Sales Proposal for Business-to-Business Collaboration

Introduction

With the changing demand patterns due to different factors affecting the economy, it is crucial to analyze the best-selling products. The current worldwide pandemic makes it challenging for producers and distributors to effectively deliver their products to the final consumers in different parts of the target locations. However, with a sales strategy, it is possible to meet clients’ needs based on their specific purchase points. This sales proposal seeks to provide a MONAT Hair and Skin Products solution, which manufactures the goods, and Shoppers Drug Mart, which is the first distribution contact. In particular, this proposal analyzes product solutions, pricing and financing, promotions and implementation, and timetable.

Product Solutions

One of the many challenges facing Shoppers Drug Mart is that it sells products that have adverse effects on the customers. Therefore, the clients have a negative perception of the seller, even though they know that the products do not originate from the Shoppers Drug Mart. This hurts the business as most purchasers seek alternative products from other wholesalers who believe in research on effects before stocking them. Therefore, the wholesaler must understand the need to have an in-depth insight into hair and skin products to sell them and provide the necessary after-sale services (Brennan et al., 2020). Therefore, MONAT Hair and Skin Products should focus on selling solutions to the Retailer, thus increasing product turnover. The following five points are some of the pillars the manufacturer should use to sell the immediate distributor’s solution.

Considering the Customers’ Points of Pain

It is critical for MONAT Hair and Skin Products to understand its prospects’ business pain. Knowing where the hurts come from, the organization can hone its ability to serve the buyers’ needs. Essentially, this shows that the producers’ focus should not be on selling to the distributors but on the final consumers. For instance, the clients can give feedback such as “the product you sold to me does not address my need.” A less-focused company is likely to answer the buyer, “you may have some allergic reactions to our products.” The company should understand that there is a business pain resulting from such customers’ reviews. For instance, it is possible that the buyers found the products to be a potential solution to their problems, but it results in other complications (Brennan et al., 2020). Therefore, the business should seek further information from the distributors to understand why products have to stay longer in the stores.

Engage the Customers, and the Retailer then Inform Them

MONAT Hair and Skin Products should ensure that when it contacts its prospects, it must ensure that the Retailer’s message targets the business pain, which the distributors face before any other. For instance, based on the example above, the purchases express concerns about the products’ working strategy. The problems may be that they need some directions on using the products or need a different product, which meets their specific needs (Brennan et al., 2020). Therefore, the manufacturer should tell the Shoppers Drug Mart about the particular problem, which leads to the clients’ complications and the solution they wish to offer to increase the Retailer’s sales. This business-to-business (B2B) engagement approach ensures that the distributor’s attention is captured to understand more from the producers concerning the solutions offered.

Focus On the Solution Rather Than the Product

It is essential to understand that the Retailer may have a different avenue for getting the products, which the customers need. Primarily, the shop owners interact with the buyers, hence appreciating their desires and demand patterns more than the producers know. Therefore, if Shoppers Drug Mart is facing a problem with their business regarding skin and hair products, MONAT should focus on analyzing the issue to provide a lasting solution. A good or service will only sell if it solves a given situation, which the targeted customers will pay to address (Brennan et al., 2020). For example, a lotion manufactured by the company is a solution to skin dryness or infections, which the potential buyers face from time to time.

Accentuate the Differences

MONAT Hair and Skins Products should understand that even though it manufactures drugs that the potential customers may require, other companies are majoring in the same line. The market may be saturated with such producers; hence, the retailers may have a wide range to choose from, depending on their clients’ interests (Brennan et al., 2020). However, MONAT should position itself against its competitors and reassure the prospect that its solution is the best in the niche. However, this requires MONAT to demonstrate why it believes its products can help solve the purchasers’ problems. For example, MONAT should show how it can help Shoppers, highlight their differences, and above all, be specific in each solution. For instance, the manufacturer should add quantitative measures into every clarification. MONAT can achieve this specificity by providing testimonials or links to customer reviews in other parts of the country or region where it operates.

Selling the True Value

The company’s value proposition is critical to its success in the market and working with Shoppers Drug Mart. The value should specifically focus on driving revenues, reducing expenses, creating efficiency, and mitigating foreseeable and unforeseeable risks (Brennan et al., 2020). MONAT should build its story by including quantitative metrics, which resonate with the buyers are addressing the mentioned vital drivers. More specifically, the manufacturer should demonstrate that its solution can help reduce the company’s downtime and increase the selling price per unit, thus increasing sales (Brennan et al., 2020). However, the increase in the cost of the product should correspond to customers’ behavior, for example, by increasing the demand.

Supporting Services

The collaboration between MONAT Hair and Skin Products and Shoppers Drug Mart depends on the available business support services. Some of the main areas that require interventions from the manufacturer include providing transportation of the finished products from the factories to the stores. In most cases, producers fail to avail their products to the sellers because they rely on other manufacturers who offer such assistance (Brennan et al., 2020). Thus, a company that produces a specific product does stay with the finished products within their warehouses, waiting for distributors who do not collect them. This affects the B2B operations, hence reducing both sales and productivity.

