Pricing Strategy at Officenet Staples Published by the Case Research Journal IT system used by Officenet Staples ON serves simply as a customer database it does not create value Online sales will be focused after ON gets their discounting down ID: 636218
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Slide1
Case Study By: Hannah McArthy
Pricing Strategy at Officenet Staples
Published by the
Case Research JournalSlide2
IT system used by Officenet Staples (ON) serves simply as a customer database, it does not create value.Online sales will be focused after ON gets their discounting down.B2B will remain ON’s customer focus.
Managers are incentivized on how well their subordinates sell.Market share is not an issue for ON.Staples will continue to not interfere with ON’s management system.
There are no issues with pricing in regards to the Argentina government.
ON does not compete on price with competitors, because their price is usually higher. ON does not have a problem distributing items to each customer segment.
AssumptionsSlide3
Officenet Staples needs to increase its sales, multiple items within the corporate culture of the business are hindering this goal.Pricing policies currently implemented are not profitable.
Pricing goals were not aligned when set.
Pricing is not being aligned with customer value without the discounts.
Compensation system is not effective, the sales staff is working for the consumers.Giving discounts on 4 out of 10 products (employee empowerment).
Compensation system is based on dimensions that encourages discounting.
Dollar sales
ProblemsSlide4
Align pricing goals throughout the companyFocus on price being set to value Improving service
Changing the incentive schemeDecrease discounts
RecommendationsSlide5
Implement a CRM program.Train sales representatives on using techniques that reinforce the price points by focusing on the added value of product or service. Sales representatives incorporate social media.
Change the compensation system to align with organization’s goals. Continue to have employees empowered; however, align the compensation system to hinder discounts Based on gross profit, instead of sales.
An annual cash profit
sharing plan needs to be incorporated into the incentive plan.
implementationSlide6
Agnihotri, R., Kothandaraman, P., Kashyap
, R., & Singh, R. (2012). Bringing "Social" into Sales: The Impact of Salespeople's Social Media Use on Service Behaviors and Value Creation. Journal Of Personal Selling & Sales Management, 32(3), 333-348.
Anderson
, E., & Onyemah, V. (2006). How Right Should the Customer Be? (cover story). Harvard Business Review,
84
(7/8), 59-67. Anderson, R. E., & Huang, W. (2006). Empowering Salespeople: Personal, Managerial, and Organizational Perspectives.
Psychology & Marketing
,
23
(2), 139-159.
doi:10.1002/mar.20104
Bos, P.A. (2010). How to Build a Profit Sharing Plan. Inc. Retrieved Nov 4, 2013 from http://www.inc.com/guides/2010/04/profit-sharing-plan.html#/guides/2010/04/profit-sharing-plan.htmlCompensation Strategies: What HR Programs Work for a Company in Crisis?. (2011). Report on Salary Surveys, 18(8), 9-10.Ghosh, A. (2013). Employee Empowerment: A Strategic Tool to obtain Sustainable Competitive Advantage. International Journal Of Management, 32(1), 95-107. Lopez, T., Hopkins, C. D., & Raymond, M. (2006). REWARD PREFERENCES OF SALESPEOPLE: HOW DO COMMISSIONS RATE?. Journal Of Personal Selling & Sales Management, 26(4), 381-390.
References