Table of Content

Introduction --------------------------------------------------------------------------------------------2 Interpretation ------------------------------------------------------------------------------------------2 Problem statement ------------------------------------------------------------------------------------2 Delimitation --------------------------------------------------------------------------------------------2 Methodology -----------------------------------------------------------------------------------------2-3 List of sources ------------------------------------------------------------------------------------------3

Marketing Sanovo introduction -----------------------------------------------------------------------------------3 Identifying the customer ---------------------------------------------------------------------------3-4 German market analysis ----------------------------------------------------------------------------4-6 Porters 5 Forces -------------------------------------------------------------------------------------6-7 Market segmentation -------------------------------------------------------------------------------7-8 Marketing mix --------------------------------------------------------------------------------------8-13 SPIN -----------------------------------------------------------------------------------------------13-14

Negotiation Negotiation simulation ----------------------------------------------------------------------------14-16

------------------Conclusion --------------------------------------------------------------------------------------------16

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Introduction SANOVO A/S is one of the well reputed Company for the core business of supplying the high quality of egg products. The factory of this company was established in 1942 AD in Odense, Denmark. At present the CEO of this company is Mr. Jorn L. Fransen CEO and at present Henrik Pedersen is the vice president of the Sanovo food A/S. And the Companys strong motto is that they believes that bringing their international expertise create a truly global company with greater flexibility, by improving their service to their valued customer. In April 2007 they brought all of their activities in one group, which they were doing in there company or companys functions into one group. So that in January 1st 2010 Sanovo egg group merged with its sister company called Lactosan A/S into Lactosan - Sanovo Ingredients group. They believe that they are the unique and up to now they have make the strong foundation of the company. This is quiet good for the reputation of the company in the coming future. And as the companys data shows that they are doing better and better in their work as it is growing more and more. Their main benefit is that they are able to offer us a secure supply of egg product because they have lots of production sites or facilities around the world than any other suppliers had. The core values of this company are the finest quality of egg product, extensive know-how, existing innovation and finally truly global service. Interpretation In this project we are going to discuss about the marketing and negotiation simulation part, and for which we will only focus in some specific areas of it. For that firstly we will analyze the market analysis. Then we will do some research about the market. Then we will segment the market and we need to use some important models for this purpose. Market mix is necessary and also we are going to focus in the promotional mix the most. We are going to use the model (David Jobber, fig 16.2) in order to explain the consumer and trade promotions. And also we are going to use the SPIN model. Problem Statement Identifying the potential costumers of Sanovo? Analyzing the German market? What may be the Market segmentation on behalf of the Sanovo A/S? What could be the promotional activities Sanovo can work with? What are the features and benefits they offer to their customers? As part of preparations for future sales to Kraft, how is SPIN useful? How can Sanovo use a negotiation simulation to come to an understanding between 2 parties? Delimitation Our first boundary is that we are not allowed to contact the company in any way. We have just seven days to finish our project. We are only allowed to write 15 standard pages including 2 pages for negotiation simulation which is very important part of the project. As we have not so much pages to write thats why we will only use some of the relevant models and theories related to the subject and a delimitation of the remaining. When using the marketing mix we are going to skip the models explanation of other market mixes, like product, price, place etc. Meaning that we will go through the best models steps by steps through our red line. Methodology Our methodology for the project this semester will cover the marketing part as well as negotiation part. For this firstly we are going to do the market analysis. Furthermore we are going to do some analysis of the German market. Step by step we will use Porters five forces which are helpful for

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the competitive strategy for analyzing the Industries and Competitors. Especially this model is used in understanding of industrys structure and the way they changes and we think it would be very important for our project part. Understanding organizational and buying behavior is very important thats why we make a decision to segment the market. As we know that we are going to write about the company we wont use price, place, product etc of the 7 Ps. As we are going to explain about the Company its necessary that we need to know about the major sales of promotion types. And for that we are going to explain the figure 16.2 where we can describe detail about consumers and trade promotions. And finally we are going to use SPIN model because no matter what the business about we need to sell our products and services. And for this SPIN model is very important. List of sources Books: - David Jobber; Principles and practice of marketing, 5th edition; pages .. - Jean M Hiltrop & Sheila Udall; The essence of negotiation; pages ... - Michael Tommerup; Personal sales compendium; pages ... WebPages: - www.sanovo.com - www.kraftfoodscompany.com