The other support services that the manufacturer should provide are the warranties or guarantees on the customers’ products. For instance, the producer should assure the buyers that the product being sold to them has been tested and proven to help solve issues they may face. Necessary directions on how to use the products should accompany the product to avoid associated complications. The customers’ confidence and loyalty are thus built around the specific solution (Brennan et al., 2020). The business continues to perform well and save energy, which the Retailer should put to lure the customers.

The manufacturer can also help both the customers and the Retailer to save costs associated with the products. For instance, MONAT should manufacture both skin and hair products and brand them in the most appropriate manner, which can boost sales. Branding should include packaging and advertisement, thus leaving the Retailer with a single task of serving the buyers and addressing their concerns (Brennan et al., 2020). The producer can save the consumers any associated costs, such as education regarding the use of the sold goods. These trainings ensure that the consumers use the products in the right way, which helps them avoid unforeseen complications.

Pricing and Financing

Choosing the price of any particular product or service is one of the most complicated decisions in marketing. Pricing is critical as it relies on both the cost of production and the exchange rates. For instance, when borrowing money for any specific production unit, it is crucial to determine the costs of such capital and transfer them to the final consumer. The production of skins care products, for example, may need raw materials used to make the lotion or drugs, the packing materials, advertisement, transportation, taxation, and storage (Brennan et al., 2020). All these costs must be accounted for in the final price of every unit. Moreover, the manufacturer and the Retailer must profit from their business. Consequently, factoring all these costs and escalating them to the purchaser may be complex and demanding, especially in a market filled with several competitors.

There are some fundamental factors, which determine the final price of any product. These include the price floor, the price ceiling, and the optimum price, which are the minimum, maximum, and favorable prices. The product’s minimum price depends highly on the production costs, which means that the company does not profit from the business venture. On the other hand, the maximum price is determined by the completion and from other companies in the same industry. Lastly, the optimum or market price results from the forces of demand and supply of any product to a specific target (Brennan et al., 2020). Moreover, price cognizance is critical as the government policies on taxes and dumping, transportation, distribution, and resale prices must be considered.

Based on the above-mentioned factors, the final price of the product can be determined in two ways. First, the manufacturer can determine and advertise the final price of the product. The second approach is to allow the Retailer to quote their desired price based on the costs incurred to get the producers’ goods to their stores. MONAT can choose to use the first strategy by agreeing with Shoppers on both sides’ fees and the need to make reasonable profits and increase sales. On the other hand, MONAT can sell the products to Shoppers and allow it to set its intended minimum price. Both ways have their advantages and disadvantages, which any specific dealer can evade. For example, if the Retailer’s price is too much, there will be fewer sales, hence low productivity. On the contrary, if the producers set a minimum price for selling the product and do not leave a reasonable price for the Retailer, the shopper will find an alternative company whose offers result in higher profits.

Promotion

Promotion refers to companies’ attempts to educate, influence, or remind users and B2B users to impact their opinion or give some response. There are various types of promotions, depending on the companies’ targets, objectives, and intentions. The main aim of promoting its products is to elicit an action from the customers or organizations, which form a targeted market (Brennan et al., 2020). A for-profit company promotes its products and services to increase sales and consumption of such items. In MONAT Hair and Skin Products and Shoppers Drug Mart, the business is intended to promote sales and profits. Therefore, both companies are designed to increase their revenues through their collective engagement.

There are different strategies, which can be used in the B2B promotion. For example, the manufacturer can be the sole producer and advertiser of the products, leaving the Retailer with the only service of providing the avenues for exchanging the products with the customer. In other cases, the Retailer may be responsible for promoting and advertising the products sold at their stores. However, B2B partners collaborate and co-create and co-brand the products, thus increasing sales for both organizations (Brennan et al., 2020). Since Shoppers Drug Mart is already established and has functional stores and branded products, it is crucial for MONAT to allow the Retailer to rebrand the products and promote them to meet clients’ specific needs. If this is the case, MONAT should help shoppers with other branding strategies to ensure that the products remain relevant at both the higher and lower levels of operations. For example, the manufacturer should provide a working corporate social responsibility (CSR) to ensure that the brands and the products can have loyal customers in any targeted location. CSR can improve the brand’s public relations, thus supplementing Shopper’s advertising efforts.

Implementation and Timetable

The realization of the B2B strategy can succeed by following a specific timeline, which is designed in table 1 below.

Table 1: Implementation and Timetable

Phase 1: Adoption of the Plan
Date Action Status Update
1/4/2021
  1. Implementation of the collaboration between MONAT Hair and Skin Products and Shoppers Drug Mart.
  2. Delivering products to Shoppers Drug Mart.
1/5/2021 Review of the collaboration and product flow and the recommendations from the collaboration.
Phase 2: Adapting the Recommended Business Approaches
Date Action Status Update
1/6/2021 Advertisements and Promotions
1/7/2021 Assessing the impacts of advertisement and promotions and the recommendations.
1/8/2021 Research on the community needs for CSR interventions
1/9/2021 Launching MONAT Hair and Skins Product’s CSR.
Phase 3: Transformations
Date Action Status Update
1/1/2022 Organizational change
  • – identifying the needs for Training, development of new establishment and processes, and launching new products
1/4/2022 Analysis of key Success indicators:
  • These include content, social media, and service and production efficiency.

References

Brennan, R., Canning, L., & McDowell, R. (2020). Business-to-business marketing. Sage.

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