Question

draft a sales pitch of MPO FENÉTRES company

Answer 1

Founded in 1970 in Alençon (Orne), the company MPO Fenêtres (MenuiseriePlastique de l’Ouest) was one of the first French companies in the PVC/carpentrysector to offer a customized service. However, at that time, in France, very little wasknown about PVC, carpentry and double-glazing technology: these markets werestill in their infancy. It took about ten years, and two oil crises (in 1974 and espe-cially in 1979) for the PVC window market to really take off. The commercial policyof EDF (the French public energy provider) at that time favoured the developmentof this product, encouraging investors to push for “all electric” installations, whichwould, according to the manufacturer provider, require better insulation of publicbuildings to reduce heat loss

A survey conducted by the UFME (Union des Fabricants de MenuiseriesExtérieures, July 2011) among stakeholders (designers, window manufacturers,outlets and installers) reveals the following.In 2010, the French window market suffered a decline of 4% compared to 2009with a value of about €9 billion (€5 billion relating to installation). The market wasat its historical highest in the year 2005-2006, with 12.3 million windows sold, fol-lowing a steady increase in the global market of about 4% per year between 2000and 2006. The cumulative selling volume in 2010 reveals that over 11 billion windows (excluding the opening of glazed facades, shutters, and doors) have been sold. Just 5 percent of these have been imported: this is because the carpentry sector has not been impacted by the major industrial relocations that have taken place in recent years. Local production is animportant factor: most consumers prefer to buy from local companies and artisans.Almost all components of windows sold in France are produced in the EuropeanCommunity. Indeed, as consumer preferences vary greatly from one country toanother, it is very difficult to market a standard product globally, which partlyexplains the customisation this phenomenon. In addition, over 90% of windows arecustom made, which further limits the importation of materials.

The market report by Xerfi identifiesother actors on the market:

Specialists in manufacture,

1. marketing their products primarily business tobusiness (B2B) but invest small amounts in niche markets, due to higherprofitability expectations.

Independent joinery networks

2. (including MPO Fenêtres) usually suffer from alack of recognition and limited geographical coverage.The3.

DIY and unskilled distribution networks.

These actors (such as LeroyMerlin), which have become essential market windows, now offer a comprehensiverange of joinery (doors, windows, etc.) and benefit from their vast distributionnetworks to offer promotions.Finally, a new type of actor has recently emerged on the market. Online salespecialists. These target individual customerswith specific building or DIY knowledge.  In order to support sales, MPO Fenêtres has developed products within the frame-work of sustainable development, from design to installation. Additional certifica-tion for the installation of windows obtained in 2011 is further evidence of thecompany’s desire to provide a quality service. These certificates and service evalu-ations conducted by independent arbiters are highlighted by the company’s salesstaff in discussions with existing and potential customers. The sales force is there-fore a very important element of the new marketing strategy and the launch of thetriple-glazed windows. The company’s salespeople activelyseek potential clients, especially at trade fairs and exhibitions. These events are ofparamount importance: they afford opportunities to expand the client base and winnew contracts. Up to 25% of the annual turnover of an agency can be attributed tocontacts made during these events.