Case

Baukran AG
Part 2

Prof. Dr. R. Fischer Page 1

 The activities of Baukran AG have been aimed at safeguarding sales in recent years; i.e. sustained readiness to
realize customer-specific product variants for A customers with obviously neglecting B and C customers. In the
past, this has repeatedly enabled us to meet the sales and sales plans, but not the profit targets!

The key account manager responsible for the A customers requires a further increase in the Marketing budget to
ensure the defined sales figures. Some sales employess contradict. They demand a significant increase in
development activities and budhets to innovate in new products and thus to obtain sufficient profitability.
The marketing director, so far devoted to his passion for sponsoring his favorite sport of golfing, is at a loss.
Finally, the management commissions the controlling to carry out an analysis on the basis of the available
informations (see following page).

Prof. Dr. R. Fischer Page 2

 Access to Available Information:

Product- Sales Market Share Market Share Number of Sales

Groups (in Mio €) (of Baukran Ltd.) (of competitors) workforce
P1 3,29 40% 60% 2
P2 3,86 5% 95% 3,5
P3 3,16 15% 85% 3,5
P4 1,06 15% 85% 0,5
P5 3,97 22% 78% 4
P6 4,98 45% 55% 3,5
P7 0,73 10% 90% 0,5

Marketing Growth Rate* Market Share** Marketing Budget

(of the strongest competitor) of Product Groups (in Mio €)
P1 8,0% 20% 0,57
P2 -2,0% 50% 1,11
P3 0,0% 30% 1,01
P4 5,0% 20% 0,11
P5 0,0% 30% 0,42
P6 0,5% 30% 0,89
P7 4,0% 45% 0,12

* which is considered high once the marketing growth rate is > 2.4%
** estimated to be high once the related market share is > 1!

Prof. Dr. R. Fischer Page 3