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    Columbia Industries, Inc.: B2B MARKETING - Case Analysis

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    gs randhawa
    Columbia Industries is a manufacturer of plumbing products that is experiencing issues with the reliability and capacity of its current fleet of Hyster forklifts. This is leading to increased downtime, safety risks, and an inability to keep up with rapid sales growth. The company is evaluating replacement options from five suppliers and will select one based on demonstrations and proposals reviewed by key decision makers including the plant manager and industrial engineer. Yale and Caterpillar are two options under close consideration based on their specifications and procurement strengths.

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    Columbia Industries, Inc.: B2B MARKETING - Case Analysis

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    gs randhawa
    34 views13 pages
    Columbia Industries is a manufacturer of plumbing products that is experiencing issues with the reliability and capacity of its current fleet of Hyster forklifts. This is leading to increased downtime, safety risks, and an inability to keep up with rapid sales growth. The company is evaluating replacement options from five suppliers and will select one based on demonstrations and proposals reviewed by key decision makers including the plant manager and industrial engineer. Yale and Caterpillar are two options under close consideration based on their specifications and procurement strengths.

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    Columbia Industries is a manufacturer of plumbing products that is experiencing issues with the reliability and capacity of its current fleet of Hyster forklifts. This is leading to increased downtime, safety risks, and an inability to keep up with rapid sales growth. The company is evaluating replacement options from five suppliers and will select one based on demonstrations and proposals reviewed by key decision makers including the plant manager and industrial engineer. Yale and Caterpillar are two options under close consideration based on their specifications and procurement strengths.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    34 views13 pages

    Columbia Industries, Inc.: B2B MARKETING - Case Analysis

    Uploaded by

    gs randhawa
    Columbia Industries is a manufacturer of plumbing products that is experiencing issues with the reliability and capacity of its current fleet of Hyster forklifts. This is leading to increased downtime, safety risks, and an inability to keep up with rapid sales growth. The company is evaluating replacement options from five suppliers and will select one based on demonstrations and proposals reviewed by key decision makers including the plant manager and industrial engineer. Yale and Caterpillar are two options under close consideration based on their specifications and procurement strengths.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 13

    PGDM 2013-2015 | B2B-B | Group-1

    B2B MARKETING | Case Analysis

    COLUMBIA
    INDUSTRIES, INC.
    COLUMBIA INDUSTRIES INC.

    950 employees (550 in Vancouver) Annual sales: $176mn ($102mn in Vancouver)

     
    Company Info Core Business
    Established in 1948 in Vancouver, British Columbia CI product Line includes:
    • Largest manufacturer of code-approved • Couplings
    products for connecting, reducing, repairing
    • Flex seal couplings
    pipes used in sewer and drain waste
    applications • Large diameter repair couplings
    • Expanding internationally – new branches in • Inflatable plugs
    Toronto and Los Angeles • Specialty couplings
    • Large network of specialized distributors, supply
    houses and mass merchandisers for serving
    customers

    • BUSINESS MARKET CUSTOMER COMMERCIAL ENTERPRISES- User


    • PRODUCT- Foundation Good, Accessory Equipment
    ISSUE, CONSEQUENCES AT CI

    ISSUES
     High lift-truck downtime
     Stability of Hyster lift-trucks at full load
     Addressing CI’s rapid expansion (sales &
    demands)

    CONSEQUENCES
     High maintenance expenses
     Risk to performance
     Safety of lift-truck drivers
     Inability to deliver timely
     Loss of valuable clients
     Impact on revenue generation
    BUYING CENTER- Individual Roles & Responsibilities

     Personal Stakeholders
     Lift-truck operators
     Lift-truck mechanic
     Plant Engineer
     Industrial Engineer
     Influential members
     Stuart West- Industrial Engineer
     Experts
     Lift-truck mechanic
     Jacques Debre- Plant Manager
     Sandra Ogrosky- Plant Engineer
    BUYING SITUATION

     Modified Rebuy Situation


     Benefits derived by reevaluating lift –truck supplier alternatives
     Well defined basic criteria
    ○ 260” lift height
    ○ Total Lift- Stability of counterbalanced fork-lift truck at full load/mast
    ○ Quality, Reliability over life cycle- Performance factors such as turning radius
    ○ Easy but low maintenance costs & efforts for engineers
    ○ Short learning curve for operators
    ○ Quick service options by supplier- Supplier proximity for engineering functions

