pleas avoid plagiarism pleasssssss i cant get full mark when my answers plagiari
ID: 343900 • Letter: P
Question
pleas avoid plagiarism pleasssssss i cant get full mark when my answers plagiarismed so write it in your own pls
Case Study
NADHEEFCO is a company manufacturing cleaning products serving the grocery retailing market in Europ. NADHEEFCO currently segments its customers based on customer accounts values. The primary division is between national accounts, for which ten accounts constitute 70 per cent of sales by value, and field sales, which comprise a long ‘tail’ of more than 200 accounts that together make up only 30 per cent of sales. Due to the size of the field sales structure, a secondary classification groups accounts by channel type:
Neighbourhood retail, discount and pharmacy. NADHEEFCO recognizes the need to reduce the long customer ‘tail’ and is introducing distributors for orders below a minimum quantity. NADHEEFCO’s current approach to segmentation is summarized in the following Table
National accounts
Field sales
70 percent sales
30 pecent sales,
more than 200 accounts
10 accounts
Neighborhood retail
Discount sector
Pharmacy
Table 1: segmentation approach-current
While Nadheefco currently segments its retail customers by account size, its sales organisation has identified two significant types of buying behaviour displayed by the customer base:
volume-driven buying behaviour;
margin-driven buying behaviour.
Volume-driven customers are keen to capitalise on both product and supply chain cost savings in order to pass them on to their customers to drive volume sales. There are two variants of the volume-driven behaviour:
everyday low price (EDLP);
discount.
Retailers pursuing an EDLP strategy strive for continuous price reduction from suppliers such as Nadheefco to drive a fairly consistent, high volume of sales. This should result in a relatively stable pattern of demand in the washing and bathing sector. Discounters, on the other hand, are looking for bargains. Because they are aimed to sell products with very low prices compared to the market, which is a strategy more likely to result in a volatile demand pattern.
Margin-driven customers are keen to add value for their customers by offering a wide selection of products and value-adding services. This strategy also results in a relatively stable demand pattern in this sector.
A complicating factor when trying to deconstruct the buying behaviour of Nadheefco’s customers is that several secondary factors are used to support products in the marketplace.
Such factors include product types (e.g. premium, mid, utilitarian), product range (e.g. current products, end of lines, ‘b’ grade), merchandising requirements (e.g. category captains) and promotions strategy (e.g. roll-back, 12-week, 4-week, Hi-Lo). Promotions are by far the most disruptive of these factors. Although the promotions are generally planned well in advance with the retailers, they cause significant disruption to the supply chain operations due to the peaks and troughs in demand that they create.
Furthermore, the deeper the promotional activity the greater the volatility created and the greater the disruption to the supply chain. This has the effect of masking what is fundamentally a fairly stable demand pattern with somewhat artificial volatile demand.
Strategic alignment can only be achieved if the supply chain is aligned behind the segmentation strategy that Nadheefco has adopted. This is not currently the case with the Nadheefco supply chain. Each operation within the supply chain makes decisions or segments its customers based on the functional criteria that affect its part of the supply chain. We have called this lack of alignment ‘matrix twist’, because the matrix of business processes at each stage of the supply chain has been apparently twisted so that the processes fail to fit with each other. As illustrated in Table 2, the decision criteria for Nadheefco and its suppliers and customers change at each stage. This not only complicates material flows, but becomes a minefield if one considers it in terms of behavioral segments.
Table-2- S.C criteria
Questions
What does this case illustrate and What is ‘matrix twist’? (Marks= 4)
Explain the causes of ‘matrix twist between Nadheefco and its retail customers? (Marks= 2)
What actions are needed to straighten out the ‘matrix twist’? (Marks= 2)
National accounts
Field sales
70 percent sales
30 pecent sales,
more than 200 accounts
10 accounts
Neighborhood retail
Discount sector
Pharmacy
Determined by Raw material commodity type Product family type Management Supply chaln declslon process Source Make Which suppliers?Raw Which manufacturing site? Which manufacturer Historically a function of warehouse? Deliver order size? In process of belng divided by export paperwork requirements and customer account (arbitrary split) and location of store to serve Which customer RDC? Which products to Demographics of the store's catchment area, which store? which drives layout and range decisionsExplanation / Answer
1. The case is about segmentation and suppychain management. The case discusses about the the change required in segmenting the products from the long cistomer tail to cusstomers which order below minimum order quantity. For the marketing of the product to be successful the segementation and all the process linked with marketing like product, price, promotion and place should be absolutley linked to each other one leading to another for efficiency of business. In the above casestudy there is no proper way or method followed to segment its customers. which is acting as a hinderence in providing the goods on time due to mismatched sales and demands forecasts.
The matrix twist is the lack of allignment of segmentation and supply chain functions leading to disruption in supply chian management. The business processes cannot be processes fail to fit in regular manner and work efficiently .
2.The causes for the twist between the retaill consumers and nadheefco because the retail customers have their own selling strategies like discounts and everyday low pricing which affects the demand of the product directly. This is not communicated in time through which the same cannot be provided to the customers leading to delay and not reaching the product on time at the shelfs. These strategies of the retail customers lead to volatile consumer buying behaviour as it is unpredictable this becomes difficult for the company to manage its supply chain.
3. The company should know about the promotional strategies used by retailers well in advance so as to the company can plan and impliment accordingly in its supply chain. There should be clear segmentation to be done based on a single criteria so that it would not lead to any confusions and there is a streamline of the whole process without any gap or mistakes in the process.
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