Answered: 2. What are the longer-run implications…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

2. What are the longer-run implications of this strategy for Tom Olivia and Jordan Wholesale Marketplace?

38
Part One
Describing the Personal
It was now Friday night, and Tom was heading
home. It had been a tough week, and he was
looking forward to the weekend. The Wick's situa-
tion with Best Night had not gone the way he
hoped it would, but now that he had decided what
to do, he was feeling better. Tom did not like to
lose, and as he drove home, more than once he
thought, "I'll show Wick's. If
with me, I'll take the business through Good Food
Wholesalers." Tom planned to call Grace Lamkin
over the weekend and run the plan by her. Next
week, he planned on hitting all of the Best Night
Inns with the Good Food Wholesalers salespeople.
you
don't play ball
Questions
1. How likely is it that Tom Olivia will be success-
ful in the short term with this strategy?
2. What are the longer-run implications of this
strategy for Tom Olivia and Jordan Wholesale
Marketplace?
3. If you were Grace Lamkin, what advice would
you give Tom?

Transcribed Image Text:quarters in package that could be customized with Best Food Wholesalers. If the motel operators liked the Chapter Two Overview of Personal Selling 37 MAKING SALES MANAGEMENT DECISIONS CASE 2.1: JORDAN WHOLESALE him had tried to get reestablished with Wick's, but Wick's buyers had steadfastly refused to buy from Jordan MARKETPLACE Wholesale, Background Jordan Wholesale Marketplace was founded in Los Angeles in 1965 to supply professional catering companies with a wide variety of institutional food Tom was determined to get the Best Night Inn's business, so he made sales calls on the 16 motels to gauge their interest in Wholesalers, another foodservice wholesaler with whom Tom ha on the switching to GO0 Good Food products, including canned vegetables and meats. The company and is now one of the largest full-service institu- With da strong working relationship. The had grown steadily over the decades, Best Night operators were unanimous-they had no intention of leaving Wick's for Good Food Wholesalers. In making the rounds to the 16 morelk Tom learned that the individual hotel managers had no authority to buy from suppliers that had not been previously approved by their corporate head- gest Food tional food suppliers in the nation, selling perish- able and non-perishable foods and foodservice supplies such as tablecloths, napkins, and tableware. In the past year, Jordan Wholesale Marketplace had begun an aggressive push into a new market segment, the hotel/motel restaurant market. called Louisville. Tom headquarters, where he learned then on Best согрогate that becoming an approved supplier would take a minimum of 60 days–if approval was granted. Best Night's director of purchasing was frank with Tom, him: "We have been extremely satisfied with Current Situation Tom Olivia is the Jordan Wholesale sales represen- tative in Louisville, KY. Tom has been with the company for almost two years. He is a recent college graduate and looks forward to proving himself in his sales position, then moving into Tom's sales f he telling Wick's, and don't see much need to add Good Food Wholesalers to the list of approved suppliers. If I were in your shoes, I would try to sell through Wick's," Tom went back to Wick's, trying once again to management with the company. manager, Grace Lamkin, has told Tom that if finishes the year over 100 percent on his sales versus quota target that he would enter the pool of candidates for promotion sometime in the follow- ing 12 months. Tom is doing quite well with his existing accounts, and has added a couple of new He believes that he will finish the year a percent of quota, but he needs to hotel/motel business to be become one of their suppliers. He decided to foot-in-the-door strategy, meaning that he would only try to sell one small part of his product line, with hopes that if this proved to be successful, he would be able to Tom presented the newest version of Jordan Wholesale, use a his sales through Wick's. little 100 very attractive tablecloth/napkin over add some of the new sure he achieves his sales goals. logo. Bill Wilson, the Wick's buyer, turned Tom down, ally, but we simply are not ready to do business with Jordan Wholesale again. You guys are doing some impressive things in the marketplace, and next year we may get together with you. But that's not in the plan for this year." Disappointed, Tom felt he had but one choice if he wanted to make his year-end numbers. He arranged sales calls with the three Good Food Wholesalers sales representatives who called on Best Night Inns. Tom planned to work with the Good Food Wholesalers salespeople to present the Jordan Wholesale packages, « late interest, and try to convince all 16 of the Best Night saying, "Tom, don't take this person- has been attempting to secure the restau- rant business of Best Night Inn, a regional chain of in Kentucky. Best Night's corporate headquarters are in Louisville and the chain currently buys all of its food and restau- rant supplies from Wick's Food Supply, a well- established wholesale restaurant supplier. Wick's has its own salesforce, most of whom are veteran salespeople who have established good relationships with the restaurant operators in their sales territo- 16 moderately priced mot ries. Jordan Wholesale has not been a supplier for Wick's for more than 10 years. Tom has been told that Jordan Wholesale and Wick's had some friction over service problems, with Wick's head buyer claiming supplier. The buyer reportedly withheld partial payment on several invoices, and ultimately Jordan Wholesale refused to sell to Wick's. Tom and the Jordan Wholesale sales representative who preceded cut the price to stimu- to buy the packages from Good that Jordan Wholesale was not a reliable packages, Tom figured speed up the supplier approval process back at Best Night's headquarters and book the additional sales volume before year-end. he could use their interest to Part One Describing the Personal Selling Function

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