ASSIGNMENT

On

Sales Management Case Study

Submitted To:
Mrinal Kanti Paul, Faculty Member, AHSANULLAH UNIVERSITY OF SCIENCE & TECHNOLOGY SCHOOL OF BUSINESS.

Presented By:
MD. Habibur Rahman
ID: 05.01.02.003

WILLIAM CHOWDHURY
ID: 05.01.02.012

4th year, 1st semester. Date: 28th May, 2008.

Plastics Industries, Inc.

The company had been organized in Beaumont, Texas, to manufacture pipe. Its manufacturing plant located on the outskirts of Beaumont. It had an extruder made by Germany. Polypropylene is the raw material and its available in major chemical companies. The finished pipe was called Plylene pipe. The use of plastic pipe as a replacement for others types of pipe was a new development. It is natural test and accepted by Food and Drug administration and Department of Commerce. Plastic Industries maintained a stuff of 2 engineers for the extruder. And a sales force of 3 sales engineers, plus one factory representative to sell major industrial users. There some competitors in market for Plastic Industries, Inc. they are small but growing. Such as DuPont, Shell and Hercules. The market of Plylene pipe is big. But its still new for the user of this pipe. And the middle man and the user need instruction in installation of plastic pipe.

What should be the role of personal selling for a production such as this?
As we studied the case of Plastic Industries, Inc. we think there is a potential market but no direct marketing. So here we can use the personal selling as a sales force to support a push strategy (encouraging intermediaries to buy the product). What will be the main roles of the sales force? (1) Prospecting - trying to find new customers (2) Communicating - with existing and potential customers about the product range (3) Selling - contact with the customer, answering questions and trying to close the sale (4) Servicing - providing support and service to the customer in the period up to delivery and also post-sale (5) Information gathering - obtaining information about the market to feedback into the marketing planning process (6) Allocating - in times of product shortage, the sales force may have the power to decide how available stocks are allocated

What will be the advantages of using personal selling for Plastic Industries, Inc. ? Personal selling is a face-to-face activity; customers therefore obtain a relatively high degree of personal attention The sales message can be customized to meet the needs of the customer Personal selling is a good way of getting across this type of product The face-to-face sales meeting gives the sales force chance to demonstrate the product Frequent meetings between sales force and customer provide an opportunity to build good long-term relationships One disadvantages of using personal selling The main disadvantage of personal selling is the cost of employing a sales force. Sales people are expensive. In addition to the basic pay package, a business needs to provide incentives to achieve sales (typically this is based on commission and/or bonus arrangements) and the equipment to make sales calls (car, travel and subsistence costs, mobile phone etc).

What kind or kinds of promotions would probably have been most productive for Plastic Industries?
Here we can also use the Public relations, Sales promotion, Advertising as promotional tool for Plastic Industries, Inc. Now let us tell why we select Advertising for promotion: As we know general public and builders doesnt know about this product so we have to inform them about it how it can be used. And it is safe and natural. As the question of the budget we know that the Plastic Industries, Inc. had some problem because it is too small to advertise in many major media. But we should remember that the role of advertising is to create demand for Pipe. So we can reach the general people and the builders through cooperative advertising on a shared-cost basis by suppliers. So we think it can be a productive promotion for Plastic Industries. As we explained that why we choose this media for promotion we also recomened that it should be the published media.

Published media include:

National daily newspapers Sunday newspapers Local and regional newspapers Consumer magazines

Specialist magazines Trade and professional press Internet

Why we choose the Published media: We think it will cheaper than any other media. And if we see on basis of Plastic Industries, Inc. target market we can see those are the oil companies, builders, middleman etc. so they are habitual to these newspapers, magazines, trade and professional press, internet. Plastic Industries, Inc. can use Coupons, sweepstakes, contests, rebates, tieins, self-liquidating premiums, trade shows, trade-ins, and exhibitions as a sales promotion tools. Plastic Industries, Inc. can use public relation tools too. Such as presentations, charitable contributions, reports, speeches, issue advertising, and seminars.

Should the company go after the home construction market?

Yes off course, we know that the home market is five time larger than the present market of Plastic Industries. And it is costly to go for foreign market without entering the home market. So it will be better for Plastic Industries, Inc. to enter the home market and develop a brand. When the home demand will be fulfilled it will go after the foreign market again. And it will help Plastic Industries, Inc in foreign market with a brand.

Would the job of the salesperson be changed if entry is made into the home construction market?
Yeah the job of the salesperson can be changed if Plastic Industries, Inc. enter the home construction market. Plastic Industries, Inc. had a sales force of 3 sales engineers, plus one factory representative to sell the pipe to the oil industries. But now the job will change, now the middle man will contact with the oil companies and with the builders and with the local customers. The middle man will contact with the salesperson.