Wentworth Industrial

Cleaning Supplies (WICS)

Siddhant Gupta 160103131

Industry Analysis
Institutional maintenance chemical market is $2.5 billion in 2007
Janitorial maintenance market is $1.2 billion in 2007
Out of which sales happened of 900 million in 2007
65% of market served by Distributors while 35% by selling directly to end user
2000 manufacturers of national and private labels
5000-6000 distributors
No firm has more than 10% of market share
SSD usually has a private label and 1-2 branded products
Total sales volume of the industry has increased compared to last year

WICS
Addresses 75% of markets product needs
Has 400 distributors covering 65% of the market covered by SSDs
Less than 10% sales made direct
Catering to approx. 20,000 customers
Produces average to premium products and charges a premium price
40% of the served market is willing to pay the premium prices
Focus of the company on Market Development
Gives 30-40% margin to SSDs compared to industry standard of 15-20%
Has higher sales cost of 10-15% compared to industry standard of 8-10%
 Issues faced by WICS
Slow down in growth although the total sales volume has increased for industry

SSD not happy with the company and reduces the price of the product while selling

Sync between the job description and actual work is not there for AMs and SSDs

The job description of the AMs is obsolete

Only 40% of the market served is willing to pay for the prices

The AM is not included in the study sent to the corporate management by TM, so the
ground reality may not be getting conveyed
TM has absolutely no role of selling. It is essential for TM to have some customer
management role to stay connected to the market place
The focus of the company is on Market Development yet the AM spends 80% of his time
on existing accounts
Demonstration, cold calls and training is more about checking the boxes
If AM converts a new account, necessary follow-up is not taken by SSD
SSDs are forced to carry new products
SSDs communication with WICS management is poor
SSD used as a testing ground for WICS new products
 Alternatives
Mike Toners Proposal
Increase the SSDs. Each area manager add two more distributors. Add AMs or train a
group to call on new end users and new distributors
Advantages Disadvantages
Market Development Cost of hiring and training
Increased visibility of the brand WICS

Calla Harts Proposal

Motivate current AMs and SSDs to bring more business. Include SSD in the incentive
program and quarterly incentive program for the Ams. Establishing quotas for
distributors

Advantages Disadvantages
Recognition and Motivation of SSD More pressure and frustration to SSD
Healthy competition b/w SSDs More pressure on AM
 Ryan Michaels Proposal
Examine the basic selling duties of AM. Ask AM what is important to them before giving
them an incentive program
Advantages Disadvantages
JD is obsolete, so good idea to upgrade Time constraint
Getting the ground reality of AMs needs Cost for conducting Market Research
Resistance to change from AM and SSD

Charlotte Webbers Proposal

Addition of a full line of economy based products and expanding premium and average
product lines. Adding new SSD and goal to address 75% of end user dollars.
Advantages Disadvantages
No cost and effort of distribution of the Can result in Brand dilution
new product line
Product Development to increase the The cost and risk associated with product
market share development
 Caitlin Smiths Proposal
Change the JD. Reduce cost of sales by reducing the prices to increase market share and
market penetration
Advantages Disadvantages
Remove the need to cut prices by SSD Customer may feel that the quality of
product might have been reduced
Increase in market share High risk as there is no substantial backing
for the assumption made

What should WICS do

Instead of reducing price add promotional discount eg buy 3 get 1 free
Initiate a two way communication between SSD and WICS management by amending the
JD of TM
Put more focus on direct sales to increase the sales to retail and building supply
contractors
The JD of the managers needs to be upgraded
Include SSD in the incentive program
Cover the premium segment by 100%