Alroy Drawer Runners - Essay Example

TABLE OF CONTENTS 1.0 Company background and product description......................................................... 2.0 Developing a relationship strategy............................................................................. 2.1 Salesperson attitude and appearance.............................................................. 2.2 Communication style and implications.......................................................... 2.3 Key points for selling..................................................................................... 3.0 Product strategy......................................................................................................... 3.1 Description of product/created product solution........................................... 3.2 Feature benefits worksheet............................................................................ 3.3 Pricing strategy.............................................................................................. 4.0 Developing a customer strategy................................................................................. 4.1 Description of the typical prospect................................................................. 4.2 Buying motives of the prospect...................................................................... 4.3 CRM strategy development............................................................................ 5.0 Presentation objectives................................................................................................ 5.1 Questions to determine prospect needs........................................................... 5.2 Discussion and demonstration of features/benefits......................................... 5.3 Potential objections and strategy for overcoming them.................................. 5.4 Closing cues..................................................................................................... References 1.0 Company background and product description Alroy Sheet Metals Ltd, founded in 1956, is one of the most successful sheet metal businesses operating currently in the UK. The business’ operational model is inclusive of fabrication of metals such as bending and punching capabilities using precision quality technology. Such technologies include CNC, CAD software, and lathe systems. Support technologies include welding capabilities and cutting using Waterjet systems to ensure rapid and precise metal formations which comply with ISO 9001 quality standards accepted as total quality measures worldwide. Lean manufacturing philosophy ensures more efficient cost controls. Alroy is a leader in manufacture of metal drawer runners that are utilised on furnishings, custom cabinetry and any other product requiring efficient and no-slip drawer slides, hence creating a plethora of opportunities for capturing disparate markets and prospects. What makes Alroy products unique is their durability in construction and powder-coated covering that improves anti-corrosion capabilities and longevity over that of competing drawer runner manufacturers worldwide. 2.0 Developing a relationship strategy Alroy Sheet Metal’s customer is Heritage Home Group LLC, a multi-national organisation specialising in manufacture, design, distribution and retailing of a variety of home furnishings. Heritage is a very high-end producer and marketer of top quality, premium home products under the respected and well-known brand names such as Thomasville, Lane, Broyhill, Pearson and Drexel Heritage. The customer maintains a very broad group of retail channels that include branded retail stores, collaboration with world-renowned interior design agents, mass merchant retailers, and independent retail stores across the world. The relationship between Alroy salespersons and Heritage Home Group is one that is justified through a consultative selling model. Salespersons, in order to add value to the relationship and engage the customer effectively, ask a variety of strategic questions, utilise active listening skills, and illustrate a legitimate care and concern for their problems and needs (Manning, Ahearne and Reece 2012). Relationship development involves more interactivity with customers, face-to-face selling practices, in which productive communications between seller and customer are critical to establishing trust and perceptions of competency in the salesperson and the corporate brand. Salespersons should take on the role as competent proficient sales consultant and, through this consultation, provide a series of effective recommendations that will better service the customer and provide perceptions of total relationship value. 2.1 Salesperson attitude and appearance Heritage Home Group is a premium producer of top quality, high-priced furnishings that appeals to the high financial resource consumer segments. These markets are characterised by attributes associated with conspicuous consumption, a set of attitudes and values in which consumers purchase premium products as a means of illustrating to the social environment that they have attained high class status and wealth. Therefore, it is an expectation of Alroy Sheet Metals that all salesperson engaging and interacting with Heritage representatives maintain the utmost professionalism and debonair physical appearance. It is imperative to maintain the appearance of suaveness and sophistication, maintaining well-groomed attributes, designer ensembles and appropriate, premium accessories as representatives of Alroy. The business will make appropriate reimbursement provisions to ensure all salespersons comply with this very important mandate. 