Wesco Case Study Analysis and Solution - B2B Marketing.

1. Wesco Inc.

2. Introduction
 Electrical Equipment Supplies (EES) products distributor.
 Value to suppliers : generating demand for their products and sell to numerous
OEMs and other customers..
 Manufacturers – Strong ties with 150+ suppliers.
 3 Major Types of Customers.

3. Electrical Contractors
• Primary Customer
base in the past
• Bid & Quote
Business
• Shortlisted
Distributors based on
Time of Delivery.
• Offers with lowest
overall price chosen.
• 465$million sales
Industrial Customers
• Ongoing need for
EES Products
• Maintenance,
Operations & Repairs
(MRO) activities
• Several industry
segments (Utility,
Transport etc.)
• 1$Billion sales
CIG Customers
• Commercial
customers : hotels &
motels
• Institutional
customers: hospitals
& universities
• Small, stable & low
potential customers
to WESCO
Customers

4. NA Program
Key NA Clients
• 50 Key Clients
• Turnover - $180
Million
• Average $ 3.6
Million per
customer
• Cost Index - $80
Million
Focus NA Clients
• 100 Clients
• Turnover - $ 52
Million
• Average $ 500K
per customer
• Cost Index $ 110
Million
Other NA Clients
• 150 Clients
• Turnover - $ 34
Million
• Average $ 250K
per customer
• Cost Index $ 100
Million

5. Issues in Implementing NA Program
 Account generated only 40% of target in first 5 months and margin fell by 2%
 High service demand not withstanding the sales volume
 Excessive demand of NAM’s time
 Reluctance to abandon local distributors
 Becoming competitors to electrical contractor’s traditional business thus threatening
their own business. Cannibalization.
 Reluctant to Change their existing relationship with local distributor.
 No coordination between customers HQ and plants.
 Account Managers have a large number of customers plants to monitor.

6. Should Wesco take proactive stance?
 To take proactive stance:
 Wesco needs to provide cost reduction roots by becoming Integrator and providing
an integrated solution through alliances or acquisitions in MRO products.
 Wesco must move into providing an overall solution of managing the customers
procurement to improve the quality and efficiency of the system.
 Steps that should be taken:
 “Key Accounts” continue to maintain the service levels set and implement
integrated system solutions to further satisfy the customer.
 “Focus Accounts”- Work on these accounts to make them multi product
agreements across all sites.
 “Other NA Accounts”- Try to make them exclusive by Showing them the value
additions provided and try to convert them through giving discounted trials.

7. Should Wesco take proactive stance?
 To cater to the new trends of Integrated solutions WESCO should for tier
system rather than an alliance because –
 Alliances involve investment in learning about each other’s businesses.
 Scope of each customer coming up with a different set of suppliers and distributors.
 Compete with competitors of alliance partners.
 Being proactive will enable WESCO to be in the first tier and hence earn profits by
marking up the prices provided by second tier.
 For example ,in India Blue Star Air Conditioning services provides Facility
Management Services through outsourcing.

8. Path towards proactive sales.
 Dedicated sales team to manage the major key accounts.
 Sales team should be account based so that they can see the broader picture.
 Account based sales rather than Geography based.
 Improve relationship at Local Level with the customers.

9. Thank you