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STRATEGIC SELLING TO LARGE ACCOUNTS
CASE: ALLOY RODS CORPORATION
Date of Submission:
21 – 11 -2008
Submitted to:
Prof. Ramesh Venkateswaran
Submitted by:
GROUP 11
Kaushik Gopal Bhattacharya (7082)
Marimuthu P (7088)
Ramanujan A.S (7098)
Sonika Sharma (7106)
Sumit Kumar Jangid (7113)
SDM INSTITUTE FOR MANAGEMENT DEVELOPMENT
MYSORE
ALLOY RODS CORPORATION
In July of 1985 the managers of Alloy Rods find that their competitor has introduced a new product clearly aimed at Alloy's most profitable market segment – the Flux cored product. Alloy Rods competed in the three major welding processes and five major product groups.
In 1985, welding equipment & supplies was a $1.6 billion industry in the United States. In 1984, Alloy domestic operations had sales of approximately $65 million with an after-tax profit of between $1 to $2 million. Flux-cored wire accounted for nearly 40% of sales & low-hydrogen coated for 15%. Alloy was ranked first among electrodes suppliers in product quality, technical capabilities, & product innovativeness.
In 1984, Alloy spent about $ 500,000 on advertising, product literature and sales promotions which was quite less than its competitors. It also paid advertising and promotional allowances to its distributors which were not offered by its competitors. In 1985, Alloy rods used about 500 independent distributors & their top 50 distributors accounted for 80% of the company’s sales. They employed 21 fiel ...