4 E96 of 379 > CASE 3.2 CRon Chapple Stock/FotoSearchGlow Images Jackson Ceiling Fans An Page 112 You work as a salesperson for Jackson.Ceiling Fans, a manufacturer of ceiling fans for households and apartments. As a salesperson, you work with retailers across the United States. These retailers buy directly from your firm (.e., the manufacturer) and then resell your products to an end consumer. The retailer's consumers may be homeowners, remodeling businesses, general contractors, and maintenance personnel. Your supervisor has asked you to research your retailers' buying processes for ceiling fans. With this information, you will determine if your company has the correct selling strategy for your company's salespeople. After one of the major home dcor trade shows, you hold a focus group discussion with three groups of retailers. You have nine representatives attend the discussion: Three representatives work for major, big-box, home improvement retailers. These retailers are nationwide and provide a range of fan products. They operate very large stores (ie., greater than 100,000 square feet). They have a range of customers. They serve homeowners, contractors, and even maintenance personnel for apartments. Three representatives own multiple hardware stores (i.e... 5 to 15 stores). These hardware stores tend to be located in suburban strip malls or stand-alone buildings in neighborhoods. They charge premium prices. They are known for providing a great deal of guidance and advice to their consumers (e.. homeowners). The third group of three representatives are owners of lumberyards. This group of retailers work solely with general and specialty contractors. They provide a variety of fans often based on price, style, or brand. Your meeting has provided an abundance of research. You have developed a summary table (below). Now, you must discem the differences in the buying processes and the benefits that are important to each type of business buyer. Questions 1. Explain the different needs that a salesperson would have to address for each type of customer? 2. For each type of customer, describe what the salesperson would need to consider regarding the timing of meetings. 3. For each type of customer, describe how the amount sold would be different. 4. What would be the key difference in meeting preparation for a salesperson who is meeting with a buying committee for a big-box retailer versus a meeting with the buyers for the lumberyard? Page 113 Big-box, home improvement retailers Suburban, neighborhood- based hardware stores Local lumberyards Buying process (cycle) What is the buying process? Quantity of units ordered We purchase twice per year. We have set times for meetings (specific days, times, weeks) every year. We place orders 6 months ahead of time. For stocking in Spring (March). we begin the process of reviewing products in September. You will meet with a buying committee of three individuals. You should share with us any new product introductions ahead of time (e., 12 months if possible). We order eight (8) SKUs of the 15 best-selling styles for placement in each store. We will offer all styles online. We would purchase for all of our We consistently review opportunities for products. We review products once per quarter for sell-through. This allows us to know whether we will continue rebuying the product or discontinue it Our buyers for the fan category are located at our headquarters. We review new items once per year (October) and then place orders in November. We allow our managers to purchase products when they see a need in the market, due to contractor requests. The system is pretty fluid. The manager of each lumberyard and their home dcor manager is responsible for all purchases for their You will meet with our buyer. The store. buyer will provide a recommendation to our general manager We tend to order four (4) of the most general SKUs to be placed in each store. We also offer additional styles online. You would meet with both of those Individuals. We hold one unit of 20 different styles in-store. We offer our customers a catalog (in-store) for different styles. <96 of 379> What are the retailers top three buying needs? What types of assistance do the retailers require? P 1. MSRP (price on shelf needs to 1. Margin. We require a margin 1. Delivery speed. be competitive with our competitors). 2. Margins. The ceiling category should yield 20% overall. 3. Invoice terms. We prefer net 90 if possible. 1. We expect you to promote your products in our promotional circular twice per year. You are responsible for "buying-down" the price and placing your product on sale by a minimum of 10% 2. We expect you to create national awareness of your brand. 3. We need market share data on your product. This should be provided to us on a quarterly basis. exceeding 55% 2. Training of our salespeople on the product. 3. Product assortment that is aligned with contemporary decorating needs. 1. We expect your team to provide quality training to our salespeople once per i year (.e., in-store). 2. We expect co-op advertising opportunities. 3. We need to understand the key trends in homeowner dcor as it relates to ceiling fans. Once we order something from you, we would like to receive it within 72 hours. 2. Margins exceeding 40% for products stocked in the store. 3. A strong assortment of products that can be displayed on our website. 1. We expect great follow-up after the order and the ability to track the order and shipment. 2. We expect 100% of your products that we display online will be available within 72 hours (... received in our stores). 3. We expect 24- hour customer support for the installation of your products (via