2.2 Communication style and implications Customers develop their impressions of the salesperson or the company based specifically on what is observed regarding what salespersons say and do (Manning et al. 2012). Such impressions are founded on the theory of symbolic interaction in interpersonal communications whereby shared meanings are developed through interpersonal interactions with others. People are motivated and thereby act on these meanings which have been assigned to others and institutions. Hence, it is crucial that salespersons representing Alroy maintain awareness of the most appropriate communications style relevant for Heritage Home Group. In recent years, Heritage has experienced considerable problems with revenue production and the ability to gain more consumer interest in its wide line of high-end brands, which led to revenue loss of 1.74 billion USD in 2008 and bankruptcy restructuring in 2013. Heritage has hired Alroy not only for its top quality product, but for the firm’s decisiveness and competency in contemporary marketing and sales. Hence, directive communications style is most relevant and appropriate for the needs of Heritage Home Group. Representatives of Alroy should maintain a very serious attitude, work to maintain control over consultative agendas in all meetings with the client, and express both opinionated stance and provide frank responses to all customer inquiries. Alroy has been charged with improving the competitive position of Heritage Home Group, therefore aggressiveness in communications is critical to proper relationship development. 2.3 Key points for selling Points Benefits Brand Establishment Differentiate Alroy from competition. The only non-replicable asset a business has is its brand in an environment where competition can easily procure like raw materials and powder-coating processes. Discounting Price conscious B2B buyers require incentive for selecting Alroy over competition. Salespersons are authorised to offer such volume discounts. Guarantees of rapid responsiveness Alroy will reinforce its commitment to excellence in customer relationship management by assigning account representatives who are on-call 24-7 to handle inquiries, delivery problems or other concerns. 3.0 Product strategy Differentiation will be key to success when working with Heritage Home Group. There are many competitors that are readily available for this customer in an environment where the product is relatively homogenous with little distinguishing characters in the competitive industry. Alroy representatives must regularly reinforce to the customer that its products are higher quality which enhances the longevity and durability of home furnishing products over that of competition. 3.1 Description of product/created product solution Alroy Drawer Runners are differentiated through the tangible production processes that govern quality output. With most home furnishing and home cabinetry products that utilise drawer runners, a significant long-term problem is oxidation and corrosion that limits the quality and durability of finished furnishing products. Alroy, however, utilises revolutionary powder-coating processes that enhance the permanence and robustness of drawer runners by a timeframe of nearly 400 percent over competing, non-coated drawer runners in a standardised production industry. Our drawer runners are manufactured from iron-reinforced steel, hence creating a product that is both heavy-duty and can endure significant wear and tear over a long period of time. This durability and protectionism through powder-coating technology provides customers with a higher quality drawer slide that guarantees extensive quality advantages over furnishing competitors. 3.2 Feature benefits worksheet ____________________________________________________________________________ Feature Benefit ­­­­­­­­­­­­­ Iron Reinforced Composition Ensures drawer stability and integrity Powder-coated Exterior Allows furnishings to be displayed in any climactic environment: cold, hot, high humidity – Low risk of drawer degradation. Many competitive products have limited life cycles as a result of inferior drawer runner construction – Serves as a marketing opportunity for quality brand positioning by the customer. ______________________________________________________________________________ 3.3 Pricing strategy Salespersons are authorised to provide the buyer with quantity discounts, establishing a lower price for making purchases in higher volume units (Manning et al. 2012). The current price structure for a single runner is £2.85. Through volume purchasing, in units of 300 or more runners, the pricing structure is reduced to £2.25, a savings of £.60 per runner. This is highly imperative in an environment where competitor products are priced similarly and where the buyer is highly price-conscious as a result of their current financial position in their established markets. This raises the switching costs for selecting a new supplier as competitors are unable to recoup their manufacturing and other overhead costs to establish a similar pricing policy, thus adding value to Alroy. 