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A Case Study Report On Plastic Industries Inc 1 1
A Case Study Report On Plastic Industries Inc 1 1
Industries Inc.
Prepared by:
October 2011
Table of Contents
SWOT Analysis
Sales management is a business discipline which is focused on the practical application of sales
techniques and the management of a firm's sales operations. It is an important business function
as net sales through the sale of products and services and resulting profit drive most commercial
business. These are also typically the goals and performance indicators of sales management.
Sales manager is the typical title of someone whose role is sales management. The role typically
involves sales planning, human resources, talent development, leadership and control of
resources such as organizational assets.
Sales planning
The three recruitment tasks used in sales management are Job analysis; Job description and Job
qualifications
Job analysis is performed to specify the certain tasks that a salesperson would be responsible for
on a daily basis. It should identify what activities are deemed as being vital to the success of the
company. Any person associated with the sales organization or the human resources department
could carry out the analysis as well as an outside specialist (Spiro, pp.134). The person that is
responsible for completing a job analysis should have an in-depth comprehension of the daily
activities of the salespeople.
This job analysis is then written in an explicit manner as a job description. The general
information consists of:
1. Title of job
2. Organizational relationship
6. Job demands
7. Hiring specifications
An effective job description will identify compensation plans, size of workload, and the
salespeople’s duties. It is also primarily responsible for hiring tools such as application forms
and psychological tests.
The most difficult part of this process would be the determination of job qualifications. A reason
for this difficulty is because hiring affects a company’s competitive advantage in the market as
well as the amount of revenue. Additionally, there should be a set of hiring attributes that is
associated with each sales job that is within a company. If an individual does not excel in their
assigned territory, it could be due to external factors relating to that person’s environment.
Sales reporting
The sales reporting includes the key performance indicators of the sales force. The Key
Performance Indicators indicate whether or not the sales process is being operated effectively
and achieves the results as set forth in sales planning. It should enable the sales managers to take
timely corrective action deviate from projected values. It also allows senior management to
evaluate the sales manager. More "results related" than "process related" are information
regarding the sales funnel and the hit rate.
Sales reporting can provide metrics for sales management compensation. Rewarding the best
managers without accurate and reliable sales reports is not objective. Also, sales reports are made
for internal use for top management. If other divisions’ compensation plan depends on final
results, it is needed to present results of sales department’s work to other departments.
Finally, sales reports are required for investors, partners and government, so the sales
management system should have advanced reporting capabilities to satisfy the needs of different
stakeholders.
Personal selling is oral communication with potential buyers of a product with the intention of
making a sale. The personal selling may focus initially on developing a relationship with the
potential buyer, but will always ultimately end with an attempt to "close the sale"
Moreover, the role of the personal selling in the case of new product is outlined as follows:
It is because of personal selling that customers come to know about the use of this new
product in the market. Sales person demonstrate the product before the prospective
buyers and explain the use and utility of the products.
Personal selling gives an opportunity to the customers to put forward their complaints
and difficulties in using the product and get the solution immediately. Moreover, the
Question no 2
What kind or kinds of promotion would probably have been most productive
for plastic industries?
Promotion has been defined as the coordination of all seller initiated efforts to set up channels of
information and persuasion in order to sell goods and services or promote an idea.
Elements of Promotion
Traditionally the promotional mix has included four elements: advertising, sales promotion,
publicity/public relations, and personal selling. However, direct marketing as well as interactive
media as major promotional-mix elements that modern-day marketers use to communicate with
their target markets. Each element of the promotional mix is viewed as an integrated marketing
communications tool that plays a distinctive role. Each may take on a variety of forms and each
has certain advantages.
The no personal component means that advertising involves mass media (e.g., TV, Radio,
magazines, newspapers) that can transmit a message to large groups of individuals, often at the
same time. The nonpersonal nature of advertising means that there is generally no opportunity
for immediate feedback from the message recipient (exception direct-response advertising).
Interactive/Internet Marketing
Interactive media allow for a back-and-forth flow of information whereby users can participate
in and modify the form and content of the information they receive in real time. Unlike
traditional forms of marketing communications such as advertising, which are one-way in nature,
the new media allow users to perform a variety of functions such as receive and alter information
and images, make inquiries, respond to questions, and, of course, make purchases. In addition to
the Internet, other forms of interactive media include CD-ROMs, kiosks, and interactive
television. However, the interactive medium that is having the greatest impact on marketing is
the Internet, especially through the component known as the World Wide Web.
Sales Promotion
Sales promotion which is generally defined as those marketing activities that provide extra
value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate
immediate sales. Sales promotion is generally broken into two major categories: Consumer-
oriented and trade-oriented activities.
Consumer-oriented sales promotion is targeted to the ultimate user of a product or service and
includes couponing, sampling, premiums, rebates, contests, sweepstakes and various point-of-
purchase materials. These promotional tools encourage consumers to make an immediate
purchase and thus can stimulate short-term sales.
Personal Selling
The final element of an organization’s promotional mix is personal selling, a form of person-to-
person communication in which a seller attempts to assist and/or persuade prospective buyers to
purchase the company’s product or service or to act on an idea. Unlike advertising, personal
selling involves direct contact between buyer and seller, either face-to-face or through some form
of telecommunications such as telephone sales. This interaction gives the marketer
communication flexibility; the seller can see or hear the potential buyer’s reactions and modify
the message accordingly. The personal, individualized communication in personal selling allows
the seller to tailor the message to the customer’s specific needs or situation. Personal selling also
involves more immediate and precise feedback because the impact of the sales presentation can
generally be assessed from the customer’s reactions.
