Multi Products

GLOBAL MULTI-PRODUCT CHILEGLOBAL MULTI-PRODUCT CHILE

Presented By-Group VI

Dambaru Dhara NahakDambaru Dhara Nahak

Brahma Prakash PaitalBrahma Prakash Paital

Prajna JagdevPrajna Jagdev

Ranjan SarangiRanjan Sarangi

Ranjeeta PatnaikRanjeeta Patnaik

Satya Priya BeheraSatya Priya Behera

Trailokya NayakTrailokya Nayak

Background of Multi-ProductBackground of Multi-Product

• Multi-Product Inc. was founded in early 1900s to manufacture abrasives.

• Become producer of 1st water proof sand paper in 1920s.• Subsequently product no of other product as established

company as innovative , multi-product , manufacturing company .

• By 1998 they were having 50,000 product base in the world.• Target oriented for customer problems.• In 1996 international sales total 14.2 Billion $ and increase

5.8 % from the previous year.• International sales contribution was 53% of total sales .• Company was having subsidiaries 60 countries outside USA

and sales products almost 200 countries.

Company VisionCompany Vision

According the Bob Thompson (MD) the global driver for company are 1.Technology 2.Innovation3.Supply chain a customer focus.

Vision is to be the most innovative enterprise the preferred supplier by

• Developing technologies and products that create a new basis of competition.

• Earning their customer loyalty by helping them grow their business• Expanding internationally where already generate more then half of their

sales• Improving productivity and competitiveness world wide .

Technology And InnovationTechnology And Innovation

• In Year 1996 ,nearly 30 % of sales came from product introduced in last 4 years .

• It was a competitive advantages on 30 no’s technology platforms (i.e. adhesive , fluro chemistry , micro replication , electronic display etc .)

• They have around 30 programs underway , which offers high potential to generate several Billion $ .

Innovation in customer serviceInnovation in customer service

• Sales representative from one product group having strong relation with customer that benefit to other product groups also.

• Introduced customer focused marketing (Related sales) instead of company’s products groups.

• Customers rely on not for innovative and high quality product also meet the solutions to customer needs.

• 100 % customer satisfaction (1st choice of customer)• Integrated solution – “One voice , One face , One company “

means single sales employee can provide access to all products and solutions .

Multi-Product in ChileMulti-Product in Chile

• Company began operation in Chile in January 1976 with 2 m$.• 1st Branch in conception during 1977 ,2nd in Valparaiso during

1979 and 3rd Antofagasta during 1982.• In 1997 company’s total sales 60 m$ with more than 8000

Products.• Year 1998 , Survey is conducted among 117 directors and GM’s

where Multi-product ranked 6th .• Year 1998 company had 270 staffs out of 80 as sales reps , 9

no’ of tech support , 45 no’s of mfg and rest on management ,administration , maintenance etc.

Chile : A Brief HistoryChile : A Brief History

• Year 1970 a Marxist Govt was elected in Chile , Govt began a economic reform .

• Banking , textiles ,insurance industries are nationalized .• Chile currency reserve gone badly and business group

dissatisfied .which leads boycott against international credit .• Year 1973 inflation reached 300 % .• 1973 military took control of country .• Gone for market oriented reform i.e. reducing govt , privatizing

industries and lowering import duties .• 1990 Chile gone for elected democratic country and provided

economic success which leads 7% growth rate ,single digit inflation , high personal saving 23 % and fully pension system.

Chilean culture shared by Few Chilean culture shared by Few Managers .Managers .

• They are formal and closer to Argentina• Most serious people .• They are very professional .• They are very polite and indirect (i.e. email writing .)• Chilean are workaholic (work from 8 AM to 8 PM).• Meeting generally started delay.• They are very much isolated .• People don't trust each other .• Believe them selves.• They more care about their family

Bob ThompsonBob Thompson

• Prior to going to Chile Bob Thompson was Executive with Multi-Product Canada.

• Multi-Product Canada was very much successful with well trained sales and good technical support , this was a classic model for long term growth.

• Year 1991-92 in Canada company was stagnating and BT thought of empower manager with in the organization.

• BT was very thought of very much creative , positive and thought company in deeper way .

• He was spent the career out side the head office in keeping Canadian subsidiary model (comfort in broadly shared authority).

• He believe in encouraging positive risk taking and empowerment.

Bob ThompsonBob Thompson

• Multi product Chile had been successful and growing about 17 % per year .

• It was been growing 2-4 time the then domestic products.• Although there was no crisis in multi-product when BT arrived

in year 1996 but profitability declined but the good sign of improvement .

• He sized up the organization , believe in profitability objectives .

• He also made substantial changes to achieve the potential head office in Chile.

Structural ChangesStructural Changes

• He added technical support positions to support technological products.

• He created new position for integrated solution Manager will be responsible for implementation of integrated solutions in Chile and will reporting to mfg product business unit manager.

• Integrated solution manager has to coordinate the sales teams .• He also created National account leader for key accounts will

directly report to Bob Thompson

Organization structure Organization structure

MD in the regions reported to vice president of Multi-Product and Latin America ,Africa and Canada report to executive VP International operation.

Key Account ConceptKey Account Concept

• This is applicable for customer those who is having large potential to purchase product from Multi-Product.

• They sell the product differently to these customers with respect to pricing and logistic support.

• This build strategic significant long term relationship with customer.

