Plastic Products Ltd is a company that produces and markets plastic cups, teaspoons, knives and forks for the catering industry. The company was set up in 1974 in response to the changes taking place in the catering industry. The growth of the fast-food sector of the market was seen as an opportunity to provide disposable eating utensils, which would save on human resources and allow the speedy provision of utensils for fast customer flow. In addition, Plastic Products has benefited from the growth in supermarkets, and sells 'consumer packs' through four of the large supermarket groups. In addition, the company intends to offer a new range of products with recycled plastics. 

The expansion of sales and outlets has led Jim Spencer, the sales manager, to recommend to Bill Preedy, the general manager, that the present sales force of two regional representatives be increased to four. Spencer believes that the new recruits should have experience of selling fast-moving consumer goods, since essentially that is what his products are. But Preedy believes that the new recruits should be familiar with plastic products, since that is what they are selling. He favours recruiting from within the plastics industry, since such people are familiar with the supply, production and prosperities of plastic and are likely to talk the same languages as other people working at the firm. Case adopted from Zimmerman & Blythe (2018) 

 Question 1 

Discuss four (4) factors that affect the demand of their products in the business environment. 

Question 2 

The company intends to offer a new range of products with recycled plastics. Propose three (3) most effective marketing communications tools that the company could adopt to help it communicate its new offerings to its customers. 

Question 3 

For the selection criteria for the new recruits, do you agree with Spencer or Preedy, or neither? Critically evaluate their approaches respectively. 

 Question 4 

 (a) Critically evaluate how the three compensation schemes, fixed salary, commission only, and fixed salary plus commission impact on motivation to promote the new range of products with recycled plastics.  

(b) Recommend a remuneration system with financial and non-financial rewards to best motivate the sales of the new products. 

Answer rating: 100% (QA)

Question 1 The demand for the products of Plastic Products Ltd is influenced by various factors 1 Price The price of plastic products is a significant determinant of demand If these products are compe... View the full answer