Value selling strategy - Case study of ESAB Brazil

Abstract

Executive summary The purpose of this thesis is to describe the value selling strategy and its impact on the sales development of ESAB Brazil. Central questions have been focusing on the influence of the value selling strategy on sales representatives of ESAB Brazil and on ESAB Brazil’s customers as well as on identifying factors for further development of the value selling strategy. Since the nature of the study is of explanative form, a qualitative approach has been utilized. The employed theoretical work consist of literature and article review on subjects of customer value, value chain, different market strategies and industrial trends which have influenced the changing roles of sales force towards the value sales. The empirical inputs derive from interviews with sales and marketing managers as well as welding engineers of ESAB Brazil. To conclude, the value selling tool facilitates the value sales process in terms of identifying the current productivity of customer’s business operations. Based on the input placed in the tool, the tool makes it is possible to conduct value quantification of ESAB value proposition and visualize the business impacts and benefits of ESAB solution for its customers. Sales representatives can use the tool to demonstrate the business impacts of ESAB solution, increasing their selling arguments. It is also possible to share information between departments and thus increase the level of knowledge about customer’s business operations. Value selling solution will create benefits for ESAB Brazil’s customers in terms of improving customer’s business operations and increasing customer’s productivity. Value selling tool will provide ESAB Brazil’s customers the opportunity to allocate areas of business operations in need for improvement. Trust and good relationship with customer is a prerequisite for implementation of the value selling strategy. Relationship is emphasized as highly important not only for segmentation basis for new customers, but also for implementing and developing the value selling process with current customers. In order to develop strong relationships and trust with customer spatial proximity to the customer is essential. The value selling tool needs to be more adapted to the need of the sales force, not only the needs of sales and marketing managers and welding engineers. It is necessary to translate the technical information in the tool to sales terms and selling points. There is the necessity of adjusting the tool to perform calculations for separate welding processes. Furthermore it is important to present business solutions based on the future investments of the customer’s business operations. It is necessary to be well prepared when presenting the customer solution. There is a suggestion to adjust audit or an analysis process to the different company size or maybe to conduct simpler audits for some customers. ESAB Brazil should also let the customer discuss the solution first internally before presenting the quotation.