Criteria for Selecting Key accounts as follows.1.Strong relationship with Multi-Product.2.Purchase potential .3.Potential importance as an integrated solution account.4.Concern about environment and society having same value as Global Multi-Product Chile.

Sales Representative and Integrated Sales Representative and Integrated SolutionSolution

• Earlier in Multi-Product Chile individual product groups are functioning independent of one another.

• With implement of Integrated solution , it was recognized that sales team has to work as a team to sell products.

• 15 % Sales rep are with IS program ,60 % are with program but not leading and rest 25 % are with individual product group.

• Sales rep has to adapt new sales technique to server current market• When sales rep joined Multi-Product , they were given 6 months

period and with 100% fixed pay out. After grace period 40 % would be fixed and rest 60 % are variable payout.

• Once become senior then variable pay out percent would be reduced .

• To accommodate integrated solution , sales manager could include sales of other product as target with in sales rep variable compensation . Sales rep also get additional compensation once the reach the target.

Q.1What changes are they made ? Why were those changed made ?What Q.1What changes are they made ? Why were those changed made ?What is our evaluation of these changes ?We need to think with respects to is our evaluation of these changes ?We need to think with respects to company strategy . company strategy .

Traditional distribution to retailer distribution ……

• Big American retailers are coming to Chile .• In Chile superstores are capturing 90 % of the markets share.• Superstore they made expectation in the market to get the product

from suppliers rather from distributors and they also expect lower price.

• Customer also asking direct service at lower price and having very much accessible to price of the product in Internet world wide .

• Retailer demanding just price discount.• Again demanding advertising support before the put the product

in shelve to support customer.

Q.1What changes are they made ? Why were those changed made ?What Q.1What changes are they made ? Why were those changed made ?What is our evaluation of these changes ?We need to think with respects to is our evaluation of these changes ?We need to think with respects to company strategy . Continue…… company strategy . Continue……

• Multi-Product has complete line of products in the market , which try to add more value to product .

• Multi-Product paid 5 million Pesos for photograph of office product to be include in catalogue.

• Retailer wanted timely delivery of products to reduce inventory and better communication with supplier around ordering , billing and logistic.

• For industrial product MP loading a big truck and sending to customer and for consumer product they use smaller trucks and make more stops .

• Retailed wanted to reduce multi-product sales representative from 4-5 to 1 only.

• Which lead same person has to access product from the company and might originate multiple product division.


• Company reorganized the product responsibility (i.e Marketing Manager for consumer goods looks for consumer products but also has to coordinate with Home and office division which is called as cross divisional selling )

• Many cases company continue to use distributors, because nearly 80 % of their product sales went to industrial users .

• Integrated solution was rolled out in Chile , • Part of this exercise Multi-Product discovered around 30 customer a having

very good relationship with customer where they have opportunity to sell other products also.

• In 2nd stage company has to take an X-ray of these company to determine which product they were already using ,then a group of product specialist map the customer business and find out the opportunity for other product which reduce cost to company.

• An individual sales rep was selected as a leader for specific client and act as single point of contact for all product from multi-products.


• Earlier in Multi-Product Chile individual product groups are functioning independent of one another.

• With implement of Integrated solution , it was recognized that sales team has to work as a team to sell products.

• To accommodate integrated solution , sales manager could include sales of other product as target with in sales rep variable compensation.

• Sales rep also get additional compensation once the reach the target.

Q.2 What these barriers to changes that Q.2 What these barriers to changes that Bob Thomson faces ?Bob Thomson faces ?

• Late 1996 , retreat was held between the senior mangers of Chile , Bolivia and Peru to establish mission statement but it was not gone well.

• They were not able to touch the border objective for the regions.• It was held for 2-3 hours but gone beyond 2 days .• Thompson was pretty disappointed , not only with groups

inability to reach a conclusion but also the quality discussion held.

• This become gone poorly because they don’t trust each other (Due to autonomous in what they do) .

• Manager are less aware of group process for team work.• Manager are also very much isolated and defensive .• They were also some unresolved conflict , where no such

methodology exist to resolve the conflicts .

Q.2 What these barriers to changes that Q.2 What these barriers to changes that Bob Thomson faces ? Continue…Bob Thomson faces ? Continue…

• From the conducted survey they found around there were some opinion differed on work condition , safety , pay and empowerment etc.

• As changes are happening too quick and too aggressive but employee are not able to understand why it is happening.

• Some people thought that they were measure by their sales , no need a change as company also doing good.

• There also been conflict and resistance on major changes been happened in company for various movements.

Q.3 Q.3 Bob Thompson’s position at the end of the Bob Thompson’s position at the end of the case , what would you do and how would you do ?case , what would you do and how would you do ?

• There has been resistance and conflict generated because of the changes . it may has been too aggressive and too quick . People need to understand regarding the changes.

• Thomson thought himself that may be he had introduced enough changes to Multi-Product Chile and it was not necessary to go further, after all business was good and things were going well.

Q.3 Q.3 what would you do and how would you do ? what would you do and how would you do ?

• We definitely support the initiation made by Bob Thompson for the long term growth of the company.

• Going by technological and innovation products.• Recruit better people out of the best (Support multiple

product line)• Need to be more creative (To adapt technology and

innovation)• Work on compensation system to make sales reps happy.• Provide workshops for team building.• Try to resolve conflict among employee.• Make people feel part of company in deeper way.• Adapt integrated solution and Key account Manger concept.

Documents

Multi Products