Assignment task:
You (Mel Hohner) and Sam Tyndal are buyers in Edge's Health and Beauty aids. You both have been buyers for two years, having been promoted from buyer trainee in the same department. You are now responsible for buying all oral hygiene products, and although you like Health and Beauty aids, the number of products is maddening. No sooner does one company come out with a new and improved toothpaste, then every other manufacturer has a me too, new and improved toothpaste. You simply don't have room, either in the warehouse or the stores, for so many varieties. Yes, the customer wants whatever is advertised.
As you look at your watch, you realize that you have an appointment in a few minutes with Pat Coulter and Chris Irwin, sales representatives from for Health Systems. You and Sam have worked with Pat and Chris for several years and like them a lot. When Pat and Chris set up the appointment, they mentioned that Health Systems has a new product they want to show you - you pray it isn't another toothpaste! Health Systems now makes Dento, a specialized toothpaste that reduces tartar and plaque. Although the toothpaste works (you use it yourself), it doesn't have a large market, probably because it is so expensive, but also because the company doesn't market heavily. But you still feel that you should carry Dento for those customers who want it.
With the purchase of Toothpaste, you will want a discount of at least 20% for a 6 month period and have the right to break the product in all of your areas, a slotting allowance for shelf space for all stores, a digital marketing allowance of $60,000 over a 12 month period and a coupon drop for 15% off coordinated with Edge's January and February Sales.
Known to Both Parties
Health Systems and Edge Health and Beauty Aids have been doing business for several years.
The relationship between you and your partner Sam and Health Systems Pat and Chris is a good one.
Health Systems currently makes a specialized toothpaste - Dento
Dento is both effective and expensive
Health Systems has not marketed heavily.
Please negotiate the buying of Health Systems new product for monthly quantities over the next 12 months.
What are the issues to be negotiated?
Q1. What are the priorities among the issues in the bargaining mix?
Q2. What are the primary underlying interests?
Q3. What are my limits on each issues - walkaway points and BATNAs? What are my target points and opening requests on each issues.
Q4. Who are the important constituencies to whom I am accountable?
Q5. What do I know about the other negotiator's interests, negotiating style, and personal reputation?
Q6. What overall strategy do I want to pursue?
Q7. What do I need to assemble - research, documents, charts and graphs, and so on - to make the most effective presentation on what I want to achieve? What tactics will I use to present my arguments or defend against the other negotiator's arguments?
Q8. What protocol is important for the negotiations: where we negotiate, when we negotiate, who is present for the negotiation, agenda to be followed, note taking? Also, what is our backup plan if this negotiation fails?