Jindi Enterprise

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Question 1: Consider the sales process in each market (low-end residential, high-end residential and industrial). How effective Jindi’s sales and sales management practices are in the first two markets? What should they do to be effective in the industrial market?

Jindi’s sales and sales management practices are more effective on the Low-end residential market than on the High-end. This is due to several reasons, mostly in terms of the approach on how to obtain sales leads. We can clearly see that the firm does mostly “Direct Walk-ins” instead of “Targeted Promotions”. While all sales engineers patrol the streets looking for construction sites to “walk-in”, Ma is the only person assigned to do the 80% of the “targeted promotions”.

The method of “walk-in” is best suited for the low-end market, and this is the most important reason why Jindi has been doing well in there but not on the High-end.

On the Low-end market, the accessibility is much easier, since projects are executed by small firms or individuals, whose main concern is price, delivery time and proximity (because it’s a regional market), making these the Key Success Factors (KSF). Besides, these contractors are free to choose the HVAC vendors, often still during construction or almost near its end.

However, on the High-end market, it’s usually the architectural design firms that choose the HVAC vendors, when designing projects, way before actual construction. These are usually large companies that are well-known in the market. HVAC products had to be decided to be included on the design from the beginning, so delivery time is not a big issue, since there is much time to schedule the manufacture. The KSF here are the connections and credibility, which Jindi lacks, rendering this market very difficult to access.

Given the characteristics of these markets it is clear to see why Jindi just does well in the Low-end. Since Jindi’s sales leads are mostly “walk-ins”, these will represent mostly clients from that market, since only that one may have on-going constructions still needing HVAC products, while on the high-end those have been decided previously from a range of more well-known manufacturers.

Another reason is due to the fact that Jindi is very focused on the decision of price and delivery time, and is well located, which complies with the necessary KSF for the low-end, but not for the high-end. Besides, Ma makes the mistake of focusing on those factors even for Targeted Promotions, when in fact those customers are more concerned with technical issues.

Another constraint to the lack of access to the High-end is the lack of connections, since the “generating business” task is too concentrated on Ma, while the sales engineers are too busy, not only finding sales leads, but also providing technical support, customer training, installation, and on-site service and maintenance. Yet again, these tasks are beneficial for the Low-end market that has these technical needs but sales engineers could be also doing Targeted Promotions to more profitable clients. It might be more costly, but given the engineers are more comfortable to do this way, it would be more efficient to have a whole team for this purpose and would prove to increase awareness of Jindi in the market.

Jindi should really consider to change its practices given the opportunities: the Low-end market, just accounts for 30% of new construction, is based mostly in small-scale buildings, and small investors, the projects done privately by small firms – everything is small. The High-end market however would be a larger opportunity for Jindi since the price is usually 20 to 30% higher, and Jindi would not have many increased costs by producing to this market.

As for the industrial market, the KSF are also connections, references and customization, but also quality and customer support which Jindi already excels at. So Jindi should be concerned on building its network for the Industrial...
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