The final core assessment for this course is a two-part paper depicting a role play. You should have received approval from your instructor regarding Part I of your paper. You should be making revisio

SunBright Pro, Inc.

Marneze Davis

Product/Service

SunBright Laundry Detergent

SunBright Laundry detergent is an easy-to-use scented laundry detergent. SunBright detergent is manufactured in both liquid and powder form ideal for removing stains and dirt from colored and delicate fabrics. It is suitable for handwashing, and machine washing of laundry as well as all-purpose household cleaning. Both the liquid and powdered laundry detergent dissolves and penetrates water to clean anything washable. This product can be used in soft and hard water, and is safe for use on different fabrics. SunBright contains chemicals that fight stains, brightens, and revitalizes colors (Alvarez, 2017). To use SunBright Laundry Detergent, buyers will soak fabric in water with liquid or powder detergent for a few minutes before handwashing to loosen up dirt, grease, and other stains. For machine use, mix one scoop detergent equivalent to 60 grams to one liter of water. The product can be used on its own or together with companion starch and laundry sour for all kinds of fabrics. The product should be stored in a cool and dry environment, out of reach of children, and must be used per the labeled directions.

My Company

SunBright Pro, Inc.

(Sunbrightprocleaners.com)

SunBright Pro, Inc. is an American brand of laundry detergents based in Albany, New York. The company is a specialist in fabric cleaners for both home and office markets. The business category is Homecare brands, and detergents. The company’s slogan/tagline is; “softer, brighter living." The products are manufactured by Brad & Nobel, introduced to local markets in 2000. Meghan Sullivan and Mike Johan are the proprietors of SunBright Pro, Inc. (30 % each). Other stakeholders include The Spotless Group, Inc. (24%), and Frost Capital Management (16%). The founders’ mission is to “help people save money, so they live a brighter life," which has been used to promote its campaigns. The company’s mission is to manufacture and package products that are safe for consumers and the environment through a strategy to reduce, reuse, and recycle. SunBright Cleaning Services is one of the competitive detergent brands in the USA, Canada, and Australia, with approximately 12.4% of the global market (Frank et al., 2019). SunBright operates approximately 15 stores in the three countries under the same name. In response to the growing number of customer’s inquiries, SunBright opened three more operation centers in other states, including California, Washington, and Texas, and e-commerce websites in each country (Frank et al., 2019). The company has employed approximately 12,000 employees locally and internationally ( 4000 full time & 35 part-time store administrators and customer service coordinator; 15 full time cleaning specialist, fulltime management; 9,000 full-time employees & 2,000 part-time). SunBright Laundry services stores are designed to ensure customer convenience during shopping in approximately 30,000-50,000 square feet open, brightly lit retail spaces. Its three central warehouses are located in Albany, Ontario, and Canberra close to its wholesale and retail stores. For the fiscal year ended January 31, 2019, SunBright’s total revenue was $1.5 billion (Alvarez, 2017). But having operated for two decades, the partners agreed to retire and sell their business to venture into other related products and services.

My Buyer

Basil Fresh, Inc.

Basil Fresh Inc. is an American based detergent manufacturing company that sells its products and offers cleaning services (Alvarez, 2017). The buyer and CEO of the company is Mr. Basil McGill, who founded it in 2002 as a janitorial company in San Francisco, California, Unites States. As the CEO and sole proprietor of the Company, Mr. McGill oversees the company's day-to-day operations, makes corporate decisions, and acts as the communication point between the board of directors and other corporate leaders (Alvarez, 2017). He wishes to purchase SunBright Laundry Detergent to meet his consumer’s needs of scented, non-allergenic tough stain removal detergents to expand his customer base and penetrate new market segments. Basil Fresh operates in 5 countries, including the United Kingdom, Canada, India, and Mexico. It has 20,000 employees working full time and part-time in 15 stores across the globe with an annual sales revenue of $ 3.5 billion in 2019.

Basil Fresh understands the importance of improving customer confidence by sparking bright clothes, surfaces, and living areas and strives its best to deliver affordable products that meet these goals through innovation and product improvement. Currently, Basil Fresh is committed to providing high-quality laundry services, janitorial and floor cleaning services for homes and offices, dry cleaning, and carpet cleaning services in California and surrounding states. Their client base is comprised of both private and public organizations ranging from 800-10,000 and above square feet (Alvarez, 2017). They offer superiors cleaning services daily, weekly, monthly, or as agreed with qualified staff and on-site supervision. Basil Fresh cleans with the uses of an array of local detergents and equipment such as vacuum cleaners and dusting cloths. My company will replace the domestic cleaning detergents with SunBright’s environmentally friendly cleaning and laundry detergents for a brighter and cleaner look. With its innovative equipment and highly trained staff, Basil Fresh's purchase of my company will translate into improved sales and increased customer satisfaction (Alvarez, 2017).