Marketing
Sanovo introduction Parent company: THORNICO is the globally established company dealing with the food sector and packaging, shipping, real estate, sportswear & fashion and financing. SANOVO is owned through the Danish parent company THORNICO A/S under the branch of Lactosan-Sanovo Holding Group. As you know Sanovo is department for the egg processing products. It only produces different varieties of egg processing products like Free Range Egg Yolk Powder, Free Range Whole Egg Powder, Free Range Egg Albumen Powder, Free Range Liquid, Egg Yolk Products, Whole egg liquid products Whole egg powder, Egg Yolk Liquid Products, Egg Yolk Powder, Egg Albumen Powder, Catering egg products. Providing the finest and qualitative products the company is able to gain the position of market leader in the particular sector. This company has been successful to maintain the good market position both inside and outside the nation; to make the distribution channel simpler Sanovo has set up different production sites, sales offices trading houses and R&D center.

Identifying the costumer Sanovo produces egg power and liquid products in the food industry so that the costumer company can produce the further products for the final costumers. Egg products are used to produce fine food products (sauces, dressings, and dips), Bakery products, confectionery products,

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meat products, catering. So to find out some potential costumer we have to look through big companies producing these items. Denmark: In Denmark itself there are many companies producing the items that uses egg products to get a final product. So we should focus on such a company that has many products that need egg powder or liquid, one of such company is: Andersen's of Denmark Ice Cream: This particular company was established outside Denmark in Solvang, California in 1978 under the name of The Great Danish Cone Company. Currently it has franchise system for international expansion. This company could be in long term relation with Sanovo as both needs each other as one supply and other needs the egg processing products. Sanovo would be in gain if they keep Andersen's of Denmark Ice Cream in target costumer. So the first thing Sanovo should do is to have a look in company profile of Andersen's of Denmark Ice Cream. In order to understand the potential customer, we will look in to the some of the factors of our potential customers, i.e. who makes the buying decisions, the back ground of buyers, considering necessary business terms, purchasing policies also which competitors are in contact with the vision and the history of the account like past business relations. The buying and selling process often takes a relatively long time due to high information need perceived by buyer also feeling of high uncertainty in relation to product benefits and need and involvement of several people within buyers organization. Germany: Germany is the big country with big number of costumers, so it is obvious to have varieties of products produced by the producer of the bakery, ice cream, dressing and meat products etc. The Asheville Cake Company: This company is a cake company in German struggling from long time back. The only microbakery for custom cakes and cupcakes was modified in to the Asheville Cake Company by the continuous effort. Today this company has cakes of many flavors and creative size and shapes to attract the costumers. Costumers are any way loving the taste of cakes by Asheville Cake Company. Their hand craft are so clean that they can make anything out of cakes. So what I think is this type of company could be the potential costumers of the Sanovo egg groups.

German market analysis Analysis of the market of Sanovo in German can be done in two different ways; internal and external analysis:

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Internal analysis As per the company voucher states that it is the market leader in the German market so we can create PLC pointing the status of the company in the growth stage and the predict that the company is under star at the Boston matrix. External analysis Understanding the market environment is the basis for the external analysis. As market environment are the actors or force that affects the companys ability to provide the qualitative goods and services to their costumers efficiently. This can be done on the basis of micro and macro environment. Micro environment is the actor in the companies that affects the companies immediate capability to operate efficiently in the chosen market and macro is simply the PEST analysis. Political factors: Political factor is how much degree a government intervenes in the economy. Political factors include areas such as tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability. Sanovo must adapt their sales efforts to the German market, so they do no violate any laws. Economic factor: Economic factors include economic growth, interest rates, exchange rates and the inflation rate. These factors are important for the company to operate and decision making. Interest rates affect a firm's cost of capital. Exchange rates affect the costs of exporting goods and the supply and price of imported goods. GDP was 2,241 billion Euros in 2005, it also indicates that Germany is one of Europe's top 5 countries over highest GDP. Social factors: It includes the cultural aspects and includes health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. For example an aging population may imply a smaller and less-willing workforce could lead to an increase in labor costs. Social factors will influence the final choices for Sanovo's sales effort, advertising campaigns etc. Technological factors: It includes technological aspects such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions.

