Reference no: EM133247797

During the first part of this course we examine the relationships (B2B vs. B2C), functional relationships, costs and buying group processes that influence the B2B marketing environment. Please complete the following task

Read the following case, and using the knowledge accumulated to date, answer the following questions.

The Middleby Corporation

The Middleby Corporation manufactures cooking equipment for restaurants and institutional kitchens. Included in its product line are conveyor ovens, ranges, convection ovens, griddles, fryers, and food-warming equipment. Recognized by Business Week as one of theTop 100 Hot Growth Companies and by Forbes as one of the Best Small Companies, the firm enjoys particular strength among fast-foodcompanies.

1. Among its customers are Subway, McDonalds, Papa John's, and Yum! Brands, the parent company of KFC, Pizza Hut, Taco Bell, and others. Commenting on the firm's rapid growth, one industry expert observed: "As these franchises go to China and Indonesia, Middleby ovens go there too."

2. Middleby has developed a loyal customer base. For example, Middleby ovens are the only ovens used in Papa John's restaurants around the world. For its excellence in customer service, quality, value, and relationship management, the firm was named the Yum! Brands Supplier of the Year and received the "Slice of Appreciation" award from Papa John's International.

3. Middleby leads the industry in energy-efficient food-preparation equipment. The company offers a broad array of Energy Star-approved products that cook food efficiently without sacrificing quality. For example, Middleby's WOW! Oven represents the most energy-efficient, fastest-cooking conveyor oven on the market- 35 percent faster, yet 30 percent more efficient than the appliances offered by competitors.

To spur additional growth, Middleby is exploring the feasibility of adding casual dining chains to its targeted base.

4. Casual dining comprises a market segment between fast-food establishments and fine dining restaurants. By offering a complete suite of products to revamp their kitchens, Middleby strategists believe casual dining operators could cut labor and energy costs while increasing productivity. Such changes would represent a multimillion-dollar initiative in each restaurant. Middleby is currently conducting a test run with three casual dining chains to demonstrate the potential return on investment that its products could deliver. Middleby refuses to divulge the names of the dining chains involved in the test but reports that the results look very promising.

Questions:

1. Describe how the value proposition that Middleby offers to a casual dining chain, such as Swiss Chalet, might differ from one that is offered to a fast-food customer, such as Domino's Pizza.

2. In planning marketing strategy, what adjustments might be needed in serving potential casual dining versus fast-food organizations?

3. How could Middleby leverage the Category of Industrial Goods to market their line of products to new business customers?

4. Which of the 3 types of 'buying situation' would a casual dining restaurant's Chief Procurement Office find themselves in if they entertained bringing in a new lineup of Middleby equipment?