What should we do?

Simmons & Smith

S = Have X approach to selling to markets now

C = Expect much higher growth, face other problems, afraid X approach will not continue to work

Q = How change?

S&S presently sells three products to three separate markets: membranes, analytical testing devices, and general filtration. It uses a small molecular biology-oriented sales force with some dealers (23% of sales). It has done remarkably well in marketing its NC membranes into the molecular biology market, partly because of the high quality of its sales force, but has done less well in non-molecular biology product/market segments.

The molecular-biology market for NC membranes is expected to double in 3 years, while the other markets are expected to grow as rapidly. S&S is afraid that its small sales force won't be able to handle the membrane growth, let alone grab share in other markets. You do not like the idea of expanding your use of dealers because of the high (30%) commission you must pay them, and you are also concerned that dealers are beginning to compete with you in the molecular biology market by offering a synthetic NC product.

(What should S&S do to protect its molecular-biology/membrane market, and grow the others in the most profitable way?)

We believe S&S should adopt a separate distribution approach for each market.