ABM AIRwide

NURI Kevin, SHAW Ethan, CHAUDRON Matthieu, TORRANO Alexandre        B3 ½ MBI

1. Explain the actions implemented by Airwide's sales management at each stage of the sales funnel (see diagram below)? What were the results obtained at each of these stages?

In the Airwide case study, the sales management team, represented by Wei Xiuping and Simon Zhang, implemented various actions at different stages of the sales funnel to address the sales stagnation and losses they were experiencing.

Here are the actions and results at each stage:

1. Awareness

Airwide tried to bid on almost twice as many opportunities as before, including new construction and remodelling projects they would not normally know about.

Result: Despite the increased bidding activity, they still lost several significant opportunities, discrediting the brand and reputation.

1. Discovery

The sales team cultivated new relationships and were introduced to new architects, which led to more opportunities to bid on.

Result: Even with beneficial new relationships and increased efforts, the expected increase in sales did not materialize.

1. Evaluation

In response to the challenges, quotas were raised to motivate the sales team, and a sales competition was introduced.

Result: The measures seemed to discourage rather than inspire the sales force, indicating they were possibly overburdened or demotivated.

1. Intent

To improve their approach, all sales representatives were required to attend a one-day seminar on new techniques for prospecting, presentations, and closing.

Result: The training did not yield the desired turnaround; the team continued to lose more bids than they won.

1. Purchase

One case mentioned was a lost bid for two mid-size chillers where Airwide was the incumbent supplier for over ten years.

Result: Despite offering a competitive price and understanding the customer’s needs, Airwide lost to a competitor, indicating a possible misalignment with the new decision-making processes of the client.

1. Loyalty

The discussions suggested that the decision-making process within the customer’s organization had changed, involving more individuals and considerations beyond price.

Result: Airwide’s traditional approach to sales was no longer effective, and there was a need to transition to strategic account selling to address the broader decision-making units within customer organizations.

1. In your opinion, at which stage of the sales funnel does Airwide encounter a problem? Why?

Based on the analysis of the Airwide case study, it seems that Airwide encounters problems at multiple stages of the sales funnel, but particularly in the following areas:

Evaluation: The sales team's efforts to engage with prospects and the introduction of new strategies such as raising quotas and implementing sales competitions were met with discouragement rather than motivation among the sales force. This suggests a disconnect in understanding the actual needs and motivations of the sales team, which could impede their performance and negatively impact customer interactions during the critical evaluation phase.

Intent: Despite additional training on prospecting, presentations, and closing, the sales team continued to lose bids. This indicates a gap in the sales team’s ability to effectively articulate the value proposition of Airwide’s products and services to meet the defined needs of the prospects. The lack of success despite increased efforts points to a problem in how prospects' needs are being addressed and how the company's solutions are being positioned.

Purchase: There is a clear issue at the stage of making an offer and negotiating. Airwide lost a significant bid despite being the incumbent supplier and offering a competitive price. The new decision-makers and the changed purchasing process at the client's organization were not adequately understood or influenced by Airwide’s sales strategies.

Loyalty: The sales team seems to be unaware of the change in their customers' internal decision-making processes, which now involve multiple stakeholders with various needs and pain points. The approach that had worked in the past, focusing on individual relationships and price competitiveness, was no longer sufficient to secure loyalty and close deals.

The recurring theme in these challenges is a fundamental change in the customers' decision-making processes, which Airwide has not yet adapted to.

1. List in summary form the different stakeholders of the DMU and detail the problems encountered by Airwide with this DMU?

The stakeholders of the Decision Making Unit (DMU) within Airwide's customer organizations, as described in the case study, include various individuals and internal groups that influence purchasing decisions. The problems encountered by Airwide with this DMU include:

Senior management: Airwide found that even when sales proposals were well-received, the senior management did not always approve them. This indicates a possible misalignment between what the sales team offers and what the senior management prioritizes.

New managers: In instances where long-standing relationships with purchasing managers ended due to retirements, Airwide struggled to establish rapport with new managers. The new managers did not have the same familiarity with Airwide products and brand reputation, leading to a loss of bids.

Purchasing department and assistants: The decision-making power within customer organizations shifted, with purchasing decisions involving more stakeholders. There was an observed lack of understanding on Airwide's part about the new decision-making structure and processes.

Various internal constituencies: The case describes customers as "a school of fish," with many individuals and groups within an organization moving together in the direction of purchase. Each of these individuals and groups has distinct needs, concerns, pain points, goals, and hot buttons.

The problems highlighted suggest that Airwide's traditional approach of focusing on individual relationships and competitive pricing was inadequate for the new, more complex purchasing environments.

1. Do you think Airwide needs to lower its prices to win business? Justify your answer

Based on the analysis of the case study, it does not appear that lowering prices is the fundamental solution for Airwide to win business. Several key points in the document support this conclusion:

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