ALTO CHEMICALS

Group B3

CASE FACTS
ALTO North American MNC Production, marketing of commodity and specialty chemicals. ACE regional headquarters ACE accounted for 1/3rd of total production of ALTO Chemicals Matrix Organization

Problems
Volume based Sales Decentralized pricing policy Low ASP (Average Selling Price) Target Segment Less devoted for conversion of customers.

Strategy Evolution
INITIAL STRATEGY Entry into the Market through Barium stabilizer. Barium production through third party producers. Inducing conversion by pricing TIN stabilizers 2-3% lower than barium prices.

STRATEGY
CURRENT STRATEGY Non-Price Selling focus on competitive advantage (expert sales force, Superior technical service, supreme product quality). New conversions from less price sensitive accounts. Initiate Price leadership. Centralization

SALES MANAGEMENT Response

Declining Economy increase in price absurd Increase in both volume and price don t go hand in hand Volume from large accounts = volume from SME. (But time taken increases) Unhappy regarding the decision making taken away. Is higher price justified for converted customers?

Implementation
Gradual increase in price Providing VAS ( technical know-how, quick service, product quality) Focus on medium-scale industries, strategic customers, wire and cable industries. Position as premium player ( The complete solution providers).

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