Wentworth Industrial Cleaning Supplies

Topics: Marketing, Dollar, Approximation Pages: 2 (430 words) Published: March 22, 2012
Actual Market Share
The size of the Janitorial Chemical Market is = $1200 Million WICS addresses 75% of the market needs through its high quality products. Therefore the relevant market size for WICS is = 0.75*1200 = $900 Million Sanitary Supply Distributors deliver 65% of the end user dollars. Therefore the market access to SSD is = 0.65*900 = $585 Million It should be noted that according to Trade Association data, on an average 5500 SSDs are responsible for the above sales. WICS has 400 SSDs under its disposal. Therefore the 400 SSDs would have a distribution reach of = (585*400)/5500 = $42.54 Million These 400 SSDs have product coverage of 65%. Therefore the dollar sales of WICS = 0.65*42.54 = $27.65 Million Of the total sales made by WICS, approximately 10% is made through direct calls. Therefore the total sales made by WICS = 27.65/0.9 =$30.72

Therefore the actual market size of WICS = ($30.72/$900)*100 = 3.41% Potential Market Share
1) Solution Proposed by Mike Toner
Increase 2 SSDs per Area Manager
Total AM =135
Total SSD Now = 400
Average SSD per AM = Approx 3
Proposal: Increase Average SSD to 5

Therefore total SSDs would be 135*5 = 675
Now with 675 SSDs, the distribution reach of WICS would be = (585*675)/5500 = $71.79 Million These 675 SSDs have product coverage of 65%. Therefore the dollar sales of WICS = 0.65*71.79 = $46.66 Million Of the total sales made by WICS, approximately 10% is made through direct calls. Therefore the total sales made by WICS = 46.66/0.9 =$51.85

Therefore the actual market size of WICS = ($51.85/$900)*100 = 5.76% 2) Solution Proposed by Charlotte Webber
Cover 100% of the product class
Since the aim is to cover 100% of the product class, the relevant market size would be $1200 Billion. Now, the SSDs would have a distribution reach of 0.65*1200 = $780 Million If 75% of market needs are covered by 400 SSD, then 100% product class would be covered by (100/75)*400 = 533 SSDs Therefore 533 SSDs would serve a...
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