Question

ABC an Indian company specialised in the production of local organic and Non-GMO snacks. Mr.
Ameet-the marketing director has floated the idea in the recent board meeting to start exporting the
same snacks to Canada. Mr. Parkat- a Chairman has some reservations about it and asked you to assist
in negotiation of this kind of contract with some of the potential customers in Canada. Advise Mr. Parkat
about the details of the areas of negotiations to be considered to make a contract with potential
customers in Canada. Also suggest some strategies for negotiation.

Answer 1

Answer 1) So as ABC company is planning to export their snacks in Canada and want proper information on negotiation, so I would like to suggest that the first step of proper negotiation is, Marketing Research: If a company wants to do a negotiation with customers in any country then it’s very important to do a marketing research beforehand to understand the nature of customer in that specific country, do they prefer value or volume, do they purchase in bulk or they give more frequent small orders. All these things need to be taken care of if negotiations have to be done. Now lets about areas of negotiation:

1) Bulk ordering: If customers ask for negotiation, then negotiation can be done on the basis of bulk ordering if customer/channel member are asking for lower price than the best way is to tackle them with asking for more orders. Give them the offer if you will purchase 20 thousand units than 5% discount can be given etc.

2) Quality and Benefits: The most economical way of negotiation is quality where the company can make their customer believe regarding the benefits of organic snacks that they are cholesterol free, they don’t have any Trans fat etc. Statements like these can win the customers with an emotional appeal.

3) To and Fro: Next area of negotiation can be transportation if company is asking for more discount and discount is not possible in any of terms than the company can give offer of free transportation to the door step of your store/house. That is you need not to pay any price for snacks transportation.

4) Future ordering: The futuristic way of negotiation is like, if customers are asking for discount that the company can give them assurance that this time you need to pay full amount next time a discount of 10% will be given if you order the same quantity as ordered this time