Here is how EnviroPure could solve some of its marketing and business-related problems:
Selling to retailers will only
be profitable if there
is either no
commission for
salespeople to sell to retailers or a reduced
commission. It costs Manny $200 to purchase a unit; if he sold it for $275
to a retailer and paid $80-100 commission to a salesperson, he would
obviously be losing money.Depending on how much profit Manny is making each
month (one may note on the numbers sheet that there is still some
information that hasn’t been provided), he should consider purchasing some
radio airtime or magazine space and furnishing a 1-800 number for
potential clients to contact the telemarketers themselves. This would
allow additional appointments to be made without hiring additional
telemarketers or salespeople. The current phone people could handle both
types of calls, because on average an incoming call will be more
profitable to the company than an outgoing “cold” call.Environmental Control, Inc. furnishes plenty of
training materials for salespeople. If Manny really thinks that his
salespeople could be selling twice as many units, there must be something
they’re not doing right. He should take advantage of these training
materials and force the salespeople to be “re-certified” once every year
or two.Manny should implement a sales promotion for past
customers. Customers that refer future clients can receive a $40 coupon
for a filter if their referral purchases a system. There should be no
limit on the number of coupons a person could get. This would convince
some customers to act as salespeople on their own in order to save
themselves some money. Enviro would profit because they’d be making sales
that didn’t require them to pay commission. The company would save an
extra $40-60/unit and sales would also increase.He could provide Enviro Pure filtered water for a
sports event. If he became a sponsor, he would get great media exposure
and possibly be able to find an athletic spokesperson. If the taste really
is different, people will notice and talk about it.According to a number analysis, Enviro is not doing
poorly as a company but it could still be doing better. The biggest key to
Manny’s marketing strategy should be more advertising. One-on-one sales
work for small-scale operations, but with a small amount of advertising,
the units would be selling themselves. He should use the materials
provided by the parent company!