Marketing Strategy Assignment for 2nd

Mid Term

Submitted to:
Farhana Rahman
Lecturer
Department of Organization Strategy &
Leadership University of Dhaka

Submitted by:
Sadia Islam
ID: OSL-FM-14
Batch: 2nd
Department of Organization Strategy &
Leadership University of Dhaka

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Table of Contents

Executive summary.......................................................................................................................

3 Wentworth Industrial Cleaning Supplies’ background

............................................................ 4 Situational Analysis

...................................................................................................................... 4 Problems

Identification ................................................................................................................ 5 Proposal

analysis........................................................................................................................... 6

Recommendation...........................................................................................................................

6 Conclusion

..................................................................................................................................... 7
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Executive summary

This case is all about Wentworth Industrial Cleaning Supplies which is a division of Wentworth
International, competing in janitorial maintenance chemical market. This janitorial maintenance
market is highly fragmented and this is a segment of the institutional maintenance chemical
market. In this report, it has described the problems of WICS and analysis some alternatives
which can be solve these problems. The main problem of WICS is reducing the value of market
share. There are some proposals which are given by five managers. These proposals are really
helpful for the WICS.
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Wentworth Industrial Cleaning Supplies’ background Wentworth industrial
cleaning supplies known as WICS, which is a part of Wentworth International and competing in
the janitorial maintenance chemical market. It is located in Lincoln, Nebraska. J. Randail
Griffith is a vice president of marketing in WICS. There are four segments such as – Janitorial
maintenance products, food service maintenance products, textile maintenance products and
industrial maintenance products in the institutional maintenance chemical market. In 2007, the
total industry sales volume is approximately $2.5 billion. 75% of the market product is janitorial
maintenance chemical product in WICS. The janitorial maintenance chemical market is highly
fragmented such as- special purpose cleaners, disinfectants, general-purpose cleaners etc. WICS
utilize a distributor network which is sanitary supply distribution (SSDs). SSDs deliver 65% of
end user dollars and 35% of direct to end user. WICS places total reliance on selling through the
SSDS, a small amount of sales (less than 10%) are made direct. WICS has almost 20,000
customers. The SSD carries other’s product as WICS’s.

WICS uses a sales force of 135 area managers, 21 territory managers and 4 regional managers
and 400 distributors. Mainly WICS produces products that have average to premium
performance ratings but WICS has no product in economic class.

Area managers (AM) do the 80% works of WICS like- assist and train SSD personnel,
demonstrate new products, make cold calls on end-users, administrative affairs etc. Area
managers are repaid with a straight salary and increased it by various types of incentive
programs and bonuses.

Situational Analysis
Wentworth Industrial Cleaning Supplies (WICS) is facing a slowdown in growth. The sales of
WICS products have decreased though total sales volume has increased for the industry. Also the
share of the growth has decreased. So, J. Randall Griffith has been directed to identify what
factors are obstacle growth and to institute a program that will facilitate further expansion. WICS
has focused on market development. WICS is considered an industry giant though the company
does not fulfil a complete line of Janitorial Chemical. Because of emphasizing on selling
technical products, demonstrations, and cold calls, sales cost are high (10 to 15 percent) and
distributors receive high margin (30 to 40 percent). On the other hand, WICS, competitors offer
SSD’s low margins (15 to 2o percent) and incur low sales costs (5 to 8 percent).
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Problems Identification
The main problem of WICS is decreasing the value of market share. There are some reasons
behind this decreasing market share such as

Slowdown in growth and sales volume: Suddenly, WICS’s growth rate is decreasing and sales
of all product have leveled off far below the volume expected by management. This is one of the
big problems of WICS.

Focus on only premium and average market size: WICS produces products that have average
to premium performance ratings. WICS has no products in the economy class. Again, some
various factors WICS’s coverage in the average and premium classes is not complete. WICS just
emphasis on premium and average products results in providing only 75% of market product
needs.

High selling cost: WICS selling cost is high (10 to 15 percent) because of emphasizing on selling
technical benefits, demonstrations and cold calls. And distributors receive high margins (30 to 40
percent) which are more than competitors’.

Outdated job descriptions of AMs: AMs don’t perform the activities detailed in the job
descriptions. Job descriptions of AMs are not updated. Again AMs do not work effectively which
is the problem of WICS. Also the job is not creative at all.

