Harper Chemical

1) Segementation(2*2 matrix) and Targeting

Segmenting the Dominite market by end-use applications of cermaic tile and paint by large and small-to medium comapnies

2) Sales Organization changes:

Dominite is currently trying to sell to both large and small companies. It is economical in the long run to sell to large

customers directly and to small companies through a agents or distributors. In the future to sell and to service large customers

Dominite should setup a key account program.

Dominite customer relations and sales for the long term can be improved not only by product services, technical assistance

and joint product development but also by advetising with customers jointly,financing their purchases and by entertaining

key customer managers to stay ahead of the competition. Also long term relation ship can be developed by forming

customer alliance and partner ships.

3) Sales budget Changes:

4) Advertsing and trade shows costs:

Increasing the advertising expense by 20 % in 87 from 86, and 5 % increase in 88 from 87 levels

and remains same as 1988 levels in 89

Although media and print advertising plays a smaller role in advertising than in conusmer marketing, but it

can contribute to development of new market for Dominite by creating a favorable image with potential buyers and

the general public. Also, by advertising Dominite can create a favorable environment for the company's sales

engineer in their direct dealing with dominite customers and their buyers and also at the industry conferences

and trade shows.There fore we propose any increase in advertising expense by 20% in 1987 from 1986 level.And a 5%

increase every year from 1988 on wards. With these advertising increases Dominite brand gains recongnition with

the endusers to infulence their tile and paint manufactures to use Dominite in making their products.

5)Price strategy: Value addition:

Dominite currently positioned as a supplier of the DOminite product in the ceramic tile and paint supply chain industry.

Dominite product should foucs on value added approach instead of just selling the dominite product.

VAlue added position shouldn't be looked just from a cost-plus prespective, as this