Alto Chemicals Europe Case Study Example | Topics and Well Written Essays - 500 words

Alto Chemicals Europe - Case Study Example Graaff suggested that the company should focus on its strengths and resort to ‘non-price’ selling. The skillful sales force should highlight superior technical service and ACE’s reputation as a reliable supplier while closing a sales deal. Graaff strongly advocated that the sales force should focus on converting more accounts from Barium to Tin. The intent was to generate business from small and medium-sized firms. Customer segments like wire and cable that were not price sensitive were also to be targeted under the new strategy to prevent price erosion. As a rule, ACE was to adopt the strategy of price leadership and not compete in the market merely by ‘meeting Barium prices’. Graaff envisaged that central coordination would help in regional optimization. Thus the headquarters took on the role of setting price and volume targets for the subsidiaries. In general, ACE was to pay less attention to low price markets and focus on high price markets. Compensation Plan The initial reaction from the sales personnel suggests that they are averse to the changes put forth by Graaff. Therefore a suitable compensation plan is to be devised to motivate the sales force to adopt the new strategy. It is recommended that the sales personnel are given incentive on each account they convert from Barium to Tin. A fixed, upfront amount should also be paid to them when they a small and medium-sized enterprise becomes a customer.