The multi product strategy was based on the provision of technology, innovation, and supply of products to the customers. The multi product strategy based its activity in improving the competition and productivity worldwide. Development of technology was intended to enhance competition, which would enable the organization to earn the loyalty of its customers, and expand its businesses internationally. Multi product was the first producer of the waterproof sand paper in 1920 after the multi product was founded in 1900 (Constanza Bianchi 281). Multi product was regarded as innovative, multi-product, manufacturing company after it produced other products. In 1996, the company contributed to 53% of the total sales internationally after making sales worth 14.2 billion and a 5.8% increase from the previous year. The organization ensured that the sales representatives of one product group had strong relations with the customers, providing benefits to other product groups. The company is not only innovative but also meets the needs of different customers. To ensure better customer service, the organization introduced a customer focused marketing that dealt with sales of products, instead of relying on the company’s product groups.
Among the strategies of the company, was giving full service and satisfaction to the customers. The company considered the customers as the most important people and should be satisfied fully by the company’s services (Christensen, Jens 24). The company majored in the provision of a global growth in innovation and technology, and provision of appropriate services to all customers. The technologies that the company worked on included; electronic displays, reflective sheeting, micro-replication, and fluorochemistry. These technologies ensured new basis of competition in the business field, which was considered as the path to the goal of developing products. In their strategy, multi Product Company aimed at meeting the needs of customers by enhancing more technology in its activities. Among the goals of the company, was to create new categories of products that would give an average of six percent and above of the entire products categories. The company had an integrated solution that enabled one employee to provide access to all products and solutions.
In Chile, the company was introduced in January 1976. The company was supposed to establish manufacturing operations in the country, as part of the innovation process. The company served multiple technologies and markets in Chile. Some of the manufacturing provisions by the company include health and industrial sector. The company provided health services in Chile, built hospitals, drug stores and provision of dentist services. The company’s businesses in Chile revolved around the industrial sector, through the provision of packaging systems, mining and electrical products, graphic communication products and, reflectors (Constanza Bianchi 223). The company further provided bookstore, hardware, cleaning products, and office products. Multi Product Company was ranked sixth in Chile, based on incorporation of technology and the innovative capacity. This was recorded after a survey that was conducted among 117 directors. The multiproduct company had 270 staff members by the year 1998 (Paul Posner 19). Among the staff members, nine were technical staff members, 80 sales representatives, and the rest had different chores in maintenance, administration, and management. The management of the company improved. Improvement in management led to improvement in the business activities of the company. This is because, Chile citizens felt represented, and that they were part of the company. The multi-product company boosted the growth rate of Chile between two to four times the growth rates of the gross domestic product locally. The company made great profits from the business activities that it undertook in Chile.
In 1970, after the election of Marxist government, there were great changes, including those of economic reform that were implemented by the government. One of the major changes included nationalization of the insurance, textile, and banking industries in Chile. Boycotts against the international credit were experienced in Chile. This is because the business group had become dissatisfied, which led to worsening of the Chile currency reserve. In 1973, the military of Chile took control of the country after the inflation had reached 300%. This led to change of strategy by the Chile government, where they encouraged the market-oriented reforms, in order to privatize industries, lower import duties, and reduce the government. Chile attained economic success in1990 after the country underwent for elected democratic country. The economic success in Chile led to single digit inflation, a full pension system, high personal savings, and a growth rate of 23%. Under Bob Thompson, the multi product company in Chile was growing at a high rate of 17% per year. Comparing to the domestic products, the company’s growth rate is 2-4 times. In 1996, Bob sized up the multi product company in order to achieve the objectives of profitability (Paul Posner 16). Among the changes Bob implemented was, additional of technical support positions to the technological products that were produced by the multi product company.
