actually in place, more than any other promotional tool.

It also leads the company to product improvement. While selling personally the seller

gets aware with the choice and demands of customers and makes suggestions accordingly

to the manufacturer

In conclusion, the personal selling elements of promotion mix would enable the plastic

industries achieve by the technical sales person like engineers persuade the consumers.

These engineers should give a convincing explanation and demonstration to clients about

the quality, the instructions on how to use the plastic pipe and the benefits the product

holds in comparison with the existing metal pipe.

Question no 2What kind or kinds of promotion would probably have been most productive for plastic industries?

Promotion has been defined as the coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea.


Elements of Promotion

Traditionally the promotional mix has included four elements: advertising, sales promotion, publicity/public relations, and personal selling. However, direct marketing as well as interactive media as major promotional-mix elements that modern-day marketers use to communicate with their target markets. Each element of the promotional mix is viewed as an integrated marketing communications tool that plays a distinctive role. Each may take on a variety of forms and each has certain advantages.

Advertising

Advertising is defined as any paid form of no personal communication about an organization, product, service, or idea by an identified sponsor. The paid aspect of this definition reflects the fact that the space or time for an advertising message generally must be bought.

The no personal component means that advertising involves mass media (e.g., TV, Radio, magazines, newspapers) that can transmit a message to large groups of individuals, often at the same time. The nonpersonal nature of advertising means that there is generally no opportunity for immediate feedback from the message recipient (exception direct-response advertising).

Interactive/Internet Marketing

Interactive media allow for a back-and-forth flow of information whereby users can participate in and modify the form and content of the information they receive in real time. Unlike traditional forms of marketing communications such as advertising, which are one-way in nature, the new media allow users to perform a variety of functions such as receive and alter information and images, make inquiries, respond to questions, and, of course, make purchases. In addition to the Internet, other forms of interactive media include CD-ROMs, kiosks, and interactive television. However, the interactive medium that is having the greatest impact on marketing is the Internet, especially through the component known as the World Wide Web.

Sales Promotion

Sales promotion which is generally defined as those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales. Sales promotion is generally broken into two major categories: Consumer-oriented and trade-oriented activities.

Consumer-oriented sales promotion is targeted to the ultimate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes and various point-of-purchase materials. These promotional tools encourage consumers to make an immediate purchase and thus can stimulate short-term sales.


Trade-oriented sales promotion is targeted toward marketing intermediaries such as wholesalers, distributors, and retailers. Promotional and merchandising allowances, price deals, sales contests, and trade shows are some of the promotional tools used to encourage the trade to stock and promote a company’s products.

Publicity/ Public relations.

Publicity refers to non personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. It usually comes in the form of a news story, editorial, or announcement about an organization and/or its products and services. Techniques used to gain publicity include news releases, press conferences, feature articles, photographs, films, and videotapes.

Public Relation When an organization systematically plans and distributes information in an attempt to control and manage its image and the nature of the publicity it receives, it is really engaging in a function known as public relations. A public relations is defined as “the management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interest, and executes a program of action to earn public understanding and acceptance.”

Personal Selling

The final element of an organization’s promotional mix is personal selling, a form of person-to-person communication in which a seller attempts to assist and/or persuade prospective buyers to purchase the company’s product or service or to act on an idea. Unlike advertising, personal selling involves direct contact between buyer and seller, either face-to-face or through some form of telecommunications such as telephone sales. This interaction gives the marketer communication flexibility; the seller can see or hear the potential buyer’s reactions and modify the message accordingly. The personal, individualized communication in personal selling allows the seller to tailor the message to the customer’s specific needs or situation. Personal selling also involves more immediate and precise feedback because the impact of the sales presentation can generally be assessed from the customer’s reactions.

