Part 1:

Drain cleaner that cleared the worst clogged sinks, toilets, showers, floor drains

The 200g can provided 10 shots

Ingredients - certified environmentally friendly

Blue angel certification in Germany to substantiate this claim

Product only leaves a few ice crystals that can be washed away with hot water

Product used HFCs hydrofluorocarbons instead of CFC chlorofluorocarbons - environmentalists endorsed it

Cost $2.50 per can

Joe created the name- signed contract July 1, 2011

Effective, environmentally friendly product

Affordable distribution rights - 3.5 years

To keep rights for 5 more years joe had to meet a minimum sales of 500,000 units by December 31, 2014

Since signing agreement he told a total of 25,000 units through a contract with small chain of hardware stores in the northeastern U.S

Joe's dreams of wealth was not meeting standards - he thought this was the world's greatest product

He had no new ideas of what to do next

Cost was firm at $2.50 in canadian dollars for 3 years- if 500,000 was reached by 2014, the price could be revisited

Joe was prepared to invest $250,000 into the venture

Fixed costs

2 Sales people- $65,000 each

Advertisement - $10,000 for flyers and to distribute them

Additional expenses - $40,000

Distribute flyers across North America

Flyers had only been delivered in Toronto, Ottawa, London, Cleveland, Pittsburgh

Negotiations with a major hardware chain

Ordered 50,000 units on a trial basis

Demanded a keystone markup on product (what he pays joe would be marked up 100% - double joes price

Demanded significant promotional support ( whatever it takes to sell 50,00 as quickly as possible

Consumer behavior

North americans are more squeamish than other people around the world

Fixed the mess that the product made

Found a company that designed/manufactured a handle and splash protector that could be used for clogged toilets- cost to joe was $4.95 per can with minimum of 1000 units

Other products - caustic, corrosive chemicals- most not useful for a clogged toilet

IDENTIFICATION OF PROBLEM(S)

DECISION CRITERIA

ANALYSIS

ALTERNATIVES (analysis option and decisions)

DECISION(S)/RECOMMENDATIONS

IMPLEMENTATION

Part 2: Questions for Case number 2:

1. What type of segmentation do you consider for this company? Please describe your answer.

2. Provide a SWOT assessment for Enviro-Plumber.

3. What pricing point (or strategy) for Enviro-plumber with the size of 200g (10 shots)?

4. What type of B2B strategy do you recommend to this company? Please explain your answer.

5. Prepare a marketing strategy for Enviro-Plumber by describing the target market and

Marketing Mix that you would recommend to Smit.

6. What alternative, creative solutions can you think of for Smit to consider?

7. What type of Integrated Communication Programs would you select to promote the company? Why?

8. If you are asked to develop the Business-to-Business Advertising Program, what steps do you take for doing the task in this company?