Cremer S.A is a Brazilian hospital and medical supplier.
Their experience has become a case study published by professors Michael D. Hutt
and Thomas W. Speh, from Arizona State University and the University of Miami,
respectively, in a book called "Business Marketing Management: A Strategic View
of Industrial and Organizational Markets." Cremer faced a financial crisis that
made it redefine its business model and leave behind its product marketing
scheme, which was intermediary-based, to deal directly with end consumers. As a
result of this new strategy, in only one year, Cremer's active clients rose from
6,500 to 41,000.
The company could no longer cope with heavy debt, thinning
profit margins and lack of credit. Applied Consulting, at the request of
Cremer's creditors, carried out a feasibility study of the company and later
remodeled its management strategy.
The feasibility study showed positive results: Cremer's
brand had a strong presence in the market. The company had quality products and
excellent human resources. However, unless it changed its business model, it ran
the risk of being pushed out of the market. The subsequent management changes
involved both the redefinition of the marketing scheme -leaving commercial
representatives behind in order to focus on end consumers-, and an internal
reorganization based on a horizontal model. Based on this organizational model,
the decisions to implement this new business plan were made by a group of
directors acting as a committee.
The new business scheme also implied the incorporation of
distribution and logistics centers, a change in the pricing policy, and the
implementation of a call center in order to offer direct attention, quick
delivery ?less than 24 hours? and a single price, straight from the factory.
The new Cremer started gathering a crowd of operators at a
call center, who were supposed to receive a large volume of orders. The company
did away with the previous system which consisted of a group of salespeople that
only brought a few, large orders into the company. The strategy implied flexible
production -daily programming, minimal stocks, and high turnover- and the sale
of various out-of-the-box products, which also embraced small orders.