Memaksa Steel Case Study Analysis
What would be the incentive to change for the distributors, the outfitters, and the sawmills
The incentive to change for the distributors, the outfitters and sawmills would be to give the challenging but realistic target & to reward them for reaching those targets. The company could customize the incentive program to intrigue the outfitters, distributors, and sawmills as it would help the company to motivate them to focus on delivering the satisfactory performance & hence grow the sales of the product. The company could reward outfitters and distributors in the shape of the rebate as the new product extensively requires promotions, so giving a rebate to them would lead to an increased sales of the product because they would get a certain percentage of the sales back. The company could give marketing based incentives to develop the brand and drive marketing activities. By doing so, the company would be able to increase brand awareness, sales& market share and help the company to build a stronger relationship with outfitters, distributors, and sawmills & get its new product in more hands.(Horton, 2015)
If the distribution channels decide not to carry your product, what can you do to still proceed with this innovation
If the distribution channels decide to not carry your product, the best way to still proceed with the innovation is to purchase the online ads to reach to the customers at scale and to generate demand of the product in the market, as the internet is a global computer network covering the entire globe, which has becomea substantially vast advertising resource. It would allow the company to convey the advertising message to a maximum number of potential customers by offering the product. In addition to this, the company could use email marketing as it would provide a reliable form of communication between customers and products. Furthermore, the company could segment its customers, including: individuals, furniture based organizations, and construction companies, etc. to send highly personalized content and to develop the brand identity, because it would give direct line to the email inboxes of the potential of target customers. Additionally, the company is recommended to build its website to sell the product. Through the website, the company could also offer its product to both domestic and international customers. The key product content should include:an in-depth description of the product with an inclusion of its point of differentiation, comparison, pricing and usefulness.(Yohn, 2019).
Conclusion
Memaksa Steel is a valuable producer of specialty steel products, particularly in Indonesia. Santi der Majoidoreviewed the research & development (R&D) report on “Process #887”latest project of firm. It is the new process of metal finishing, which tends to increase the steel product’ wear time that is subjected to an intense abrasion by nearly 60 percent. The total profit for the old blade amountsto $1500000, while the total profit for the new blade amountsto $1984375, which is considerably higher than the profit for the old blade.Distributors and outfitters must weigh the product against the expectations and demands of the product. They could reject this new product if they find that the product would not be accepted and approved in the market and if the product faces demand risk & fail to generate demand for the product. The company should launch the new product in the market where the construction activities of new homes and renovation or remodelling of existing homes are on the rise.The company should increase product awareness, which should include the qualities of the product that differentiate the product from its market rivals. The company could reward outfitters and distributors in the shape of rebate, as the new product requires extensive promotions so giving a rebate to them would lead to an increased sales of the product, because they would get a certain percentage of the sale back. If the distribution channels decide not to carry your product, the best way to still proceed with the innovation is to purchase the online ads, build awebsite, and use email marketing.................................
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