B2B ASSIGNMENT

Dominion Motors

Group 9
Bharat Singh (1601127)
Tandra Jaiswal (1601049)
Bijay Krishna (1601129)
Pranay Kadam (1601034)
Cherishma (1601078)
Aditya Gautam (1601122)
 Key Issue Facts
Failing to adapt to 1. DMC executives believed it had
environmental been succesful because of "ONE"
change salesperson hired in 1974.
2. Oil fields were discovered in 1973,
by 1984 there were approximately
5,500 wells.
3. In 1985, DMC was threated with
the loss of market leadership
because of the tests done by
Hamilton oil company.
4. Trade Journals and catalogs were conferences, whitepapers to
used for advertising and promotion project their thought
strategy.
5. In 1984, power rates were
changed to a slab based structure
penalizing higher HP motors with
6. Although the tests were
completed by early 1985, DMC
executives became aware of them
in March only.
Analysis Inference Objective Approach Learning
Conduct seminar and workshops
Due to market being in nascent stage As the environment
by inviting all buyers to inform them
customers were ignorant. Hence, one Retain the changes, so the decision
Market was in nascent stage in about the product and gain their trust
salesperson with technical knowledge leadership in making unit also changes. The
1974. to keep buying motors from DMC,
was able to make the company market. point of contact also changes
which will help to retain the market
succesful. accordingly.
share.
Being a leader, they should There should be
inform the changes in environment continuous contact with the
Customers who were ignorant before
Market was approaching a and market and its impact on the buyer and supplier for better
had enough time to develop expertise
mature stage. stakeholders. So that all will follow the relations even during off
about the products.
leader which subsequently results in seasons and factual changes in
market leader. economy/market.
DMC didn't put efforts to
maintain their market leader
Customers became knowledgeable,
image so the customers
hence they started setting up their
started taking ownership of
own criteria for purchase.
managing change in
environment.
DMC was not using
DMC did not have a marketing strategy
which aligns with their industry leader
leadership and technical status.
leadership in the market.
These factors amplified the change in
Oil companies would prefer
environment caused by changing level
lower HP motors now.
of customer knowledge.
DMC was not contacting the
correct department within The DMU in Hamilton changed to "Test
Hamilton. They were possibly Engineers" rather than "Rig Supervisor"
still in touch with rig due to cusomer becoming more
supervisor who might not be knowledgeable.
well informed about the tests.
 Challenges Faced by
Sources Ways to Overcome Indian Example
marketing manager of DMC
Industry was approaching mature
1. DMU had changed in Hamilton phase and the customers became Detecting the change in
from Rig Supervisor to Test knowledgeable and strated buying situation of the
Engineer due to changes in building their own technical customer at the right point of
environment. teams. time.
Pitch to the customer that
2. Increase in customer's Introduction of slab based pricing total cost of ownership will
perceived cost due to tariff penalizing usage of higher HP remain the same by bearing
changes. motor. the usage cost.
Perform frequent leadership
activities such as Dazo, an Indian food tech. startup which started as an internet
conferences, publishing kitchen with its own chefs could not survive a change in
Competitor supplier, most whitepapers so that environment. Due to growth it had to partner up with restaurants. It
probably Spartan motors companies always look upto failed to manage its customers (Restaurants) properly and hence
3. Hamilton's torque criteria. suggested this approach to briggs. DMC in the wake of change. failed.
 What should Ramanathan do?
Once he receives the order on urgent basis, he should visit the production department and
take a round, see all the machinery and tools. Then he should make a list of all the spare
parts that are in his product line and offer them an annual maintenance contract to lock and
block the customer. He should negotiate a reasonable price so that the purchase manager
will not resist due to high costs.

Buying process Analysis

How does it impact product or vendor decision? Approaches for supplier to get his product and vendor qualifed
Toolkit :- 1.Buying Situation

1.Need for extensive problem solving approach 1.Since the existing suppliers has already an edge over others the new
2.Need for significant information of products and suppliers should:
suppliers 2.Involve in initial product development phases
3.Emphasis on quality, price and technology aspects of the 3.Identify problems faced by buying organisations
New task product 4.Isolate buyer's exact requirements and offer proposals proactively.
1.In-suppliers (on the approved vendors list) should strengthen their
relationship with buyers, meet their expectations and responsive to
their specifications constantly
1.Little overhead in information search because of existing 2.Out-suppliers should negotiate to gain the leads and convince the
familiarity between buyers and suppliers. buyers to avail their products/services.
2.Routine problem solving approach is followed by buyers.
3.High awareness levels of buyers reduced the overhead
in information search and purchase decision process.
Straight Rebuy

1.In-supplier should understand and satisfy the requirements of their

1.Buyers tend to seek benefits from different altervatives. buyers and convince them into a straight rebuy
2.Evaluate the trade-offs between existing and other 2.New suppliers should be in good terms with the buyers long enough
suppliers in the market in terms of quality, cost and to build a good transactional relation between them.
Modified Rebuy service
2.Buying Process
1.Important both the buyers and the suppliers.
2.Impact the buyers-suppliers relationship(both existing
and new suppliers) Responsive marketing should be followed by the suppliers in order to
The transaction( purchase ) 3.Transforms current state of transaction of buyers to maintain Straight buy for existing suppliers and New Task
process desired state of transaction. Buy/Modified Buy for the new players.
3.Decision Making Units
DMU evolves during the
buying process. It is a group
of individuals from
different areas of expertise 1.Responsible for all the transactions between suppliers
critical for the purchasing and the buyers.
decision. The DMU takes 2.Buying situation dependent on them.
shape in response to the 3. Organisational (infrastructural and operational ),
needs and specific financial, economical and environmental decisions Suppliers/vendors should influence DMUs in order to grab the best
requirements of buyers. dependent on them. deals for themselves, and also to sustain themselves.
4. Roles

1.All these roles play an important part on product/vendor

Buying party consist of 6 decision on the basis of their knowledge and information
different roles:- Users, they hold. Supplier should focus on each and every role and their individul
Gatekeepers, Influencers, 2. Important for every B2B transaction in the market. differences, thus doing responsive marketing in order to grow and
Deciders, Initiators, Buyers 3.Risk redustion or increment happen through them. sustain.