When we come to our case of Plastic Industries Inc., considering the facts outlined regarding the

market, it would have been most productive if the company used the under mentioned kinds of

promotional mixes:

1. Publicity


As indicated in the case the plastic pipe has been considered as being fragile and non

durable with having a negative image by the users and middle men. Therefore the

company here must seek to develop awareness and create a positive image for its product

for the home construction industry; it can solve this cited problem through the use of

publicity. Using publicity it can change the bad image of its pipe product developed in

the public. As it is known one of the major advantages of publicity over other forms of

promotion is to create credibility among target customers. Hence trough the use of

publicity Plastic Industries Inc can overcome the current challenges faced in the market

with prospective buyers. As part of its publicity campaign the company can sponsor

major charitable events or participate exhibitions to build image in the minds of the

consumer

2. Public Relations

No standard of quality is set for the plastic pipe and the need for building codes that

permit plastic pipe as substitute for metal is the big problem the company is facing. Using

public Relation by its CEO and other senior marketing management staffs, the company

should strive for the amendment of the building codes in most cities to permit the use of

plastic pipe as a substitute for metal or other materials and also for setting quality

standard for the plastic pipe.

3. Sales Promotion

The other promotional mix that would have been used by the plastic manufacturer is the

use of sales promotion such as free samples to test its newly produced product and

change their attitude towards the product and build positive attitudes. Since it has been

observed in the market that users and middlemen have great fear over the product

offering free samples of plastic pipe to them would have been very appropriate in

changing their attitude and building their trust.

4. Advertising

Here the company can use promotions such as in-store displays and consolidate trade

magazines advertisements to ensure brand identification throughout its prospective

buyers and thereby consolidate its image in the minds of construction firms especially


Question no 3 Should the company go after the home market?

Before going through the question it is better to see the different marketing expansion strategies and other literatures available in marketing for firms wanting to expand their marketing activities and here in our case Plastic Industries Inc.

Planning New Businesses, Downsizing Older Businesses

Corporate management often desires higher sales and profits than indicated by the projections for

the SBU portfolio. The question then becomes how to grow much faster than the current

businesses will permit. One option is to identify opportunities to achieve further growth within

the company’s current businesses (intensive growth opportunities). A second option is to identify

opportunities to build or acquire businesses that are related to the company’s current businesses

(integrative growth opportunities).A third option is to identify opportunities to add attractive

businesses that are unrelated to the company’s current businesses (diversification growth

opportunities).

➤ Intensive growth. Ansoff has proposed the product–market expansion grid as a framework

for detecting new intensive growth opportunities.11 In this grid, the company first considers

whether it could gain more market share with its current products in current markets (market-

penetration strategy) by encouraging current customers to buy more, attracting competitors’

customers, or convincing nonusers to start buying its products. Next it considers whether it can

find or develop new markets for its current products (market-development strategy). Then it

considers whether it can develop new products for its current markets (product-development

strategy). Later it will also review opportunities to develop new products for new markets

(diversification strategy).

➤ Integrative growth. Often a business’s sales and profits can be increased through backward

integration (acquiring a supplier), forward integration (acquiring a distributor), or horizontal

integration (acquiring a competitor).

➤ Diversification growth. This makes sense when good opportunities exist outside the present

businesses. Three types of diversification are possible. The company could seek new products

that have technological or marketing synergies with existing product lines, even though the new


products themselves may appeal to a different group of customers (concentric diversification

strategy). Second, the company might search for new products that appeal to its current

customers but are technologically unrelated to the current product line (horizontal diversification

strategy). Finally, the company might seek new businesses that have no relationship to the

company’s current technology, products, or markets (conglomerate diversification strategy).

Basic strategic planning

Competitive strategies typically depend on the market environment and the positioning and

product portfolio of the existing players. These are the basics:

Reduce price to penetrate an existing market. By introducing a product at a lower price

than the pioneer’s, a latecomer can attract new customers who would not have otherwise

purchased such a product in effect expanding the total market. Reduced price can also

induce the pioneer’s current customers to switch. Still, this strategy is likely to result in

reduced margins for the new entrant compared with other players in the market, unless

the new entrant’s cost of production is relatively cheaper. This can be adopted by both

the incumbents and pioneers.

Improve a product or service, with focus on a niche market. Companies can compete by

being innovative in the marketplace. The innovation may be radical or incremental. One

example of incremental innovation is an enhanced version of an existing product. The

enhanced product can compete directly with existing products, or it can be positioned to

attract a smaller segment of the existing market. In addition, the improved product or

service can sometimes attract new customers that are not the current target for the

existing product or service.

