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Advantages of personal selling in marketing
Automotive industry
Automotive industry
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Executive Summary
Duncan Industries is a company that prides itself on quality, innovation, safety, and customer service. They offer a broad selection of high-quality lifts that include the necessary features so that many different automotive tasks can be accomodated. Each lift is created with this particular purpose in mind and backed by an exclusive 5 year warranty. The commitment of Duncan industries to their lifts has caused the company to grow at an extremely fast rate in both the Canadian and United States (U.S.) markets. This high-growth is a key component of the company’s business strategy and needs to be maintained. Currently there are three feasible options to this problem. First, the company could focus its attentions towards improving its relationship with its wholesaler in the United States causing the wholesaler to push the Duncan Lift more aggressively. Another option would be to increase personal selling attempts made by Duncan employees to key states within driving distance of their Lancaster factory. The third option is to expand into the European market. Due to the limited information and the undeveloped potential of the North American market Duncan Industries should devote its resources to growing and solidifying its share of the North American market.
Mission Statement
Duncan Industries is a growing company committed to maintaining rapid growth in volume and profit and continuing to be a leader in product innovation, quality, and support in the automotive aftermarket industry.
Problem Statement
• To evaluate the practicality of expansion into Europe by means of direct investment, licensing, or joint venture or the escalation of efforts to expand into the existing North American Market a...
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...mendations
After examining the three alternatives it appears that based upon the current information the best course of action would be to work more closely with the U.S. wholesaler to “push” the Duncan Lift and increase its sales and work out an agreement so that the Duncan can sell to the Eastern U.S. states directly from their factory in Lancaster. This is the best alternative because even though it does not have the shear size as the European market Duncan has already established relationships with the major manufacturers and distributers (something that proved to be a long process) and already have facilities in North America. It will not have the capital expenses it will have in Europe if it goes with the direct investment approach, it will not have the uncertainty of establishing new relationships or trust in the expertise and efforts of a third party firm.
The facts are that that there are advantages and disadvantages of CNS going global with the product. The advantages are that CNS can attempt to increase its market share and not have to rely on only domestic dollars, partnerships can begin to develop between local suppliers, and they can avoid costs of domestic licensing. The disadvantages are that there are local customs that need to be considered, the lack of name recognition of the brand, there may be stronger global competition, the international company may be used to different marketing, and there may be different trade regulations. The decision for CNS to go global takes careful analysis and an international strategy.
As seen, each option has both pros and cons attached to it. It is best for L.L. Bean to take all approaches in order to expand its business. It is better for the company to focus on the manufacturing expansion and international sales first since they have had some experience in both field already. Once they are settled and sales started to grow, L.L. Bean can move on to the retail expansion. This is the safest way to expand its business while maintaining the company’s brand image. L.L. Bean has a lot of potential to grow, remaining in the presence of Maine and mail order within the U.S. would only waste the talent and limit its growth.
Black & Decker (B&D) is a global manufacturer and the world’s largest producer of power tools, power tool accessories, electric lawn and garden tools, and residential security hardware. The company was a pioneer in innovation and development of power tools and has used that position to build strong brand names that enjoy worldwide recognition. Key Causes for Poor Performance in the Professional-Tradesmen Segment The reason B&D has performed poorly in the professional-tradesmen segment is due to the positioning of the B&D brand in this segment. Poor positioning of the brand has resulted in customer confusion and negatively impacted customer perception of the brand in terms of being a quality product. B&D Performance in the Power Tool Industry Overall Any adjustments to B&D’s strategy in the professional-tradesmen segment must not have an adverse impact on their success in the consumer or professional-industrial segments. Therefore, a thorough understanding of the needs of each segment will be important in building a viable strategy to challenge Makita in the professional-tradesmen segment, while continuing to maintain share in the other two segments. _Consumer _Segment Professional-Tradesmen Segment This category consists of professionals who are buying a product for their own use on a job site. Their livelihood depends on the quality and performance, as well as the reflection on their skills that using a particular tool brings from others on the job site. Since they are purchasing their own tools, this segment needs this high quality performance at a reasonable price. However, since Makita and Milwaukee are both priced higher than B&D and are seeing greater success in this category, tradesmen are clearly willing to pay more for a product they perceive will be more effective for their use. Key needs for this market segment include: Performance and quality - {text:change} does the job needed to be done, doesn’t break down, produces high-quality results and more efficiently gets the job done. Reliability and durability - does the job every time and can be used for an extended period of heavy continual use. Safety Support from the Manufacturer – if the product breaks or performs poorly, access to replacement parts and service will be key in maximizing performance up-time.
