Scandinavian break systems: Case study

Résumé du document

Interpretation: Question 1 asks for having a closer look at SBS's business divisions and decides which of these divisions might have the best future opportunities for the company's business. Furthermore this question gives the possibility to focus on a specific area within the different divisions.

In order to answer question 2 firstly the different types of selling are explained and then a sales plan is made. Scope: In this report we will focus on the Aftersales market in Eastern Europe, Russia and India and on brake discs and brake pads as one part of the automotive division. When customer is mentioned it is meant by distributor.

Method/theory: In question 2 the different types of selling is done by mentioning segmenting the buy to explain the type of product that is been working with, the relationship spectrum to explain and clear the relationship between SBS and their customer and at last the buyer-seller relationship, to highlight in what way the relationship is for the buyer and the seller. After this the sales plan is made to identify the annual sales and by looking at the customers, territory and sales representatives' require to achieve the sales budget that is stated for the future.

Extraits

[...] Nevertheless new markets are emerging. A higher overall growth in Eastern Europe is expected and in addition areas like Russia and India are seen as highly interesting.[4] At the maximum growth rates up to are expected at the Aftersale market in these countries. Compared to Western Europe and China the competitive intensity in the mentioned areas will be lower.[5] At the same time the expected car sales are increasing as well. From + in India up to + in Russia within 2010-2013 and still expected to grow.[6] Not every country and manufacturer is offering a warranty for their cars including the brake discs/pads. [...]

[...] The motivational investment into the buyer and seller relationship can be seen in the following model.[8] For SBS and its customers this a “discrete exchange”. Internet based sales are possible. Nevertheless SBS has to convince the customer that the brake discs/pads have an advantage compared to competitor's products. SBS as a seller might have a higher investment into this relation. Partly, in addition to internet based sales, sales representatives could be useful and enlarge the amount of sold products. Summarizing as we can see from this analysis, SBS has to handle standard products and the relation to their customer is very simple. [...]

[...] Friction motorcycles 3. Friction special products Before recommending a division on which SBS should focus on to develop the future business it is important to distinguish between two market opportunities Original Equipment (in the following OE) and Aftersales. OE has a main disadvantage. the OE market is directly related to the production volume of the car and motorcycle industry, and for this reason it is more susceptible to economic ups and downs. For SBS, this market entails greater risk, [ SBS should focus on Aftersales and in this field the company ] is a leading provider of brake pads for motorcycles and scooters, [ They have a good reputation within the motorcycle area, which can be proven by several recommendations in specific internet forums, where SBS brake pads are the first choice for end consumer compared to the competitor Brembo. [...]

[...] Incentive scheme: When applying the sales plan and the new strategy regarding acquiring sales reps, it is very important for SBS to ensure that the agents are very focused on developing and maintaining a strong relationship with the customer. The relationship with customers are valuable to the company, so we want to set up a reward system that gives a bonus to agents, who manage to keep customers for a certain time. It could be a bonus given every time customers are kept for three years in an agents' customer base. [...]

[...] Sales representatives could be a solution. Sales strategy: the main challenge for SBS and the sales department the next 12 months is to maintain the level they operate on in the moment. This is not retention of existing customers but rather acquisition of new customers in the future growth markets and make sure to support the company's plan to grow revenue and customers through the launch of this sales plan for the aftermarket. Sales model: in order to structure the sales department and how the sales channels shall take place, this should be done by using indirect marketing, using manufacture sales representatives. [...]