Target new geographic markets for existing products. As markets mature in the home

base, companies traditionally look outside to more lucrative markets.

Develop new channels of distribution to access new markets or better penetrate existing

ones. Going global is not the only solution. Sometimes the risk and the investment

required to penetrate international markets may not be worth the return. Focusing on

existing markets, where your company has a good understanding of the environment,


can prove less risky and bring quicker successes. This can be accomplished by

repositioning the product or service through marketing, advertising, packaging and so

on.

In addition to choosing the appropriate marketing strategy, it is crucial to determine the timing of

the introduction of any new product. This is especially true in high-tech industries, in which

product life cycles are short and it is difficult for late entrants to Catch up and extract reasonable

returns. In most cases, if you are entering second or later in such a market, you should do so

immediately after the pioneer.

Marketing strategy framework

Having thoroughly analyzed the various strategies adopted by successful pioneers and later

entrants, we have to formulate strategies for growth, penetration or share retention, as the case

may be. The first component is involves developing an understanding of the dynamics of the

market. The critical areas to be analyzed are:

1) Those fundamental drivers of technology that may cause a significant shift in the market;

2) Changes in governance, such as any shifts in regulatory policies that might have a marked

impact on the industry structure;

3) The size and growth of the potential market, and

4) The competitive profile.

When we come to our case, as part of expanding its current market Plastic Industries Inc is

planning to enter into a home market with its new plastic pipe product.

Yes Plastic Industries Inc should enter the home market because getting a new untapped market

which is 5 times higher than their current market can be a lucrative and highly promising for the

plastic pipe manufacturers. As we have seen from the opinion of the plastic industries Inc

executive manager there exists big market opportunity on the hands of the home construction

market. However this opinion of the manager should have to be substantiated more by

conducting a marketing research in the home market to really check its profitability.


Moreover in order to take over the advantages of first entrance into the home market and gain

high market share the company should enter to the construction market in line with the

marketing research.

When entering the home market first of all the Company should try to create positive attitude on

the general public over the visibility of the product since it is observed in the home market that

the general public image of plastic pipes is that they are easily breakable and would not last as

long as conventional pipe. Hence in order to solve this specific challenge, two ways are

available:

1. As the construction market is becoming attractive the company should perform image

building work through convincing the middle man. One of the best ways to win the

market is through convincing the middle man to take and display the product in the eye

caching location on the retail shop. As a result of this the plastics industries Inc. can

create positive attitude regarding the product.

2. Through convincing the construction company the plastic company can create positive

attitude on the general public as the construction company use the product. But the

product should be in line with good quality because first impression is very lasting for

long time. Therefore the company should provide the product which can substitute the

metal pipe with reasonable quality and price.

As it is known the price of plastic pipe is less than the metal one, hence the company can get

acceptance in the home market through providing product at a lower price through penetration

pricing strategy. The company can set a low initial price in order to penetrate the market quickly

and deeply to attract a large number of buyers quickly and win a large market share. By

introducing a product at a lower price than the metal pipe producer, the company can attract new

customers in effect expand the total home market.

Finally it is recommendable that the Plastic Industries Inc. should develop a full fledged

marketing strategies taking into account of those fundamental drivers of technology that may

cause a significant shift in the home market, changes in governance, such as any shifts in

regulatory policies that might have a marked impact on the industry structure, the size and

growth of the potential market, and the competitive environment.


Question no 4Would the job of the salesperson be changed if entry is made into the home

construction market?

The role of personal selling varies from company to company and also from market to market.

Some firms have no sales people at all, for example, companies that sell only through mail-order

catalogs. However the use sales person have become inevitable in most markets in recent times

In general the main job of the sales person involves:-

1. Prospecting and Evaluating

Seek names of prospects through sales records, referrals etc., also responses to advertisements.

Need to evaluate if the person is able (Undergraduate degree to attend a graduate program),

willing and authorized to buy. Blind prospecting-rely on phone directory etc.