Creation of new positions for the integrated solution manager was among the changes implemented by Bob in Chile. The responsibility of the integrated solution manager in Chile was to implement the integrated solutions, and coordinate the sale teams. There was the creation of the National account leaders for key accounts, who were supposed to report directly to Bob Thompson. The key account concept is applied to customers who have large potential to purchase products from the multi-product company in Chile. The customers who enjoy the key account concept have an advantage in that they receive products at different prices from the normal prices. The aim of doing this is to enhance business through the creation of long-term relationships between the customers and the company. These customers are motivated to buy products from the company. This is the reason why the price is lowered. Previously in Chile, the multi-product individual product groups were found to be functioning independently. There was a change after the implementation of the integrated solution, where the sales personnel were supposed to work as a team in order to sell the products of the company. The sales representatives were supposed to adapt new techniques of sale in order to serve the current market. After the joining of the sale representatives to the multi-product, the sale representatives were given a period of six months, with a fixed payout of 100%. 40% was fixed after a grace period, and the remaining 60% was set as a variable payout (Manzur et al 278). In order to accommodate the integrated solution, the sales manager was supposed to include the sales of other products as the target. The sales representative was given an additional compensation after reaching the set target.
In the selection of the key accounts, a set criterion is followed. For an account to be classified as a key account, it has to have purchase potential, and a strong relationship with the multi-product company. The customer should have concerns about the environment and the values of the society for his or her account to be classified as a key account. Additionally, the customer should have similar values to those of the multi-product company in Chile. Multi-products' business environment has changed in Chile. Some of the changes experienced is that the superstores in Chile have captured 90% of the markets share. The prominent American retailers have been found coming to Chile to perform their business activities in the country. Availability of superstores changed the business situation n Chile whereby, whereby customers could acquire products from rather than distributors. This was an advantage to the customers because they acquired the products at low prices. The customers in Chile were exposed to accessibility of prices of different commodities worldwide. This made the customers ask for direct services at low prices. The tradition in Chile changed, whereby all the products were advertised before they were put on the shelves for sale. The retailers were exposed to the price of products and thus demanded discount in their products, and fair prices.
Change in the quality of products was experienced in Chile. The multi product company aimed at providing quality products for the customers, and citizens of Chile. The multi product company made an effort of paying 5 million, to ensure the inclusion of the photograph of office in the catalogue. There was demand of timely delivery of products by retailers in order to improve better communication with the suppliers. The use of large tracks for delivery of products was changed. The company in Chile adopted the small tracks because they were efficient and easy to load and offload. Multi Product Company wanted to reduce its retailed representatives to one (Constanza Bianchi 226). Through this, it meant that one person could have access to a product, which might further lead to multiple product division in the business. The product responsibility of the company was reorganized. The reorganization meant that the marketing manager for the consumer goods had to coordinate with home and office division. The customers had an advantage, whereby they secured good relationships with other customers, providing them an opportunity to sell other products.
The Multi-product company of Chile experienced challenges during the process of implementing change. One of the challenges was the failure to establish a mission statement by the senior managers of Chile, Peru, and Bolivia. The quality of discussion between the three parties was low, and they failed to reach a conclusion. The three managers had no faith between them, were isolated, and were unaware of the groups’ process for teamwork (Paul Posner 12). The managers were defensive and had unresolved conflicts between themselves. The changes in Chile were happening aggressively and quickly giving no chance to the employees to understand the reasons for the changes. Various movements in the company had conflicts over the implementation of set changes, which posed as a challenge to the company. Bob Thomson himself asserted that he had introduced enough changes to the company in Chile. Bob explained that it was not necessary to implement other changes because the business was doing well, and making profits. The survey that was conducted out gave evidence that people in Chile had different opinions on the empowerment, pay, work condition, and safety (Christensen, Jens 32). Some of the business people thought that they were doing well, and thus there was no need for change. This posed as a barrier to the implementation of change.
Works cited
Manzur E., et al.; "Comparative advertising effectiveness in Latin America: evidence from Chile", International Marketing Review, Vol. 29 (2012) Iss: 3, pp.277 – 298.
Constanza Bianchi, "Retail internationalisation from emerging markets: case study evidence from Chile", International Marketing Review, Vol. 26 (2000) Iss: 2, pp.221 – 243.
Christensen, Jens. Strategy and structure: and the management of the technology base in multi-product companies.. København: HHK, 1996. Print.
Mirko Cardinale. Optimal portfolio allocations and funded pension systems: the case of chile, in Harvey Arbelaez and Reid William Click (ed.) Latin American Financial Markets: Developments in Financial Innovations (International Finance Review, Volume 5), 2005.
Paul W. Posner. Development and collective action in Chile's neoliberal democracy, in Diane E. Davis (ed.) 18 (Political Power and Social Theory, Volume 18), 2006
