Northern Lights Case Study

Mr James Slater, Vice President Sales & Marketing, Northern Lights Limited (NLL) has recently received an email from the Vice President and General Manager of Amtron Limited, Mr David Taylor, offering a sponsorship deal to NLL. AML are conducting their annual sales meeting to mix business and pleasure at the Hyatt Regency (*Exhibit A) and have requested Norther Lights Limited to sponsor the event.

Amtron Limited is a rather reputed and significant client for Northern Lights Limited since 1945 and has been in various foundations of business. APL has purchased their raw material from NLL on an annual contract basis regardless of being approached by numerous other suppliers in the market. The firm’s relationship with APL has consistently been proficient. Transactions for contracts have reliably been directed rationally giving great value to both parties.

The marketing strategy implemented by NLL is to bind its advertising and promotions to direct mail campaigns and has concentrated more on noble communiqué and maintaining healthy relationships with its clientele. NLL does not follow any policy that promotes such costs and expenses, nor have they dealt with a situation like this in the past.

This sponsorship request received by NLL is completely new and the factors to accept APL’s offer should be the loyalty shown by them towards NLL for the past seventy years, declining every offer on the table from other competitors. Also, sponsoring an event like this may help NLL to adapt a new strategy which may benefit the company build its image and boost up share values in the market.

On the flip side, declining APL’s offer may lead to damaging the report that NLL has managed to build for so many years of doing business with them.

After duly considering all the factors and points stated above, Northern Light Limited is required to come to a conclusion and make a wise decision on as to whether or not to accept this proposal made by Amtron Limited keeping in mind the...