3 What action would you take? MacLaren Tyres is a company involved in the import and marketing of car tyres manufactured in Asia.

David MacLaren established the business in 1990 when a friend living in Singapore told him of the supply of tyres from that area which substantially undercut European prices. Although Asian tyres were not as long lasting as European ones (average 18,000 miles compared with 25,000), they were produced to a high standard, which meant that problems like weak spots, cracks and leaks were no more serious than with European tyres.

MacLaren believed that a viable target market existed for the sale of these tyres in the United Kingdom. He was of the opinion that a substantial number of people were interested primarily in the purchase price of tyres. This price-sensitive target market could roughly be described as the mid–

lower income family that owned a second-hand car which was over three years old.

He decided to buy a consignment of tyres and visited tyre centres to sell them. Initially business was slow but gradually, as distributors began to believe in the quality of the tyres, sales grew.

MacLaren was general manager and had recruited five salespeople to handle the sales function.

A brief personal profile produced by MacLaren of each of his salespeople is given below. Profiles of MacLaren salespeople Peter Killick. Joined the company five years ago. Has an HND (Business Studies) and previously worked as an insurance salesperson for two years. Aged 27. Handles the Tyneside area. Gregarious and extrovert.