B2B Marketing: Strategy to Win Sutton Tools Business - University

This report details a B2B marketing strategy aimed at securing Sutton Tools' business as an 'out' supplier of entering goods. It profiles Sutton Tools, outlining its history, goals, and strategies, and explores the scope for an 'out' supplier. The report applies relevant B2B theory, including pricing strategy and agency theory, to develop key marketing strategic elements designed to win the target business. It emphasizes the importance of market analysis, competitive pricing, and building strong relationships between the supplier and Sutton Tools, ensuring mutual benefit and risk mitigation. The strategy focuses on promoting existing products, understanding Sutton Tools' needs, and aligning the supplier's capabilities with the target account's requirements for long-term success. Desklib provides access to similar solved assignments and resources for students.

Business to Business Marketing
Student Name:
University Name:
Date: 06 March 2019
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Table of Contents
Introduction................................................................................................................................3
Profile of target account and scope of ‘out’ supplier.................................................................3
Application of theory in creating key marketing strategic elements that will help deliver you
this targeted business..................................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7
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Introduction
Sutton Tools is the manufacturer and distributor of precision accessories and cutting
tools, and the company is located in Australia. The company also hold Australian Made
(AMAG) logo, which has created customer awareness of the company (About Sutton Tools,
2019). The company was founded in 1917 by William Henry Sutton in Melbourne. Currently,
it has a workforce of 400 employees around three of its sites located in Victoria, and one site
is located in New Zealand. The philosophy of the company focuses over research and
development and to abreast with technological advancement to manufacture the tools, which
will support in achieving high speed and long life (About Sutton Tools, 2019).
The case outline Sutton tools business and mention that the company is trying to
modify its re-buy of entering goods. Being the manufacturer of re-buy of entering goods, and
holding target account, our task is to profile the target account and discuss its scope
concerning the business. The report will also explore the essential aspects of theory, which
permit to create the crucial marketing strategies components, which will support in delivering
the target business. The report will emphasise on developing the strategy to win the business,
with the application of B2B theory.
Profile of target account and scope of ‘out’ supplier
Target account profile
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(Source: About Sutton Tools, 2019)
Description of the Organization- Sutton Tools is into manufacturing and distribution of
precision cutting tools. The company is located in Australia and hold Australian Made
(AMAG logo). It has a workforce of 400 employees at its three sites, two in Victoria and one
in New Zealand (About Sutton Tools, 2019).
Account History- the Company was founded in 1917 by William Henry Sutton, by opening
300 square foot factory in Westgarth, Melbourne.
Competitors- Somta Tools Ltd, KYOCERA Precision Tools Inc, Regal Cutting Tools Inc,
and Nachi America Inc.
Goals- Sutton tools aim to benchmark itself as the best tool manufacturing company in the
world, and not only benchmarking but also surpass it (About Sutton Tools, 2019).
Strategies/Action Plan- Sutton tools facilitate the up-sell strategy for enhancing shopper
spending as well as retailer profit (About Sutton Tools, 2019). The company also plan to
modernise its product presentation and also assist the ‘self-service’ strategy in the hardware
industry, DIY consumers and trade.
Scope
Being an ‘out’ supplier of re-buy of entering goods, the main focus is placed over the
promotion of existing products, in order to sell the entire product line by the help of target
strategy, which emphasises over the end-user customers (Klein and Philpotts, 2013). It
provides a high level of opportunities in line with the product objective of the company.
Being an ‘out’ supplier, we purchase a large number of units each year or try to be in a
market for a large purchase of re-purchased goods (Moraitakis, N. (2017). In order to meet
the enormous demand for re-buy goods, the company decided to enhance their storage
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capability through updating fleet, as this will provide them with an opportunity to meet
market demands in coming time. The company will have a dramatic impact over the income
through sales, and dealership in the coming time (Moraitakis, 2017).
Being an “Out” supplier, we can provide material and components to Sutton tools,
like the raw material such as cemented carbide, saw blades, cubic boron nitride, tool bits, and
polycrystalline diamond (Klein and Philpotts, 2013). These are the important ingredients
required in the manufacturing of precision cutting tools (Moraitakis, 2017). We also offer
installations and equipment to the company.
Application of theory in creating key marketing strategic elements that will help deliver
you this targeted business
Before marketing the entering goods to Sutton tools, it is important to analyse the
market and conduct a feasibility study, as it will help in penetrating the available market. A
supplier needs to collect all the information about Sutton tools, like its history, philosophy,
strategies, action plan, and market expansion strategy before working with them (Hall, 2017).
It is also important to analyse, how the company deal with its suppliers and handle the
competition ongoing in the market (Hall, 2017).
The supplier can apply the pricing strategy, which will be based on obtaining the raw
material business supply line, which means that the supplier doesn’t intend to charge more or
less than the competitors, and also a place to provide discounts and reward the loyal
customers (Fill and McKee, 2012). The supplier ensures that the price of raw material is the
same as what is set in the open market. The equipment and material which will be supplied to
Sutton tools will have nearly the same cost everywhere in the market, and any variation in the
cost will be minimal, and Sutton tools can overlook that (Fill and McKee, 2012).
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(Source: Ferrell and Hartline, 2013)
In order to expand the supply to Sutton tools and in the market, the supplier should
ensure the competence and capacity of their staff, their investment strategy as well as the
structure of the business (Ferrell and Hartline, 2013). If all these factors are lacking, then it’s
difficult for business to expand in the market (Fill and McKee, 2012).
In B2B business, agency theory can be applied, as it will support both Sutton tools
and suppliers as they both will be working together (Delbufalo, 2018). The agency theory
will assist in analysing the issues and opportunities. It will also examine the risk aversion that
can occur during the exchange of business (Papadakis and Barwise, 2012).
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(Source: Delbufalo, 2018)
Agency theory is also helpful in designing the contract and relationship between
Sutton tools and supplier so that that pair results can be obtained between two parties
(Papadakis and Barwise, 2012).
Conclusion
It can be concluded that ‘Out’ supplier can apply the pricing strategy while promoting
its services to Sutton Tools. This strategy will support the supplier in getting the deal and will
even help in business expansion. The supplier has a huge scope for supplying entering goods
to Sutton Tools, due to the enormous business opportunities hold by Sutton Tools.
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References
About Sutton Tools. (2019). [Online] Available at:
http://www.suttontools.com/about/australian-made/ [Accessed 06 March 2019]
Delbufalo, E. (2018). Agency Theory and Sustainability in the Global Supply Chain. Springer
Ferrell, O. C. and Hartline, M. (2013). Marketing Strategy, Text and Cases. Cengage
Learning
Fill, C. and McKee, S. (2012). Business Marketing Face to Face: The Theory and Practice of
B2B. Goodfellow Publishers
Hall, S. (2017). Innovative B2B Marketing: New Models, Processes and Theory. Kogan Page
Publishers
Klein, C. and Philpotts, A. R. (2013). Earth Materials: Introduction to Mineralogy and
Petrology. Cambridge University Press
Moraitakis, N. (2017). Supply Chain-Based Category Strategies for Global Supply Networks:
An Empirical Analysis of the Supply Market for Polyamide Engineering Thermoplastics in
the Automotive Industry. BoD – Books on Demand
Papadakis, V. and Barwise, P. (2012). Strategic Decisions. Springer Science & Business
Media
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