the chain and discount buyers had begun to use laser bar-code scanners and
wanted suppliers to adapt their packages to the new system of item identifica-
tion, requiring preprinted bar-codes on a non-reflective surface. Neither
Carlton nor the competition had done this yet.Customer issues
Further analysis of the survey results suggested that the three major cus-
tomer groups (British Telecom, the chain stores and discount operators)
had different service priorities. British Telecom placed greater emphasis
upon the importance of sales representation and general marketing
support whereas the chain stores were more concerned with on-time deliv-
ery and order-fill levels. Not surprisingly, the discount operations, primary
concern was price and the terms of trade, but inventory availability during
limited period in-store promotions was critical.
Underlying all of these issues was a shared concern with shelf-space
profitability. Retailers were generally much more aware of the importance
of using profit per square metre as the measure of store performance and
as a result were beginning to examine more critically the real drivers of
shelf-space profitability.
Philip Millard recognized that in order to strengthen relationships with
these major customers a new approach would be required. He also recog-
nized that to be successful a total business focus was necessary. In other
words, it would not be enough just to strengthen the existing marketing
mix but rather other key business functions such as distribution, materials
management and procurement had to be involved in creating this new
approach to customers.
Millard was also aware of the implications for organizational change
that would arise if Carlton was to become more customer service oriented.
78 Relationship Marketing