Buyer’s needs

Need for environmentally friendly products- like most synthetic products, ingredients in laundry detergents may pose a significant risk to the environment. The phosphate used in most soaps was identified as one of the leading causes of water pollution in the United States. Growing consumer awareness and concerns has led to laundry detergent brands to source for safer alternatives. SunBright Laundry detergent brands are among the first “green” or “eco” detergent brands to enter the market in the early 2000s. SunBright products contain at least 95% of organic ingredients and enzymes and are certified and approved by the USDA (United States Department of Agriculture) (Alvarez, 2017). The remaining 5% poses no risk to human health and the environment, and the ingredients are listed on the back of the product containers. SunBright detergents are manufactured specifically to cater to the environmentally-conscious demographic and meet Basil Fresh's need for environmentally friendly products. The use of SunBright products will instill trust in customers, increase profit in sales while appealing to corporate responsibility.

Distribution and sales network - The buying company requires an effective existing distribution and sales network. SunBright Cleaning Services and Products established a robust distribution network that consists of manufacturers, distributors, retailers, and consumers in the United States, Canada, and Australia. Hence, SunBright products are sold in supermarkets, convenience stores, and discount stores. SunBright distribution and sales network will allow Basil Fresh to upgrade and expand manufacturing facilities, and introduce new products in their markets (Frank et al., 2019). As a result, Basil Fresh will make access easier for clients through the existing intensive distribution channel.

Buyer’s Customer’s Needs

Affordable, high-quality products- laundry detergent customers need good quality products at a lower price. Consumers want a value for money when purchasing detergents. Sun Bright has been successful in its objective of manufacturing affordable laundry detergents, and customers are satisfied with the quality of the products and the reasonably low prices compared to its main competitors. SunBright products meet consumer needs by providing cleaner surfaces and brighter and softer clothes with lesser detergent in a single-use (Frank et al., 2019). A person who procures Basil Fresh’s laundry and cleaning services will spend comparably less money due to the affordability and superior quality of Sun Bright products.

What you've done so far with this buyer's firm

During the first three meetings, we discussed the indecency of the present owner. The buyer received a well-documented report about company owners and customer/supplier relationships. We have briefly discussed the sales channels and promotional methods used for targeted customers to purchase products and services through advertisement and distribution. The subsequent meeting included conversations about key market facts such as prioritizing market size, trends, and market share. We had a discussion with the buying company's CEO and financial advisor on the value proposition to answer questions such as why customers buy our products and services, and the uniqueness of the business in terms of location, pricing, geographical location, and services. Via email, I sent the buyer a copy of critical financial facts and forecasts, which shortly described the businesses’ debt vs. equity position and income statement for the last three years (Kotler et al., 2019). We also sent a copy of our company’s tax returns, accounts payable, cash flow statement, advertising costs, and environmental regulations. Reports indicated that my company was financially viable, and sales forecasts were projected to increase by 12% in the next two financial years. Lastly, we discussed the smooth transition of business ownership through negotiations, training, and post-sale time commitment agreements.

The Buyers’ Options

SunBright Laundry Detergent

Prices per 500ml/grams in USD- retail 18.95; wholesale price $ 17.00

Direct Competitor Number One – Tide Detergents

Prices per 500ml/grams per detergent in USD- retail price $23.00; wholesale price $ 21.00

Direct Competitor Number Two – Cleanex Active Inc.,

Prices per 500ml/grams per detergent in USD- retail price $15.25; wholesale price $ 18.00

Objectives

The meeting aims to address best practices in the company that the buyers will adopt in their culture, which can be measured by performance review and customer satisfaction levels and customer lifetime values. The second objective of the meeting is to communicate the changes that will ensure the smooth transition of business ownership. The companies will discuss adoptions of new techniques or methodologies the buyer should use, such as CRM tools and new customer relationship management. The third objective of the meeting is to discuss and agree to terms of sale, which will be signed and documented once negotiations are complete. Lastly, the sales meeting will also discuss the challenges and business risks that the buyer may face and the improvement actions already taken to ensure the progressive running of the newly acquired business.

References

Alvarez, C. (2017). Lean customer development: Building products your customers will buy. " O'Reilly Media, Inc.".

Frank, A. G., Dalenogare, L. S., & Ayala, N. F. (2019). Industry 4.0 technologies: Implementation patterns in manufacturing companies. International Journal of Production Economics, 210, 15-26. https://www.sciencedirect.com/science/article/abs/pii/S0925527319300040

Kotler, P., Kartajaya, H., & Setiawan, I. (2019). Marketing 3.0: From products to customers to the human spirit. In Marketing Wisdom (pp. 139-156). Springer, Singapore. https://link.springer.com/chapter/10.1007/978-981-10-7724-1_10