Case Study 1

MKGT577 

Week 2 Case study Analysis

Omnico, Inc.

Taylor Hoagland

Professor Lynn Szostek - May, 15, 2016

Table Of Contents

Statement of the Problem _______________________________________________________ 3

Summary of the Facts _________________________________________________________ 3

Analysis _____________________________________________________________________ 4

Recommendations ____________________________________________________________ 4

Conclusion __________________________________________________________________ 5

References __________________________________________________________________ 6

Statement of the Problem

According to Ominco, Inc.’s newly appointed sales manager and longtime sales associate Buddy Towers, Omnico, Inc. is consistently below its industry average in customer retention. The company has assessed that costs are considerably more to attract new customers, rather than retaining existing customers. At the end of the day, the ultimate question is how should Omnico, Inc. go about facing this challenge?

Summary of the Facts

In this particular case study, Mr. Towers is an experienced sales associate that has been a top performer for over 20 years within Omnico, Inc. His success over time has brought the company many of its loyal customers. The CEO/President of Omnico, Inc. felt it was simply natural to offer the Sales Manager position to Mr. Towers, due to his proven interpersonal relationship skills and his own loyalty to the company. There was a strong belief amongst upper management that Mr. Towers had the ability to get sales moving forward and retain more long-term customers. After reviewing the Omnico, Inc. market research report, Mr. Towers uncovered that the company spends more money on acquiring new clients rather than maintain current ones. Mr. Towers discussed his concerns in a sales meeting and explained how imperative it is that employees appreciate customer relationships and emphasized the need to build personal...