Mb Biz Case
Maison Bouygues
1. How is the market of single-family homes in France in 1990? * Negatively impacted by the rise of interest rate for financing (15%). * Negatively impacted by the overall economic crisis (unemployment at 10%). * Negatively impacted by Government policy (reduction of funding mortgage assistance). * Sales drop (no figures for 1990 but expectation of -15/20% for 1991).
What are the specific characteristics of this type of purchase? * Require the customer to arrange the financing with mortgage (90%), MB provides a bank support. * Require the customer to preliminary buy a plot of land. MB provides a service for land procurement. * Require significant amount of money available for initial down-payment. * One time transaction.
2. How would you assess Maison Bouygues’ position in the market? * Leading position (N°1) as largest builder of single family home. * High-end positioning. * Highest brand awareness (unaided and aided). * Average brand image (and declining). * Seems to offer the best warranty. * Is perceived has national brand (not local neither regional) and therefore should address its marketing plan and budget accordingly.
What problems does Maison Bouygues have? * Difficulty to organize marketing effort due highly fragmented competitors. * Cost structures are 10 to 15% higher vs. competitors. * Very high turnover for basic salesperson (120%). * Sales to date are 20% lower than S/F.
3. What would you recommend to Jean Gallet regarding the sales force? * Reduce sales force by 20% (cost structures are too high and better selection of motivated sales person thanks to national recruiting program instead of large recruiting). * Recruit 100 meeting arrangers (call-center) in order to selection, sort-out and prioritize prospects for the initial meeting, thus increasing the prospect yield for salesperson (increasing their incentive and therefore
1. How is the market of single-family homes in France in 1990? * Negatively impacted by the rise of interest rate for financing (15%). * Negatively impacted by the overall economic crisis (unemployment at 10%). * Negatively impacted by Government policy (reduction of funding mortgage assistance). * Sales drop (no figures for 1990 but expectation of -15/20% for 1991).
What are the specific characteristics of this type of purchase? * Require the customer to arrange the financing with mortgage (90%), MB provides a bank support. * Require the customer to preliminary buy a plot of land. MB provides a service for land procurement. * Require significant amount of money available for initial down-payment. * One time transaction.
2. How would you assess Maison Bouygues’ position in the market? * Leading position (N°1) as largest builder of single family home. * High-end positioning. * Highest brand awareness (unaided and aided). * Average brand image (and declining). * Seems to offer the best warranty. * Is perceived has national brand (not local neither regional) and therefore should address its marketing plan and budget accordingly.
What problems does Maison Bouygues have? * Difficulty to organize marketing effort due highly fragmented competitors. * Cost structures are 10 to 15% higher vs. competitors. * Very high turnover for basic salesperson (120%). * Sales to date are 20% lower than S/F.
3. What would you recommend to Jean Gallet regarding the sales force? * Reduce sales force by 20% (cost structures are too high and better selection of motivated sales person thanks to national recruiting program instead of large recruiting). * Recruit 100 meeting arrangers (call-center) in order to selection, sort-out and prioritize prospects for the initial meeting, thus increasing the prospect yield for salesperson (increasing their incentive and therefore