IBM Selling Plan :: GCSE Business Marketing Coursework

IBM Selling Plan Executive Summary We have selected IBM as a prospective buyer for Nidec’s spindle motors. For the past several months, Nidec has been the sole supplier of cooling fans for the production of IBM’s servers. Using this strong relationship as a base, we will present three main reasons for IBM to use Nidec as a supplier for spindle motors as well. First, Nidec is able to charge a lower price than competitors. This feature is possible because Nidec’s 70% spindle motor market share allows the company to achieve economies of scale. Second, Nidec is committed to pursuing a double-win philosophy with its customers. IBM can count on Nidec to provide the best solution to its many design and production problems. Nidec will work with IBM and IBM’s suppliers to facilitate the design and production of new products. Finally, Nidec places primary focus on the quality of its products from design to delivery. With one of the lowest DPPM’s in the industry, Nidec has demonstrated its ability and dedication to maintaining a high level of consistency and reliability. We are scheduled to give a presentation to a commodity manager and commodity engineer from IBM’s hard disk drive department on February 22, 2000. This presentation will be persuasive in nature. It has one primary objective: closing the sale! By â€Å"closing the sale,† we mean securing a two-year agreement with IBM to purchase spindle motors exclusively from Nidec. If this objective cannot be met, we are confident that we will at least be able to secure a visit to Nidec’s site in San Jose. A plant visit would surely convince IBM that Nidec offers the best solution. Customer Background Customer Profile IBM is the world’s leading information technology company. From its beginning in 1890, the company has had a history of providing innovative solutions to complex problems. One of the more recent of IBM’s innovations is its server technology. IBM is widely known for producing high quality and powerful servers for a variety of businesses, including retail, manufacturing, finance, distribution, health, legal, transportation, insurance and education (www.ibm.com/servers/). IBM produces dozens of different types of servers comprising five separate categories: AS/400, Netfinity, NUMA-Q, RS/6000, and S/390. These servers are sold in more than 120 countries and can run on over 49 different languages (www.ibm.com/servers). They are adaptable to multiple platforms, and are compatible with thousands of software programs. During the past several years, IBM has spent billions of dollars incorporating the most advanced technological capabilities into its servers.