Highland Galvanizers: Developing a Key Account Management Strategy

This report provides an overview of Highland Galvanizers, a company providing coating services to engineering and manufacturing companies in Scotland. It assesses the impact of micro and macro environmental factors, including economic, social, technological, legal, and environmental influences on the business. The report explores market segmentation strategies, suggesting expansion into galvanized steel wire and anti-corrosion paint markets in England. It discusses the importance of key account management strategies for building relationships with major customers and providing value-added services. The analysis includes recommendations for distribution channels and strategies to compete with technically advanced competitors, ultimately aiming to enhance Highland Galvanizers' market position and revenue.

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Key Account Management

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Table of Contents
Overview....................................................................................................................................2
Impact of the micro and macro environment.............................................................................2
Economical.............................................................................................................................4
Social......................................................................................................................................4
Technological.........................................................................................................................5
Legal.......................................................................................................................................5
Environmental factors............................................................................................................5
Market Segmentation.................................................................................................................6
Key account management Strategy............................................................................................8
Marketing plan...........................................................................................................................9
Steps of marketing plan........................................................................................................10
References................................................................................................................................12

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Overview
Highland Galvanizers and the Highland colour coaters are Highland Galvanizers that
Highland Galvanizers is engaged in providing the services of coatings to engineering and
manufacturing companies across Scotland (DPA, 2006). The core feature is to promote the
protective and the decorative coatings on aluminium and steel for many sectors. Highland
Galvanizers also offers the galvanising and organic coatings which are covered by the
powdered material.
UK Paints & Coatings market recently witnessed total sales amounting to USD3.80 billion
during the year 2017, which is expected to escalate at a significant rate over the coming
years (Highland, 2018). The spurring demand from the business of the construction,
automotive, marine and aerospace and other advanced manufacturing sectors is primarily
driving the UK Paints and Coatings market.
Highland Galvanizers was established in the year 1978 and the in the year 2002 it also
captured the (Cumberland Highland, 2018). The team includes 120 employees and the
average coating per week is in the figures of the 300-400 tonnes. There is also a special
coating namely “Colourgalv” which is a combination of hot dip galvanising and coloured
coatings and distributing a roundabout 250 colours on objects.
Impact of the micro and macro environment
The concept of the microenvironment is a crucial component, which provides the modelling
exposure and the estimation of assessment of the risk. Microenvironment has been typically
defined by a number of factors which are as competitors, customers, suppliers, and marketing
intermediaries. The microenvironment affects Highland Galvanizers in different ways. It can
depend upon in terms of size, capability, capacity and the strategies are different. For

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example, the large companies are getting concessions however the same is not available to
the smaller organisations. Another example could be of the competitors. Generally, the
competitors are not worried about the small companies as their targets are the large firms and
organisations (Mcculloach, 2017).
Taking about the competitors the competition in Scotland is highly fluctuating in terms of the
companies involved in the process of the galvanising. Though the galvanisation can be
completed through different processes, however, hot galvanisation and the electro
galvanisation is the main activity of the highland galvanisers. Along with the facility,
Highland Galvanizers also provides the durability, protection, petrochemical and the
construction products (Transparency Market Research, 2017). Competitive rivalry in
Scotland, as well as the Cumberland, is on edge and the local suppliers are fighting for
building their demand map. The only factor that separates them is the price and the Highland
Galvanizers can be affected by the costs set by the competitors.
The Highland galvanizer is running consistently among the other competitors who are
technically advanced such as Premier Galvanizing Company. The customers are base for any
company and the key to success is through the satisfaction of the customers. Both the Hull
and the Corby galvanising facilities have been designed in order to keep the preferences of
the customers on the top priority (Premier Galvanizing, 2018). The highland Galvanisers
follows the policy of visiting the customers to build a strong relationship among the
customers.
The macro environment, on the other hand, is a diverse umbrella which is concerned more
with the external environment and the factors which are inclusive of the macro environment
are the economic, social, legal technical and environmental.

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Economical
The economic factors include the tariffs, the rate structure, the market forces and other similar
elements which do affect the business and can hamper the performance. The Scottish economy is
facing a negative response with a warning from all business tycoons in the country. It mainly
because of the government promise of economic development in the rest of the country,
instead the government is imposing a high tax on the businessman which are hurting the
coating business houses. Such decisions of imposing huge taxes lead to a negative growth of -
17.8 points. There is has been a substantial fall of 13.5% in the revenue of the coating
business in the last quarter (Business Wire, 2017). Such an impact also affected Highland
Galvanizers Ltd, where its revenue falls at a substantial level where its business majorly
affected by the Brexit due to the major changes in the policies of Britain. The painting
industries are driven by certain policies and regulations formed by the Government of
Scotland which is also one of the reasons that create an impact on the internal environment of
the Highland galvanisers.
Social
The social factors include the age, culture, demographic features which also impact the company in
many ways. Scotland is a socially rich country. Companies like Highland Galvanizers are
enjoying the social environment of the country as the people are having high standards of
living (Scott, 2018). The government of Scotland is also providing services such as National
Health Services to its people which help in reducing the cost of insurance to Highland
Galvanizers. It is also to be noticed that Scotland is a very densely populated area which
leads to the migration of the people very easily. Hence Highland Galvanizers can deliver its
product in any part of the state or country very easily.

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Technological
Technological factors are the variables that are utilised to evaluate with respect to the
technological capabilities. The business operations can be affected more with the use of
utmost technology. Technology determines the growth and revenue of any business (Baker,
2014). As the Highland Galvanizers Ltd has the updated technology with them as they have
expertise in repair procedures, design for galvanizing, surface finish etc. Such operations are
done with the latest technology which helps them in reducing the cost of production in their
every activity. Such operations are performed by the duly trained officials which helps them
in maintaining the production cost, as a result, Highland Galvanizers has the capacity to
achieve its targets easily. But the technological factors of Highland Galvanizers is highly
depended upon the political factors of the country, the government of the country should be
helping Highland Galvanizers in availing latest technology in form of subsidies or by
reducing the rate of taxes so that Highland Galvanizers can import any latest instrument from
any part of the world.
Legal
The factors that can affect Highland Galvanizers are majorly the competitors and the
technological upshift. Rest of the factors also affect Highland Galvanizers but at the lower
level as compared to these factors (Policy, 2016).
Environmental factors
The environmental factors also affect the performance of the Highland Galvanisers and the
company shall also have a proper outlook on the strengths and the weakness of the
opportunities that are available to enhance the company. The colour coating and the
galvanising does not work properly in the wet conditions and therefore the company has to
change according to the environment.

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Market segments Highland Galvanizers should consider for expansion and why
Market segmentation can be referred to the process of identifying the different group of users
within the market and with the use of the separate products and the marketing, programmes
can possibly be targeted. The idea of dividing the market into various segments with the
different products is termed as the market segmentation. The current market structure of the
Highland Galvanisers is an oligopoly.
Market Segmentation
Market segmentation is the process of dividing the business market or the broad customers,
which normally is focused on the existing and the potential customers and divided on the
basis of the characteristics such as shared needs, similar interests, same kind of lifestyles and
demographic interests(Church & Rotolo, 2013).
The market segments can be segregated into three types.
 Product type
 Industry Segmentation
 Channel segmentation
Typically the characteristics are high restrictions to the entry because of the huge capital
outlay (Wedel & Kamakura, 2012). The hot galvanizing technique and the colourful are the
major techniques and the England market is suitable for Highland Galvanizers. Highland
Galvanizers can expand itself in the area of the galvanized steel wire. Apart from the
aluminium coating, Highland Galvanizers can invest in anti-corrosion galvanising paint
which is used for all types of the metals and provides protection against the corrosion
(Church & Rotolo, 2013). The hot dip galvanising does the same job but in England since the

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price of the paint is low inclusive of vat as compared to the prices in Scotland. It ranges from
pound 37.50 to pound 398.
The next market segment Highland Galvanizers can enter into the new markets where the
alternative against the hot-dip galvanising is available which is ZAM coating or the
GALFAN – ALUZINC. They are cheap in term of cost, easily available and they provide
more protection and the colour adhesion which gives an edge to the coating (Wedge, 2017).
Moreover, the demand for these products is higher than the hot dip in England as it is
manufactured in the country itself so transportation becomes easy and handy.
The other segments that the Highland Galvanizers can think to cater are shot blasting and
powder coating. Galvanising is particularly weak in the wet conditions and mostly in the case
of the accelerated weathering. The zinc relies on the carbonates and this helps in lowering
down the corrosion (Doyle & Bridgewater, 2012). In wet conditions the hydroxides of the
zinc are soluble therefore, companies prefer long-lasting substitute and hence the Highland
Galvanisers can undoubtedly invest in the England and can create a market position if they
tend to perform better.
Talking about the industry segmentation the highland can choose to cater to a lot of
companies such as the power, construction business, and bridge makers. The construction
business in England can be observed in the chart below (European Coatings. (2018).
Development in the construction industry is anticipated to offer opportunities to the hot-dip
galvanization market, as hot-dip galvanized products are used as bars, rods, and sheets in
infrastructure development. The impact of the Brexit on the construction business is second
highest after the electricity. The sectors have a very high proportion of the foreign investors
serving the domestic market (Dunning, 2013). Highland Galvanizers can increase the revenue
via investment in these areas as the rise in demand for hot-dip galvanization considering its