They won a good name for itself in the XX century by selling British goods exclusively becoming permanently partners of the British manufacturers. They pursued a policy of full refund for unused things regardless of the purchase date. In 2005, the company allowed to return only items within 90 days, and in 2009 -- for 35 days. There was no any other British company held such a loyal policy of return. Starting from the 2000s, the company has developed other fields including food, household goods, furniture, technologies, beauty products, financial services.
Lowe’s should renew its efforts to acquire Rona since opting to enter the Canadian market as a green-field is more costly. By acquiring Rona, an already established company operating 79 big box locations and 700 smaller stores, Lowe’s would avert the costs of producing French ads and signage for Quebec customers, building French website as well as changing its weight metrics and measurement units. This will also give the company a chance to penetrate the Canadian market and strengthen its distribution network and cost-effectiveness and thus boost its operating efficiency. Moreover, gaining a chunk of
Adding to overseas sourcing so that lead time could be faster for design and production they could also divide the business up and have different locations for orders and new products to make business faster and
Through innovation, high quality design and production, along with effective branding, European companies have an advantage - the ability to sell products at a premium price. Europe makes it, fake it then east is how much business would phrase it. This is about ...
...ales Force optimization. Outsourcing customized machinery based products. Importing raw material rather than using domestic steel. Promoting plastic strapping as a way to the future. Adopting price flex strategy so as to incorporate cost leadership and umbrella pricing. Strategically reducing number of customized products so as to reduce costs. Capitalize on the Services aspect strapping and packaging industry. Maintain and regain its lost customers by identifying their needs more effectively. Empowering sales force on account of increase in contribution margins. So to meet firm’s objective of increased profits, Signode should stimulate further volume growth by taking actions to convert nonusers into users, to increase use frequency among current users, or to expand into untapped or underdeveloped markets.
The furniture company Somerset needs to retain its customer service record and remedy any of its global supply chain issues before it has an adverse effect on the brand and start losing customers. With a frequent change in the product catalog, keeping an excessive inventory will cut its profit and some of the product may become obsolete even before the furniture hits the retail outlet stores. In order to achieve profit and success, business employee many strategies and the supply chain strategy are one of the operational management techniques that use analytical decision making process to achieve the company goals and provide tools to effectively compete in the market (Taylor and Russell, 2014).
Ford’s production plants rely on very high-tech computers and automated assembly. It takes a significant financial investment and time to reconfigure a production plant after a vehicle model is setup for assembly. Ford has made this mistake in the past and surprisingly hasn’t learned the valuable lesson as evidence from the hybrid revolution their missing out on today. Between 1927 and 1928, Ford set in motion their “1928 Plan” of establishing worldwide operations. Unfortunately, the strategic plan didn’t account for economic factors in Europe driving the demand for smaller vehicles. Henry Ford established plants in Europe for the larger North American model A. Their market share in 1929 was 5.7% in England and 7.2% in France (Dassbach, 1988). Economic changes can wreak havoc on a corporation’s bottom line and profitability as well as their brand.
Introduction: Toyota Motor Corporation is a very successful automobile manufacturer that is recognized globally. They have continued to obtain and retain a competitive advantage over their counterparts, despite recalls over many years. Regardless of recalls, Toyota has been quick to rectify their shortcomings and continue to lead the automotive industry with their innovative measures. In this essay, I will discuss key internal factors for Toyota. Within those factors will include Toyota’s core competencies, which are what they do really well in comparison to their competition, three of their strength’s, which will include their posture within the automobile market and their heavy focus on research and development, and two of their weaknesses.
Products are not standardized and vary by country in terms of type, packaging and specification. This increases production time, production costs, lead tim...
Throughout time the business focus of OTIS have changed. Today the focus has moved from the manufacturing area towards a more total solution, where the most important is to provide a high class customer service. This is to be seen through their vision: “To become the recognized leader in service excellence among all companies – not just elevator companies – worldwide.”
Sakarya, S., Eckman, M. & Hyllegard, K. H. (2007). Market Selection for International Expansion - Assessing Opportunities in Emerging Markets. International Marketing Review, 24(2), 208-238.
Honda, like other automotive companies, also came to the conclusion of firming a joint venture. At the moment, Honda was already famous for motorcycles in UK, but it was less well known in terms of the automobiles. While Honda’s cars enjoyed reputation for good quality and durability, the import restrictions limited its success it the European market. However, the European market was essential for the company’s global expansion. With the joint venture, Honda could avoid the restrictions on the import quota by assembling cars locally, because these cars would be considered locally produced. Moreover, a local partner could assumedly offer a better insight of the market.