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Environmental factors: Include ecological and environmental aspects such as weather, climate, and climate change. Growing awareness of the potential impacts of climate change could affect how Sanovo can operate in distributing goods to hole Germany. Southern parts of Germany has mountain-rice areas which can be hard to reach if weather blows up and into violent storms or as often seen roads falling away because of the earth beneath being washed a way by heavy rain. Legal factors: It includes discrimination law, consumer law, antitrust law, employment law, and health and safety law. Many countries within/outside Europe are/becoming a part of the European Union EU, at that means that many laws now a days matches each other from country to country within the EU. One area where Denmark differ from Germany is the way their labor laws function, where in Denmark they use the Flexicurity-model.

Porters 5 Forces Simply we can say it is the objective of finding the key point or the powerful tool to find out where exactly the power lies in the business. And off course it is very important part of the business to understand the strength of the competitive position and the strength of the competitor where we are planning to move. And for determining this there are five important forces. Supplier power Buyer power Competitive Rivalry Threat of substitution Threat of new entry

SANOVO food a/s is one of the well reputed Companies and in Denmark it is one of the market leaders in the field of Egg products. As it is doing better and better day by day the value of this companys product being more and more likeable by customer. Because of which most of the restaurant are using these product in Odense and all over Denmark, and also in other countries. Being the market leader its always easy to make the profitable price because customers are well known about the product and they dont care about the price if they are getting the good product. Customers always need the quality rather than the quantity. They are just buying the egg product not the Gucci bags so the price needs to be in the way they like to have it. Otherwise there might not be attracted towards the product which they are buying. But as we see the market value of SANOVO food a/s its awesome so they dont have any problem with the customers. As we see the history of the SANOVO food a/s, this company is doing better and better. So in our opinion up to now there is not so much competitor in the field of egg products. So we can say rivalry is not so much or simply we can say its low. Example for high rivalry we can say the substitute product if customers move from coke to water then we can say it is the high rivalry.

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For almost every product customers have choice of viable alternative on a free market meaning that if the product having the same purpose in cheap price, and then its sure that customers are more attracted towards that. And in the case of Sanovo we think that due to the good quality product most of the customers have their attention towards it, meaning they are more attracted towards it rather than other cheap product seems to be like same but in real they are not good as comparison to this product. There are many reasons which make threat of new entry. In same place there are many companies making the same product which means the target group or the customers are same for the particular product. And its the same in the case of Sanovo food product also, there are many companies which are making the same product meaning there is a huge competition in market to attract the customer towards their product. Slow growth of the company could be the reason for chance of new entry of another company. If the costs of the products are high and are fixed then there is chances that the mind of the customers could be divert towards the another companys product. Low level of product differentiation could be the main factor to capture customers, because if they have many options in market then they have more chances to choose the product which shows the way to customers to choose the best product. But in case of Sanovo they are the market leader so they dont have so many problems to attract customers towards them.

Market segmentation Simply we can define market segmentation in term as the division of a market into some identifiable groups, especially to make some changes or improve the effectiveness of a marketing strategy of the particular company. Mainly there are some basic market segmentation strategies. As we are working on business to business we think better to define it in macro segmentation. In macro segmentation following points are main important to define company in better way: Organizational size: As we know Sanovo food a/s is supplying egg products to different grades of costumers. So rather than focusing in the small companies its always better to target the company having a good reputation or a big company. Because if we target the small size company we need to hire more employees or we will need more man power. If we focus on the small companies then all the extra costs like delivery time, packaging cost, more employees etc might need to suffer. And its not good for the company. And on other hand if we have contract with big companies we can sell more products and we can save time as well. Large organizations always differs more than other small and medium sized organizations because of having greater order potential and special needs e.g. quantity discount. Bulk quantity selling has always been easy to deal with and also it minimizes the wastage in terms of package. It is always better to make lump sum money rather than collecting small amounts that may be the reason for which Sanovo should focus on lump sum dealings. Industry:

