S.C.Johnson & Son, Inc., produces a range of well-established consumer products such as PLEDGE furniture polish, GLADE air fresheners, SHOUT laundry soil and stain remover, OFF insect repellant, RAID insecticides, and WINDEX glass cleaner. Each of these brands enjoys a strong position in the market. Through its Professional Division, the firm is also a leading producer of products and services for commercial, industrial, and institutional building maintenance and sanitation. The products include a complete line of specialty formulated cleaners, floor finishes, disinfectants, furniture polishes, and products for insect and odor control.
The Professional Division serves a diverse array of organizations in the business
market such as retailers, health-care organizations, and educational institutions. Customers are served directly by the company's sales force or by a large network of distributors. Organizations follow two alternative approaches to building or store maintenance: the job is performed by its own personnel or it is "outsourced" to a building services contractor who regularly brings a trained staff on site to clean the facility
Maintaining a sparkling and professional appearance is a desired goal in any
organization but, for many, a continuing challenge. Consider the heavy store traffic that retailers such as Wal-Mart generate each day or the stream of shoppers who visit a supermarket around the clock. Some retailers spend $100,000 per store each month in cleaning, floor care, and maintenance programs. For large chains with hundreds of stores, this represents a massive expenditure. Included here are the costs of the cleaning products, labor and equipment costs, training expenses, and costs related to regulatory compliance. At a more fundamental level, retail store managers may be even more concerned about other costs—the lost sales that could arise from consumer concerns about cleanliness, food sanitation, or the unsightly appearance of a store. Moreover, there are safety concerns that worry store managers. A slippery floor that causer a shopper to slip and fall may lead to costly legal action against the retailer.
To meet the needs of organizational customers, the Professional Division at S.C.
Johnson has developed an array of products and services. For a particular customer like a supermarket chain, the salesperson will recommend a particular range of products and employee training programs to meet the unique needs of the retailer. Special dispensing systems (Solutions Centers) have been developed by S.C.Johnson to assist users in pinpointing the proper dilution level of the company's products to meet different floor-care maintenance tasks. The Professional Division also provides ongoing technical support to a customer. Each year, the unit receives over 30,000 calls from customers on issues that range from product selection for particular types of floor surfaces to environmental or safety queries.
Questions
1. In purchasing cleaning products and services, which of the following
managers might be members of the buying center at a discount retailer, like Wal-Mart or Target: A purchasing executive at the headquarters level, store managers, a merchandising executive, a marketing manager, a maintenance staff supervisor, or maintenance employees? Who would be most influential in the buying decision? 2. Describe how the evaluative criteria employed by the purchasing manager might be different from those that are important to users. 3. Explore how the needs of a health-care organization might differ from the needs of a retailer in purchasing cleaning products and services. What adjustments in marketing strategy might be pursued by the Professional Division in the health care sector?