4.0 Developing a customer strategy Fortunately for Alroy, Heritage Home Group creates finished output based on a solid, quantitative forecasting methodology. Fixed and predictable purchasing behaviour is characteristic of the buyer which allows Alroy to envisage consumption reliability. Needs discovery, from the perspective of the customer, is established based on static forecasting. Salespersons will develop written proposals, developed in consultation with production management, to guarantee responsiveness and timeliness of delivery to the customer. This improves the value-added dimensions of our professional relationship with Heritage. The proposals should address contingencies in the event of any anticipated order fulfilment issues to secure trust and conviction in the supply capabilities of Alroy. 4.1 Description of the typical prospect Heritage maintains many strategic alliances with other home furnishing companies which provides a network for potential new customers. The typical prospect in this industry is focused on quality product suppliers that meet rigorous standards of product value and excellence. The typical prospect maintains expectations for the provision of guarantees of value, quality and salesperson decisiveness in providing procurement solutions. 4.2 Buying motives of the prospect Timeliness of re-supply is the most imperative buying motive of prospects. Salespersons should focus their energies on establishing a straight rebuy methodology in which monitoring of supply deadline compliance is necessary to ensure total customer satisfaction. Competing suppliers will move quickly in the event of customer dissatisfaction (Manning et al. 2012). Evaluation is fundamental to maintaining a competitive position and achieving total customer satisfaction. 4.3 CRM strategy development Alroy must create incentives for prospects and Heritage Home Group to ensure that the customer is loyal to the company. We will be establishing a social media presence which provides customers and prospects with discount codes that are available for one week during a promotional period to take additional price reductions on single and volume purchasing. This will be promoted using e-mail systems that solicit visitation to the site to collect the code. B2B customers often prefer face-to-face meetings. The company will be working with LiveWorld, a social media and video conferencing service, to ensure that customers can interact with a real face, sales representatives that will be available for virtual meetings to enhance relationship management. 5.0 Presentation objectives Building positive rapport which leads to establishment of seller credibility Build the foundation of trust in Alroy 5.1 Questions to determine prospect needs ­­­­­­­­­­­­­­­­­­­­­­Pre-planned Questions to Discover Buying Motives 1. As I understand it, you need to illustrate to retail buying facilities that you have complied with industry-generated quality standards? 2. Are you aware that retailers must regularly report on their rationale for selecting their chosen seller to the Environmental Protection Authority (EPA)? 3. What might happen in the event that the EPA disagrees with YOUR buyer assessment of selection choice and imposes fines on YOUR customer? 4. What if Alroy could establish a shared extranet system that provided you immediate access to compliance statistics? 5.2 Discussion and demonstration of features/benefits Discussion and demonstration should include: 1. That each production unit will be delivered with EPA certifications for compliance. 2. That each batch run delivered contain statistical diagrams of product integrity and QA testing data. 3. Delivery of several units with each order actually tested in QA laboratories (bent samples) along with statistical information showing the volume of pressure applied necessary to achieve said curvature. 5.3 Potential objections and strategy for overcoming them The customer may object, offering that they lack internal technology support for extranet utilisation. In the event of this objection, salespersons should respond accordingly: We will be very happy to coordinate training, at no cost to your organisation, to facilitate knowledge of extranet technologies and also offer daily support services in the event of system uncertainties. The customer may also suggest that they lack the internal scientific competencies to evaluate QA data and other statistical reports generated with each batch delivery. Salespersons should respond to this objection accordingly: We have established a software program that turns raw data into layman’s terms, presenting the information in easy-to-read graph format and terminology that could be easily evaluated by any member of your organisation regardless of their talents. We will provide this software, of course, at no additional charge. 5.4 Closing cues “That sounds great” “Wonderful. Let’s sign the appropriate paperwork and we’ll get the first shipment out to you immediately” “Well, our team members are VERY busy at the moment and it would be difficult to coordinate the type of training you suggested on extranet and statistics analyses” “No problem! Our people understand this fully and have developed a system of training delivery that can be learned through e-mail and mobile technologies. Which of these methods would be more preferable?” The prospect reads through the delivered proposal and offers a look of dissatisfaction. “I understand that the systems of quality compliance are difficult and demanding processes. Let’s sign the order form and then get together later this week to discuss how we can make this process easier and more fluid” References Manning, G.L., Ahearne, M. and Reece, B.L. (2012). Selling today: partnering to create value, 12th edn. Upper Saddle River: Pearson Education. Read More