Wentworth Industrial Cleaning Supplies is an organization whose potential is currently clouded by their lack of competitive strategy. Through analysis of their current situation, several key issues were identified: * Market Research is ineffective and unimplemented
* Product line ignores majority of market
* Roles of key personnel are illogical and inefficient
* Relations with distributors are hostile and unsustainable * Profits and growth is stagnant in an advancing industry * Communication mechanism is fragmented
After evaluation of the alternative courses WICS has for consideration, recommendations to address and rectify each issue were chosen. Through assigning specific tasks to the marketing department and enabling a communication mechanism along the personnel chain, objectives and opportunities can be shared. By making strategic role changes to the territorial and area managers, redundancies can be eliminated and the goal of developing and maintaining a unified network can be achieved. Through the addition of a big-tickets sales team and the outsourcing of economy chemical for use in private labels, WICS can gain a larger market share and sustain increased profits for years to come. In combination, these actions provide the basis for the development of a large-scale, well-branded organization with responsiveness to growth and opportunities in the market.
Issues with Current Operations
WICS lacks the marketing insight to target clients appropriately. As a solely premium brand, market research is crucial to customer perception and increasing the 40% share of customers willing to pay premium prices for WICS products. Moreover, new lines or line extensions are difficult to launch when there is no market research. In an evidently growing industry, the inability to provide an appealing value proposition to 60% of the customers has caused WICS to halt sales growth and struggle to keep its current market share. Furthermore, the justified frustrations of the area managers cannot be resolved until WICS is able to give them appropriate job descriptions and requirements contingent on the nature and changing behaviour the industry derived from market research.
“Only 8 percent of customers describe their experience as superior, yet 80 prevent of companies believe the experience they provide is indeed superior” - Roger J. Best
Opportunity for Growth
Distributors claim “WICS products are basically no better than anyone else.” This is a dangerous mentality when they are currently responsible for actively promoting and marketing WICS products. Their products, priced in the premium category, are reliant on promotion to build a strong perceived value. Furthermore, only 40% of consumers are willing to pay premium prices, leaving 60% of end users uninterested in WICS. This presents a unique marketing challenge for WICS- the need to expand to reach a greater share of the market while upholding their image as a premium manufacturer.
For managers, a lack of job autonomy creates a feeling of resentment towards superiors and inhibits productivity.(Quote OB Book). Furthermore, the current incentive program stresses disproportionate selling techniques by placing heavy emphasis on hunting at the expense of neglecting farming attained accounts. This focus on hunting new accounts has resulted in acquiring unprofitable accounts that do not allocate a sufficient amount of their total purchases to WICS products. It is expensive and frustrating for distributors to maintain these clients, and they ultimately add little value to the corporation. Finally, the allocation of area manager duties (exhibit 6) results in low productivity by emphasizing ineffective selling techniques and needlessly excessive time spent on demonstrations
Internal communication is crucial for any functioning...