promoting the business
1. In promoting their services to the Manchester region Peter and Harvey intend employing a sales force. Discuss why you think that this is a suitable way of promoting the business. In addition, analyse the options available to the brothers with regards t
CASE STUDY
SaxonPlumbing Services London Ltd*

Saxon Plumbing Services London Ltd (SPSL) was founded in 2000 by two brothers – Peter and HarveyBlair. The company currently employs 40 staff, the majority of which are based at its Head Office in South London, UK. Last year (2011) the company generated a turnover in excess of £5.0m and a gross profit of £1.2m.

Company Background
SPSL specialises in commercial plumbing services for businesses located in South London. Clients include: small and medium sized retailers, manufacturers, distributors and insurance companies. The company has built a reputation for providing a reliable, efficient and friendly service. Given the firm’s excellent reputation, the majority of its business is gained through word-of-mouth recommendation. Recently it has decided to build on its reputation by developing an office in Manchester.SPSL has looked at a number of possible locations in Manchester, and has finally chosen a location north of the city centre. The hope is that the company’s winning formula for London will work equally as well in the Manchester area.

The Commercial Plumbing Market
The commercial plumbing market is highly competitive and is experiencing significant growth. At the same time, it is a very fragmented market made up of a large number of small and medium sized enterprises, with indifferent service and generally a poor reputation. SPSL is competing with both locally based companies, and those that have extensive national networks. However, SPSL prides itself on its ability to compete with other firms through its excellent customer service, and fast emergency response time of within three hours.

Service Provision
SPSL provides a range of plumbing services. These include: leak repair, leak detection, drain cleaning, toilet repair, radiators and general maintenance. All plumbers are fully qualified in all areas of plumbing. In addition, they regularly attend training sessions on customer service and the latest developments in the sector. The company’s service provision is 24 hours a day, 365 days a year.

Market Segments
SPSL’s client base includes a wide range of commercial organisations. These include everything from small industrial companies to relatively large insurance companies. Market segmentation is usually based on company size, geographical area and possible demand. Peter and Harvey are wary that the company only has a limited number of resources and at this stage it would be unrealistic to look at serving large multi-national companies, as well as internationalisation. The priority at this stage is to increase awareness and market share within its region.

Organisational Structure
SPSL is organised as follows:

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promoting the business