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Industrial sector could be another macro segmentation factor. Different companies are doing their business in different sectors and have unique requirements for their product. In b2b marketing many companies deal with each other to fulfill their requirement within themselves, so do Sanovo. How logical would it be if Sanovo select a company other than food industry for the marketing? Well I would say its stupid to select other companies for applying their marketing strategies as the other companies never need the products of Sanovo. Finally they can always hope for the companies working with foods to be their customers. In case of Sanovo food a/s they are producing egg product and can supply to different areas like restaurants, bakeries, ice cream factories etc, and meaning that all have their own use. And by knowing the industry clearly or knowing them in depth we can design the marketing mix in much proper way. But in some cases its not always same because in some cases we need to make the further segmentation. E.g. In the case of education sector we need to further segment like, primary, secondary and further education. And its clear that for this we need have different product and services. Geographic location: Geographic location is equally as feasible as company size. It tells a company a lot about culture and communication requirements. For example:- A company would adapt a different bidding strategy with an Asian company than an American customer. Geographic location also relates to culture, language and business attitudes. For example:- Middle Eastern, European, North American, South American and Asian companies will all have different sets of business standards and communication requirements. For these sorts of problem its always better if there is systems of giving education about the culture problem which can be occur in the company during work. It could be the easy way if the leaders have a good education about the cultural changes and cultural differences so that he/she could handle the employees easily. Most importantly how convenience is it for Sanovo to deliver the goods for the customer company. Is it too time consuming, is it too expensive i.e. is it profitable for the company. So it is always a better idea to choose the locations that are more convenience. Not only this, Sanovo also have to see where the more and big food industries are located because more close the customers are, more easy to supply the products. Minor Conclusion: Keeping all things in mind company size, type and geographical locations Sanovo should try and implement market segmentation so that it is more systematic and easy for Sanovo to promote their products. This segmentation should be done in a process like selection of industry type then after the size of them and at last the geographical locations or the other way round. The main important this is while applying the market segment and market mix strategies all these three points should be dealt in detail. Marketing mix The major marketing management decisions can be classified in one of the following four categories: Product, Price, Place (distribution) and Promotion. These 4 P's are known as the marketing mix. They are factors which a marketing manager can control in order to best satisfy customers in a specific targeted market. Sanovo egg groups business aims are to develop and sell high quality egg based raw materials and semi manufactures for the global market. They offer a

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wide range of egg products and with many types of liquid, frozen and spray dried eggs. We will use marketing mix for Sanovo to help them to reach their objectives. The marketing mix is controllable variables which have to be careful managed and must need for defined target group for Sanovo egg groups. All elements of marketing mix are linked and must support each other. Product Sanovo egg products are functional, customized and nutritional. These products mainly serve sauce, dressing, bakery, confectionery manufactures and food service industry. These products supply solutions of best quality at the requested price level. Sanovo egg products are based on achieving a high market share and increase the brand awareness and loyalty among buyers by achieving customers satisfaction. By doing this task we are going to chose two products of Sanovo and analysis them to get satisfaction of Kraft food's customers. Product line: Sanovo group offers a wide range of egg products, but for the Kraft foods company two products will be the main ingredients for our suggested advertisement campaign: Free range Whole hen egg powder Whole hen egg powder

Product analysis/Preparing the FAB Introduction As we know products are for selling and for that its necessary that a salesman provide some services or some easy ways to sell the products. We are well known about the fact that if the customers are buying the product they are not only buying the goods but also the benefits of that. If the salesman is new or not so much well experienced in selling department, he/she could give the detail information about the product but not the beneficial terms of the product by which the customers are attracted. It is clear that the buyer buy what the product do for them, not what the product is!, meaning they simply buy the benefit. Now we will analysis our chosen products with features, benefits and advantages (FAB) to motivate by the benefits the products represent. Its best way to offer more benefits to the potential buyer especially compared to competitive offers. Features: Always a reasonable price accordance with the food regulations

Suitable for mayonnaise, fine food cosmetics, dressing, sauces, emulsified systems and food service industry. Availability is German market Give high level of food safety Varieties product categories

Advantages:

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Not the use of too much employees High level of food safety Good mixing ability and good foam strength Need minimum room for storage Fulfil the buyers specific requirements Flexible with size and shape

Benefits: Ranging from convenience and ease of use Hygienic egg processing food Uniformity and stability to further improve the function in the final product mix. Attracting packaging

Every company has some mission, vision and values and in order to keep them alive and strong and in order to make the company growing in future, they predict and they have some expectations from their customer. So we suggest some model for the company which can be helpful for them in future in increasing the sales and growth. As we have discussed those customers dont buy the product they buy the satisfaction the extent to which that product full fills their need. When we talk about quality products, it differs from customer to customer; it can be the brand and also can be the quality / performance, reliability and durability of the product. So in every cases of food product the company needs to give the quality to the customer rather than the quantity. And by which the reputation is made. Price Pricing is most important element of marketing mix. A pricing strategy is mostly depending on the requirement for net income of company and the objectives for long term market control. Pricing mix is generating turnover for the company. