Essay About Ways Soslp And Pic

South-Western Ohio Steel Lp Market Research
[pic 1][pic 2][pic 3]Company’s Profile and Facts Name: South-western Ohio steel LPFounded in 1945 By Bill Wolf as South-western Ohio steelIn 1994 the company has over 500 employeesAnnual Sales -$250 millionAnnual Shipments- 400,000 tonsOne of the best Industry leaders in Technology and serviceThey consider the concept of partnership with the customers to be very importantBelieve in Mutual Respect, Loyalty and Good business practiceTop 25 customers Produced about 2/3rds of the company’s salesDid little advertising or promotionsProblem StatementIn what ways SOSLP can manage customer expectations without adversely affecting sales/relations with their customersIn what ways SOSLP can handle the request made by Matwork for sponsoring the eventAlternatives: -To sponsor an event To not sponsor an event We can make this judgement based on certain evaluation criteria:-1. Impact on customer expectations2. Impact on SOSLP’s corporate image3. Benefits to SOSLP:a. Relationship with Matworksb. Effect on other customersOption 1.  Sponsor any event to be conducted:Impact on customer expectationsSponsoring the event will raise up the expectation of other competitors. We know that in 1993 they went down to the ninetieth in the list of top customers. So when top customers will request for sponsorship we will be unable to refuse them. Also top customers will demand higher amount for sponsorship which will be difficult for SOSLP to manage. Impact on SOSLP’s corporate image: Here two things can happen This may help build up the image of SOSLP. They will get limelight and compared to their competitors they will be in focus.  This might help them getting noticed among its customer.This may adversely affect the image of SOSLP. SOSLP was known for its integrity and honesty. There is high chance that other customer may see this as some sort of deal between these two companies. Event to be sponsored—Sub-options: -To sponsor the least costly event, costing $5000:Expenses on Advertisements Sales (in dollars)250 MillionPercentage spent on Advertisements1/100Expense (in dollars)25,000Calculation of Profit from Matworks Sales (in dollars for 1993)672000Profit Margin3%Profit (in dollars for 1993)20,160   Can sponsor golf tournamenta. Relation with Matworks: Despite being aware of company policies they are requesting sponsorship, implies that event is really important and it will help sustain the relation with Matworks