Task 1
JSC "Royal E" is a company that has been operating in machinery and equipment for many years and can be called a solid business. Last year the turnover was about Ls 4.5 million. and the company sold its products mainly in the business / industrial market. The range of goods is of different sizes electric motors, as well as special tools for industry.
The company has its own distributors, which regularly visit companies and larger companies wholesalers of electrical goods and construction products and chain stores. There is strong competition in the market and last year's earnings figures were rather modest.
The company is looking for new products that fit into the range and have asked for it help companies in their industry to get in touch with potential manufacturers. A large foreign company has offered special provisions to JSC “Royal E” for a nail gun with accessories in different versions. The Nagle gun is with good quality, it is multifunctional and the price offered is good.
The gun is based on professional carpenters. In the implementation phase, the supplier promises to provide special assistance.
For the management of JSC “RoyalE” the product seems very and they want to more thoroughly assess whether a pistol is included in the assortment.
As a consultant, you have to make the following point:
What, in your opinion, should the company management consider before deciding on the marketing of the new product?
Task 2
Several companies (suppliers) are competing in the enterprise / industrial market with similar products. Products are the raw materials used by other companies (customers) in production.
Three of the suppliers are relatively large companies and share 70% of the marketnin equal shares. Other suppliers are small and their market shares do not exceed 5%.
You are a marketing director in one of the companies. The company needs modernize production equipment. To make use of the upgrades additional capacity, the company's market share should be increased by 25%.
The director of the company has invited you to the meeting to discuss this and to hear your opinion on one of the solutions offered - lower prices to gain more market share. How do you rate the offer:
A. If you work in one of three big companies?
B. If you work in one of the small businesses?