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low initial cost; easy availability; and high durability, sustainability, and longevity is the
primary factor driving the hot-dip galvanization market.
The distribution channels are also one of the categories in terms of market segmentation.
Generally, the distribution of the products through the different medium of channels will
cater to the needs of the variety of the customers. The mediums can be direct, indirect,
personal selling, through the distributor. The highland galvanisers run weekly along the
Scottish borders. For the areas belonging to a far zone the facility of the transport to pick up
and return facility is available. The highland galvanizers can also act as an agent between the
suppliers and direct users (West, Ford & Ibrahim, 2015). The completed materials can be
collected and used the self-distribution channels Highland Galvanizers can deliver the
services in England. This will save the cost of producing the dip and moreover the change in
segmentation will create competition.
Key account management Strategy
The key account management strategy is a strategy which is acquired or infused in the firm
by the companies majorly to identify the key “accounts” that are the major customers and
form the substantial part of Highland Galvanizers’ sales and business. The key account
management provides the values added services to the key account portfolio Staples, John,
(2016). The main aim is to build the relations with the crucial customers. The key accounts
are basically those
 Who have the stable and the regular orders?
 Chances of becoming the bad debts are low
 And who possess the potential of becoming the lifetime customers
 The customers who have their own brand value and the loyalty factor
 The ones who are ready to pay a little extra for the higher level of the service

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It is basically a strategic account management where companies plan to manage and grow its
most important customers. It is basically a systematic approach of the companies towards it
clients or customers to maximise mutually beneficial goals. In order for a better management
of the strategy, the company needs to identify its key accounts that have a better financial
responsibility in the company. The key accounts are those 20 to 30 % of the accounts which
provides the 70 to 80% of the business to the company. Highland Galvanizers Ltd should not
aim at selling its products rather than it focuses on selling solutions by listening to the
problems of the customers. The company should partner with customers by having back to
back meetings regarding their problems and helping them in various parts of their work. The
company should not only focus upon the increase in the revenue but it should also focus upon
the increasing partnership among them so that they can also have the possibility of working
together in future also (CEB, 2017). It is also important to maintain the mutual growth and
accountability between them, as a result, the client would be starting to have trust and belief
in the company. A detailed explanation regarding the benefits of their products and problems
needs to be addressed which helps them in initiating any investment easily. A personal
recommendation to the customers are provided for their benefit so that the customer feels that
the company is very customer centric as a result, the company may attract many other clients
who helps in the better growth of the company.
Marketing plan
The relationship marketing plan is the plan which is devised to foster the customer loyalty by
having the regular interaction with the customers and having a long-term engagement with
them. The main purpose of the formulation of the relationship marketing plan is to be in the
shoes of the customers and cater to their needs. The plan is determined in the form of a table.

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Steps of marketing plan
There are several steps of the marketing plan such as.
 Offer Quality Service:The first step of the plan is to provide the services to the
customers who are not only quantitative oriented but it shall also be qualitative
oriented. The quality determines the stability of the customer (Power Objects, 2018).
The coating services and the galvanizing service shall be anti-corrosion free which
causes less loss and also falls under the policy of the ethical environment.
 Content Marketing: Content marketing is all about the brand marketing. It is a
strategic approach which is focused on creation and distribution of the value to retain
the existing audience and to build the new audience.
 Tailor the strategy for the social media: The social media strategy shall be devised in
such a way which can be accessed easily by the customers. It is a powerful marketing
step in which the Highland Galvanisers can create a large base of the customers. The
brand can be made aware and can also be expanded to form the umbrella of the
potential customers (McDonald & Wilson, 2016). It is a win-win situation for both the
clients and the company. The digital media is reaching even in the remote areas. The
social media platform is a communication platform and therefore the highland
Galvanizers will get the benefits.
 Develop a loyalty program: To develop a loyalty program is the next step to be able to
hold the customers and clients and maintain a higher retention ratio.
 Conduct surveys: The surveys are the reality check for Highland Galvanizers to get a
feedback from the customers for the services delivered by Highland Galvanizers. It is
basically a blueprint of what has been delivered and how the same has been accounted
for (Tudor & Negricea, 2012). The surveys are the easy medium to reach to the

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customers and a feedback will determine the variances and the areas in which
Highland Galvanizers lacks.
 Online chat support system: The online chat support system is the best medium and
the most important step in determining the relationship marketing plan. The online
chat support system allows the clients and the customers to lodge their complaints and
grievance without much hassle.
 Emails: To communicate is an important initiative and therefore with the aid of the
emails, Highland Galvanizers can inform the clients and customers about the new
schemes and the new services that are available to be catered for.