Northern Lights Case

573 Words3 Pages
Written Analysis and Communication Northern Lights Limited Situation Analysis James Slater, Vice President Sales and Marketing of Northern Lights Limited is in a dilemma. An email from Northern Lights Limited’s one of the biggest customers Amtron Private Limited, strongly suggested that NLL participate in sponsoring a portion of the company’s annual sales meeting. The problem was that, that according to NLL’s marketing practices, sponsoring a customer’s events was against its marketing practices. There are three options for sponsoring the event 1. Grand Reception for $50,000 2. Golf Tournament for $20,000 3. Grand Banquet for $90,000 NLL is a steel company which buys master coils from steel producers to further process it according to the customers’ needs. The company prided itself for being consistent in quality and timely delivery which guarantees customer satisfaction and long term relationship. NLL has limited its marketing strategy to advertising and promotion. It does not go beyond its current practices to impress a prospective client or to strengthen its relationship with the existing customers. Amtron is one of the leading producer of heavy industry equipment and has been the customer of NLL for 60 years now. The relationship of these two companies had always been positive and professional and the negotiations had also been fair and content for both the parties. Even though Amtron is regularly approached by various other suppliers, the trust with which Amtron does business with NLL has prevented other suppliers to replace NLL. NLL’S annual sales is close to $1 billion. NLL has around 500 customers out of which top 25 customers account to 67% of its sales. In 2000 Amtron had dropped to 20th place, 24th in 2008 and last year ranked 30th. Orders have declined from $45 million in 2000 to $20 million last year. It proves that the demand in

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