2. Preapproach (Preparing)

Review key decision makers especially for business to business

assess credit histories

prepare sales presentations

Identify product needs.

Helps present the presentation to meet the prospects needs.

Approaching the Customer

Manner in which the sales person contacts the potential customer:-

-First impression of the sales person is Lasting and therefore important.

-Strive to develop a relationship rather than just push the product.

-Can be based on referrals, cold calling or repeat contact.

3. Making the Presentation

Need to attract and hold the prospects Attention to stimulate Interest and stir up Desire in the

product so the potential customer takes the appropriate Action. AIDA

Try to get the prospect to touch, hold or try the product. Must be able to change the presentation

to meet the prospect needs.

-Three types of presentations:


Stimulus Response Format: Appropriate stimulus will initiate a buy decision, use one

appeal after another hoping to hit the right button...Counter Clerk @ McDonald's "Would

you like fries with your burger?"

Formula Selling Format: (Canned Sales Presentation) memorized, repetitive, given to all

customers interested in a specific product.

Good for inexperienced sales people.

Better with heavily advertised items that are pre sold.

Telemarketing a credit card!!

Need Satisfaction Format: Based on the principal that each customer has a different set of

needs/desires., therefore the sales presentation should be adapted to the individual

customer's needs; this is a key advantage of personal selling vs. advertising.

Sales person asks questions first, and then makes the presentation accordingly.

Need to do homework, listen well and allow customers to talk etc.

4. Seek out objections and address them.

Anticipate and counter them before the prospect can raise them.

Try to avoid bringing up objections that the prospect would not have raised.

Price objection is the most common

Need to provide customers with reasons for the $s, build up the value before price is mentioned

Must be convinced of price in own mind before you can sell to customer.

Get budget info. on buyer before you try to sell, and must know what they want, must sell

service on top of product augmented product--to create value!!

Must know value of product, provide warranties etc.!!

5. Closing

Ask prospect to buy product/products. Use trial closes, Need to be prepared to close at any time.

The following are popular closing techniques:

-Trial Close (Minor decision close)

-Assumptive close (Implied consent close)

-Urgency close

-Ask for the sale close

6. Following Up


Must follow up sale; determine if the order was delivered on time, installation OK etc. Also

helps determine the prospects future needs.

In our case, Plastic Industries Inc used 3 sales engineers plus one factory representative to sell to

its product to major industrial users. But now the company is planning to sell the products to the

new market, home construction market. This market is considered to be a really big market for

plastic industries Inc, which is five times as large as the present market. So first the company

needs to employ an additional competent sales force able to overcome the possible challenges

that may arouse from this market segment. Moreover the sales force should focus on areas where

there are higher house construction activities and construction companies placed

As clearly indicated in the case, neither the users nor middle men were interested in the product.

So compared to the job of sales persons in the oil industry market, in which the product is

already accepted, the job of the sales person must have to be changed in entering into this

market.

In this segment, the major job of the sales person become prospecting and evaluating the

potential middle men and users, approach these people and give a detailed presentation about the

product. Hence the major jobs of the sales person become to trigger the need of the buyers. This

target market had an image of plastic pipe was of a product that would easily break and would

not last as long as conventional pipe, so a technical sales person must make a sales presentation

to persuade prospects that the product is durable and conventional by trial and make and must

give a detailed instruction how to use the product easily on their demonstration.

Moreover the job of the sales in this market can also include servicing by providing support and service to the customer in the period up to delivery and also post-sale activities.

Finally to serve this large segment the company needs to build a warehouse or point of sales at a

convenience place to buyers to easily avail the product in the market.

References


Kotler,Philip: Keller,Kevin (2006) Marketing Management (12th Ed).Pearson

Prentice Hall

David A.Aaker, (2001) Strategic market management,6th edition

Kotler, Philip; Armstrong, Gary (2003) Principle of marketing 6 th Ed.New

Delhi: prentice-Hall of India PLC.

Philip Kotler, Marketing Management, Millennium Edition

http://www.udel.edu/alex/chapt20.html

Wikipedia, the free encyclopedia


case study plastic

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