     Buying Decision Approach


     Simple modified rebuy
    BUYGRID FRAMEWORK- CI’s Buying Situation

    1. PROBLEM RECOGNITION
    CI’s Hyster lift trucks are not operationally safe, not reliable, and not sufficient in
    number to address business requirement

    2. GENERAL DESCRIPTION OF NEEDS


    Purchase of 7 new lift trucks with stability at full loads and fully extended masts, and
    conforming to technical specifications

    3. PRODUCT SPECIFICATIONS
    Total lift of at least 260 inches (mast fully extended )
    Stability at full load
    Lower turning radius for better maneuverability, low width of truck

    4. SUPPLIER SEARCH
    Purchasing Department: Company policy mandated narrowing down of suppliers were narrowed
    down to 5 brands of lift trucks (safety, down time, service)
    Contacting each supplier and request quotes and demonstrations

    5. ACQUISITION & ANALYSIS OF PROPOSAL


    Demos to truck operators and mechanics, Presentations to management
    Final analysis done by West and Ogroasky; final decision with Debre

    SUPPLIER SELECTION
    SEGMENTING PURCHASE CATEGORY

    High
     Revenue Impact/Business risk
    Telemarketing
    Critical Components  Impact of purchase on corporate revenues
    over time- High
    Branded Finished Goods
    High tech
    products/services
    Advertising
    Outsourced
    Revenue Manufacturing functions  Procurement Complexity Considerations
    Impact /  Level of complexity of the cost drivers of
    Business
    Risk purchase
    ○ Technology/ design complexity- Medium-High
    Travel
    Professional Services ○ Scope of supply chain integration - High
    Office Supplies
    Benefits ○ Relevance of lifecycle costs- High
    Logistics  Trade-off between focus on impact on
    Materials revenue generation or greatest risk to
    Low performance
    Low Procurement Complexity High
    FORCES INFLUENCING BUYING BEHAVIOR AT CI

    ENVIRONMENTAL Growth in British Columbia/ Vancouver regional economy- Population growth,


    FORCES housing, municipal development- Growth in domestic market for CI products

    ORGANIZATIONAL Rapid expansion of company- Vancouver plant’s sales & demands


    FORCES Growing Customer Defection- Low operational capacity, untimely delivery

    Buying Behavior
    at CI Influential members’ group- Debre, West, Ogrosky
    GROUP FORCES PLANT UNION: Lift Truck Operators’ group- Operational safety
    Lift Truck Mechanics’ group-- Manitenance

    Jacques Debre, Plant Manager- Position, Experience, Hesitance to purchase from


    a brand with no previous mutual business
    INDIVIDUAL Stuart West, Industrial Engineer- Expertise, influence, interaction with company
    FORCES salesmen
    Sandra Ogrosky, Plant Engineer- Plant maintenance, reduction of downtime-
    Performance monitoring, productivity analysis
    COMPARISON- Suppliers & Performance Factors

    Dimensions Yale
    û
    Komatsu Caterpillar
    û
    Hyster
    û
    Toyota

    Demonstration ü û ü ü ü

    Performance ü NA ü û û

    Trade-in Yes No No Yes No

    Service Proximity ü û ü û NA

    Warranty 3750 2250 3000 5000 4500

    Follow-up (salesman) weekly No 2 weeks weekly 2 weeks

    Operator’s Confidence ü û ü û û

    Mechanic’s Confidence ü û ü ü ü
    YALE vs. CATERPILLAR- Technical Specs

    Dimensions
    ü
    Yale Caterpillar

    Turning Radius (Maneuverability) 78.7 79

    Lifting Speed (E/F) 133/117 fhp 112/104 fhp

    Travel Speed 10.9 mph 10.5 mph

    Total Lift 265 > 260 262 > 260

    Total Cost (including trade-in) $17,380 $20,990


    YALE vs. CATERPILLAR- Procurement Trends

    YALE CATERPILLAR

    Supplier proximity consideration  

    Longer term - Closer relationship  

    Closer interaction across products/functions  


    Thank You
    References
    Hutt, M., & Speh, T. (2012 ). Business Marketing Management: B2B. Cengage Learning.

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