CPI Case Study PowerBase Selling: CPI Case Study Computer Peripheral Inc. (CPI) is a manufacturer of electronic equipment that is used within many computer workstations to enhance graphics for gaming, they have just opened a new facility located in Calgary, Alberta, part of an expansion effort to support production that the existing Toronto plant cannot handle For the past year, CPI, Calgary, has been recruiting people from all over the country, many of whom are experienced with Amco production equipment. The Amco salesman. Ed Robinson, has been aware of the new facility for months through his established contacts. In fact, Ed has been very helpful to CPI in suggesting people they might want to recruit. Knowing that the need for production equipment would inevitably come about. Ed began the selling process early, and, with no competitive resistance, gained acceptance. In fact, before long, all of the management levels at the Calgary plant were conditioned to buy Amco, and Ed was well on his way to establishing a new account. It wasn't long before information that CPI was expanding with a new plant in Calgary became known to the industry, and one of Amco's competitors. Consolidated Systems, entered into the race They were far behind, relative to Amco's penetration, but made up for it with drive and determination. Their products were very similar, although Consolidated Systems did have a newer and higher thru-put system, which they chose not to propose for a simple reason - the customer did not feel that they needed the additional capability, coupled with a substantially higher selling price. Ed monitored the discussions between Consolidated Systems and CPI very carefully through his contacts, observing that Consolidated made the determination of which system to propose very quickly. He was pleased that they did not propose their new system. As a result, barring initial commotion, Amco was still in the lead as a well-known entity with a reliable product This level of competition continued for several months, with Consolidated exploring in-road after in-road, but getting nowhere. Meanwhile, Ed continued to reinforce his position by focusing on his company's and products' strengths. Specifically, he concentrated on Amco's reputation for standing behind its products. He also stated in a simple and clear manner the design objectives of the equipment - it was technically competent, easy to use, and reliable. These soon became the main sales issues, setting the pace for the competition and dealing directly with Amco's strengths. The sales situation was going well for Fd, and he soon became confident that the production equipment business would be his. Still, there was a degree of uncertainty: he was confident, but not convinced. There was still one potentially viable competitor - Silicon - who had not shown any interest as yet in CPL The CPI Toronto facility, of which the Calgary Plant was an outgrowth, viewed the expansion with mixed emotions. While it was good to see CPI grow as a company, it was alarming to think that new products might not be produced in Toronto, thus limiting that facility's growth and the opportunities for individual advancement. In spite of all this, Toronto did have the responsibility to help Calgary get off the ground, and supporied them in every possible way. Although they did not participate in the buying decisions for the new plant, they would offer an opinion whenever asked Part of Ed's uneasy feelings - although he did not realize it at the time - was his exposure in the Toronto plant, It has always been Amco's style not to coordinate major accounts, although intellectually, they would acknowledge their importance. The other concern in the back of Ed's mind was the product he had proposed. It would certainly do the job, but not as well as the technologically newer products, such as those offered by Consolidated Systems and Silcon. Still, he was in the lead, and totally committed to stay there, even if it required all of his time and efforts Case Study The people at CPI Calgary were mostly from other parts of the country, particularly Toronto, Ed knew most of these people and had spent a great deal of time with key decision makers, whom he had identified very early. Their names and responsibilities are as follows: Ted Anderson (Vice President) Al Fullerton (Plant Manager) John Allen (Production Manager) Bill Collins (Supervisor) John Donnelly - Jim Casey (Assistant Supervisior Assistant Supervisior) Product Support Production The key decision makers are Bill Collins and Jim Casey, however, John Allen. Al Fullerton and Ted Anderson must also sign their approvals to the order before it is placed. John Donnelly, although not directly involved in the decision, has significant influence on Jim Casey, who respects John's opinion A competitive matrix, defining the position of each character relative to the various vendors prior to Silcon's entry, follows: Illustration C - A Competitive Marrix Compan Jim Casey John Donnelly AMCO Sold by Amco's and past experience with Amco products Supports Jim but is personally neutral toward Amco, or slightly positive Bill Collins John Allen Al Fullerton Ted Anderson Sold by Conditioned Removed from Amco's by Bill and the details reputation and Jim to support past Amco experience with Amico products Neutral No opinion No opinion Consoli Poor history with dated Consolidated Does not like their gressive selling techniques which he finds offensive Neutral Na firm upina No opinion No opinie no Favorite from Siloen Case Study Exercise: You are now ready to assume the role of Silcon's salesperson in defining and implementing a results-oriented sales plan. Both of your competitors (Amco & Consolidated) are proposing older equipment while you and you sales team are proposing new equipment that is much faster and produces a finer product. In addition, the amount of time you have to turn the situation around is limited to three weeks, as CPI must place an order before the year's end. Using the examples in the Strategic Planning Powerpoint, Page 5 & 6, and what you have leared in the course, complete the following sections Silcon's Strategic Plan Relationship Model (Hint: you're going to use many people in your company to assist): Sales Objective & Value Proposition (Hint: It has already been stated): Strategy Tactics Resources Required: Use the Discussion forum "CPI Case Study" to share your thoughts and answers, please keep your response to less than a page