Marketing Strategy in B2B

16462 Words66 Pages
Chapter 6 Marketing Strategy W. W. GRAINGER For over 70 years purchasers at Fortune 500 companies and even the tiniest manufacturing firms have relied on W. W. Grainger to provide power tools, motors, hoses, belts, and more. They looked to Grainger’s red-colored cata- log as a purchasing “bible” because it profiled over 70,000 items. With more than 4,000 pages, it tipped the scales at over seven pounds and was a key factor in Grainger’s multibillion-dollar sales levels and status as a national leader in industrial distribution.• In 1995 Grainger executives recognized that the Internet offered stagger- ing opportunities to increase sales and deepen customer relationships. They witnessed a B2B evolution of electronic storefronts and the development of e-procurement systems, and they saw the future contained e-market ex- changes and new means of collaboration in buyer and seller supply chains. Soon Grainger.com was launched. It had no page constraints or copy limita- tions, no evident SKU limitations, afforded one-to-one personalization, and tight integration, including integration with its 1994 supply chain initiatives. Rather than simply posting the “bible” in electronic form, Grainger built a powerful e-commerce site including search software that let customers find what they wanted in seconds. The site linked to Grainger’s suppliers’ elec- tronic product listings and provided real-time pricing data, recognizing, too, the contract prices negotiated by large customers and Grainger. It connected to Grainger’s inventory system to show product availability and did not re- place the catalog or Grainger’s network of distribution centers.• Other firms hoped the Internet would go away, but Grainger has reaped substantial rewards from its e-commerce strategy. Online orders are twice the size of

More about Marketing Strategy in B2B

Open Document