When we come to our case of Plastic Industries Inc., considering the facts outlined regarding the
market, it would have been most productive if the company used the under mentioned kinds of
promotional mixes:
1. Publicity
As indicated in the case the plastic pipe has been considered as being fragile and non
durable with having a negative image by the users and middle men. Therefore the
company here must seek to develop awareness and create a positive image for its product
for the home construction industry; it can solve this cited problem through the use of
publicity. Using publicity it can change the bad image of its pipe product developed in
the public. As it is known one of the major advantages of publicity over other forms of
promotion is to create credibility among target customers. Hence trough the use of
publicity Plastic Industries Inc can overcome the current challenges faced in the market
2. Public Relations
No standard of quality is set for the plastic pipe and the need for building codes that
permit plastic pipe as substitute for metal is the big problem the company is facing. Using
public Relation by its CEO and other senior marketing management staffs, the company
should strive for the amendment of the building codes in most cities to permit the use of
plastic pipe as a substitute for metal or other materials and also for setting quality
standard for the plastic pipe.
3. Sales Promotion
The other promotional mix that would have been used by the plastic manufacturer is the
use of sales promotion such as free samples to test its newly produced product and
change their attitude towards the product and build positive attitudes. Since it has been
observed in the market that users and middlemen have great fear over the product
offering free samples of plastic pipe to them would have been very appropriate in
changing their attitude and building their trust.
4. Advertising
Here the company can use promotions such as in-store displays and consolidate trade
magazines advertisements to ensure brand identification throughout its prospective
buyers and thereby consolidate its image in the minds of construction firms especially
Question no 3
Should the company go after the home market?
Before going through the question it is better to see the different marketing expansion strategies
and other literatures available in marketing for firms wanting to expand their marketing activities
and here in our case Plastic Industries Inc.
Target new geographic markets for existing products. As markets mature in the home
base, companies traditionally look outside to more lucrative markets.
Develop new channels of distribution to access new markets or better penetrate existing
ones. Going global is not the only solution. Sometimes the risk and the investment
required to penetrate international markets may not be worth the return. Focusing on
existing markets, where your company has a good understanding of the environment,
can prove less risky and bring quicker successes. This can be accomplished by
repositioning the product or service through marketing, advertising, packaging and so
on.
In addition to choosing the appropriate marketing strategy, it is crucial to determine the timing of
the introduction of any new product. This is especially true in high-tech industries, in which
product life cycles are short and it is difficult for late entrants to Catch up and extract reasonable
When we come to our case, as part of expanding its current market Plastic Industries Inc is
planning to enter into a home market with its new plastic pipe product.
Yes Plastic Industries Inc should enter the home market because getting a new untapped market
which is 5 times higher than their current market can be a lucrative and highly promising for the
plastic pipe manufacturers. As we have seen from the opinion of the plastic industries Inc
executive manager there exists big market opportunity on the hands of the home construction
market. However this opinion of the manager should have to be substantiated more by
conducting a marketing research in the home market to really check its profitability.
Moreover in order to take over the advantages of first entrance into the home market and gain
high market share the company should enter to the construction market in line with the
marketing research.
When entering the home market first of all the Company should try to create positive attitude on
the general public over the visibility of the product since it is observed in the home market that
the general public image of plastic pipes is that they are easily breakable and would not last as
long as conventional pipe. Hence in order to solve this specific challenge, two ways are
available:
2. Through convincing the construction company the plastic company can create positive
attitude on the general public as the construction company use the product. But the
product should be in line with good quality because first impression is very lasting for
long time. Therefore the company should provide the product which can substitute the
metal pipe with reasonable quality and price.
As it is known the price of plastic pipe is less than the metal one, hence the company can get
acceptance in the home market through providing product at a lower price through penetration
pricing strategy. The company can set a low initial price in order to penetrate the market quickly
and deeply to attract a large number of buyers quickly and win a large market share. By
introducing a product at a lower price than the metal pipe producer, the company can attract new
customers in effect expand the total home market.
Finally it is recommendable that the Plastic Industries Inc. should develop a full fledged
marketing strategies taking into account of those fundamental drivers of technology that may
cause a significant shift in the home market, changes in governance, such as any shifts in
regulatory policies that might have a marked impact on the industry structure, the size and
growth of the potential market, and the competitive environment.
Question no 4
Would the job of the salesperson be changed if entry is made into the home
construction market?
The role of personal selling varies from company to company and also from market to market.
Some firms have no sales people at all, for example, companies that sell only through mail-order
catalogs. However the use sales person have become inevitable in most markets in recent times
In general the main job of the sales person involves:-
A Case Study Report | Plastic Industries Inc. 16
1. Prospecting and Evaluating
Seek names of prospects through sales records, referrals etc., also responses to advertisements.
Need to evaluate if the person is able (Undergraduate degree to attend a graduate program),
willing and authorized to buy. Blind prospecting-rely on phone directory etc.
2. Preapproach (Preparing)
Review key decision makers especially for business to business
assess credit histories
prepare sales presentations
Identify product needs.
Helps present the presentation to meet the prospects needs.
Approaching the Customer
Manner in which the sales person contacts the potential customer:-
-First impression of the sales person is Lasting and therefore important.
-Strive to develop a relationship rather than just push the product.
-Can be based on referrals, cold calling or repeat contact.
In our case, Plastic Industries Inc used 3 sales engineers plus one factory representative to sell to
its product to major industrial users. But now the company is planning to sell the products to the
new market, home construction market. This market is considered to be a really big market for
plastic industries Inc, which is five times as large as the present market. So first the company
needs to employ an additional competent sales force able to overcome the possible challenges
Finally to serve this large segment the company needs to build a warehouse or point of sales at a
convenience place to buyers to easily avail the product in the market.
References