Hunter Business Group Team TBA

Question 1
1. What do you think of HBG’s approach?

• They should keep working with supplier in order to decrease cost of good sold by implementing economy of scales with their partner/supplier. They should make them try to work on their price because if Stars TBA does not get profitable it will be a big loss for them too. • The approach to customer that HBG apply is right, they diagnose the needs of the client, they are trying to answer this need with a customized offer with standard products, increase penetration of the others products, they imply the customer in the relationship and they measuring the result. • No I don t agree with the “manage cost given a revenue target”. By allowing a fixed cost to marketing expenses you limit your margin of action. You prevent any extra action that could occur during the year, be benefit to the company and that you did not know about when you plan the budget (Ex tradeshow, particular event, counteract incentive put in place by the competition with a better one and so on. .) • They should try to reduce fixed operating cost while in the meantime focus on the most profitable segment of their customer according to the ratio (Cost/expense), which would be to transfer all D client to C. Despite a lower revenue than A to AA it is more profitable and it is the most realistic outcome according to the external upcoming situation. Despite an important individual effort from customers, it can be largely compensated through a continuing formation of the sales reps since the amount to sell is not that important.

Question 2
How important is the Gold Account program as an incentive to dealers? • The gold account is a good incentive to encourage sales reps to improve market penetration and visibility of the brands through a large range of products. However you can’t force