COLUMBIA

INDUSTRIES, INC.
PGDM 2013-2015 | B2B-B | Group-1
B2B MARKETING | Case Analyss


Company Info
Established in 1948 in Vancouver, British Columbia
ar!est manufacturer of code"approved
products for connectin!, reducin!, repairin!
pipes used in se#er and drain #aste
applications
E$pandin! internationally % ne# branches in
&oronto and os 'n!eles
ar!e net#or( of speciali)ed distributors, supply
houses and mass merchandisers for servin!
customers
Core Business
CI product ine includes*
Couplin!s
+le$ seal couplin!s
ar!e diameter repair couplin!s
Inflatable plu!s
,pecialty couplin!s
9-. employees /--. in Vancouver0 'nnual sales* 1123mn /11.4mn in Vancouver0
B!"INE"" MARKET C!"T#MER C#MMERCIA$ ENTERPRI"E"- !ser
PR#D!CT- %oun&a'on Goo&( A))essory E*up+en'
C567BI' I896,&:IE, I8C;
I,,6E, C58,E<6E8CE, '& CI
I""!E"

=i!h lift"truc( do#ntime

,tability of =yster lift"truc(s at full load

'ddressin! CI>s rapid e$pansion /sales ?

demands0
C#N"E,!ENCE"

=i!h maintenance e$penses

:is( to performance

,afety of lift"truc( drivers

Inability to deliver timely

oss of valuable clients

Impact on revenue !eneration

B6@I8A CE8&E:" Individual :oles ? :esponsibilities

Bersonal ,ta(eholders

ift"truc( operators

ift"truc( mechanic

Blant En!ineer

Industrial En!ineer

Influential members

,tuart Cest" Industrial En!ineer

E$perts

ift"truc( mechanic

DacEues 9ebre" Blant 7ana!er

,andra 5!ros(y" Blant En!ineer

B6@I8A ,I&6'&I58

Mo&-e& Re.uy "'ua'on

Benefits derived by reevaluatin! lift %truc( supplier alternatives

Cell defined basic criteria

F
43.G lift hei!ht
F
&otal ift" ,tability of counterbalanced for("lift truc( at full loadHmast
F
<uality, :eliability over life cycle" Berformance factors such as turnin! radius
F
Easy but lo# maintenance costs ? efforts for en!ineers
F
,hort learnin! curve for operators
F
<uic( service options by supplier" ,upplier pro$imity for en!ineerin! functions

Buyn/ De)son Approa)0

,imple modified rebuy

B6@A:I9 +:'7EC5:I" CI>s Buyin! ,ituation
11 PR#B$EM REC#GNITI#N
CI>s =yster lift truc(s are not operationally safe, not reliable, and not sufficient in
number to address business reEuirement
21 GENERA$ DE"CRIPTI#N #% NEED"
Burchase of 2 ne# lift truc(s #ith stability at full loads and fully e$tended masts, and
conformin! to technical specifications
31 PR#D!CT "PECI%ICATI#N"
&otal lift of at least 43. inches /mast fully e$tended 0
,tability at full load
o#er turnin! radius for better maneuverability, lo# #idth of truc(
21 "!PP$IER "EARC3
Burchasin! 9epartment* Company policy mandated narro#in! do#n of suppliers #ere narro#ed
do#n to - brands of lift truc(s /safety, do#n time, service0
Contactin! each supplier and reEuest Euotes and demonstrations
51 AC,!I"ITI#N 4 ANA$5"I" #% PR#P#"A$
9emos to truc( operators and mechanics, Bresentations to mana!ement
+inal analysis done by Cest and 5!roas(yJ final decision #ith 9ebre
"!PP$IER "E$ECTI#N
,EA7E8&I8A B6:C=',E C'&EA5:@

Re6enue I+pa)'7Busness rs8

Impact of purchase on corporate revenues

over time" =i!h

Pro)ure+en' Co+ple9'y Cons&era'ons

evel of comple$ity of the cost drivers of

purchase
F &echnolo!yH desi!n comple$ity" 7edium"=i!h
F ,cope of supply chain inte!ration " =i!h
F :elevance of lifecycle costs" =i!h

&rade"off bet#een focus on impact on

revenue !eneration or !reatest ris( to
performance
A d v e r t i s i n g
B r a n d e d F i n i s h e d
G o o d s
T e l e m a r k e t i n g
Critical Components
High tech
products/services
Outsourced
Manufacturing
functions
Travel
Ofce upplies
M a t e r i a l s
! o g i s t i c s
B e n e " t s
# r o f e s s i o n a l e r v i c e s
High
High
Low
Low
Re6enue
I+pa)' 7
Busness
Rs8
Pro)ure+en' Co+ple9'y
+5:CE, I8+6E8CI8A B6@I8A BE='VI5: '& CI
Buyn/ Be0a6or
a' CI
EN:IR#NMENTA$
%#RCE"
Gro;'0 n Br's0 Colu+.a7 :an)ou6er re/onal e)ono+y" Bopulation !ro#th,
housin!, municipal development" Aro#th in domestic mar(et for CI products
#RGANI<ATI#NA$
%#RCE"
Rap& e9panson o- )o+pany" Vancouver plant>s sales ? demands
Gro;n/ Cus'o+er De-e)'on" o# operational capacity, untimely delivery
GR#!P %#RCE"
In-luen'al +e+.ers= /roup" 9ebre, Cest, 5!ros(y
P$ANT !NI#N> $-' Tru)8 #pera'ors= /roup- 5perational safety
$-' Tru)8 Me)0an)s= /roup-" 7anitenance
INDI:ID!A$
%#RCE"
?a)*ues De.re( Plan' Mana/er" Bosition, E$perience, =esitance to purchase from
a brand #ith no previous mutual business
"'uar' @es'( In&us'ral En/neer" E$pertise, influence, interaction #ith company
salesmen
"an&ra #/ros8y( Plan' En/neer" Blant maintenance, reduction of do#ntime"
Berformance monitorin!, productivity analysis
C57B':I,58" ,uppliers ? Berformance +actors
D+ensons 5ale Ko+a'su Ca'erpllar 3ys'er Toyo'a
9emonstration $ % $ $ $
Berformance $ 8' $ % %
&rade"in @es 8o 8o @es 8o
,ervice Bro$imity $ % $ % 8'
Carranty K2-. 44-. K... -... 4-..
Follow-up (salesman) #ee(ly 8o 4 #ee(s #ee(ly 4 #ee(s
Operators Confidence $ % $ % %
Mechanics Confidence $ % $ $ $
% % %
@'E vs; C'&E:BI':" &echnical ,pecs
D+ensons 5ale Ca'erpllar
&urnin! :adius /7aneuverability0 28;2 29
iftin! ,peed /EH+0 1KKH112 fhp 114H1.4 fhp
&ravel ,peed 1.;9 mph 1.;- mph
&otal ift 43- L 43. 434 L 43.
&otal Cost /includin! trade"in0 112,K8. 14.,99.
$
@'E vs; C'&E:BI':" Brocurement &rends
5A$E CATERPI$$AR
,upplier pro$imity consideration
on!er term " Closer relationship
Closer interaction across productsHfunctions
Thank &ou
'eferences
Hutt( M)( * peh( T) +,-., /) Business Marketing Management: B2B.
Cengage !earning)