The poor communication system between WICS and distributors: Distributors have
complained that WICS uses pressure tactics to sell their products not any other’s products. The
communication is not so good. SSDs have said that their opinion never reach Lincoln. WICS
doesn’t try to good contact with SSDs.

Dependent on repetitive consumers: AMs feel stress to call new customers. Most AMs spend
very little time calling on prospective end users. They just repeated on daily calls which is not
lead to the new consumers. This is another problem to decrease the value of share.

SSDs role problem: There are some problems in SSDs role. Distributors prefer to sell other’s
products than WICS’s. The distributor sales force is not trained to sell to and cannot afford to call
on, certain segments of the market. Distributors don’t receive any support from WICS.
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Proposal analysis
Griffith started the meeting by reviewing past performances. Then he asked each manager to
present their proposals. There are some proposals for improving the situation.

Mike Toner’s proposal: This proposal was so basic. To increase sales, the industry need more
SSDs and AMs. He suggested that either add more area managers or hire and train a special
group to call on new end-users and new distributors. But the problem of this proposal would be
very costly and wasted of time also. This one can be avoided.

Calla Hart’s proposal: To motivate AMs and SSDs, Hart’s suggested that to provide incentive
programs and develop a program for recognizing new end-user sales. Also supported to establish
quotas for distributors as well as AMs. But the problem is these techniques might not work. And
this method created more pressure on the distributors.

Ryan Micheal’s proposal: He suggested that to update job descriptions of AMs. Before taking
any decision it is important to know that what type of rewards AMs want and how do they want
the value promotions. This proposal is perfect for the AMs.

Charlotte Webber’s proposal: This proposal was more strategic than other’s. He suggested that
industry’s product adding like air fresheners, general purpose cleaners can expand to cover 100%
market size (premium and average). Also introduced the economic class based products. The
problem of this proposal is entry into the low-quality segment of market while WICS known as a
high quality producer.

Caitlin Smith Proposal: He suggested to decrease sales costs. By reducing sales costs WICS
could increase sales volume and market share. Here the problem of this proposal is to reduce
price, consumer’s perception can be changed. They would thought the quality of the product has
been low.

Recommendation
There are some recommendation to improve the situation through increase market share. First of
all not only one proposal should be accepted. It is more effective if WICS could merge all of
these proposals.

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Market size (100%): WICS only cover 75% market size. If WICS want to increase the value of
market share, they can focusing other products like general purpose cleaners. So, WICS expand
100% of market size. Again introducing economic based products, WICS can increase market
share. As Caitlin Smith mentioned this industry is now maturity stage of product life cycle,
Griffith should accept Charlotte Webber’s proposal to increase market share.

Reducing sales cost: Griffith should accept Caitlin Smith’s proposal. It is important to reducing
sales cost because WICS sales cost is more than the competitors’ sales cost. By applying this
strategy, WICS would increase sales volume, penetration and market share.

Update Job descriptions for AMs: Griffith should think about Ryan Michael proposal. WICS
would updated the job descriptions of AMs. AMs need to perform the activities according to the
update job descriptions. Also job analysis is important for knowing the perfect method of how to
motivated AMs.

Good communication: There is a huge communication gap between WICS and distributers.
WICS sells products through 400 distributers which is almost 65% of sales in total market.
Though WICS forced to distributers to sell their products only and SSDs can’t communication
Lincoln directly. So, it is urgent to make a good communication for improving this situation.
Also, WICS should support to the distributors.

Introducing new end users: AMs and SSDs should find new end-users. Not only call repetitive
consumers. Also it is necessary to avoid cold calls. Ryan Michael suggested that AMs could
better spend time doing new account development work.

Distributor’s role: Griffith should accept Calla Hart’s proposal to motivate SSDs. By doing
incentives programs, quota challenge, rewards, paying bonus for improving SSDs role.
Distributor sales force need enough training to sell and call new accounts.

Conclusion
WICS has a great impact in the total market. WICS is viewed as giant in the industry. Though
WICS has no product in the economy class. So, improving WICS situation, WICS need to expand
the business by adding more products and introduce economy based products to counter
competition. By adopting these recommendation WICS can increase the value of market share.

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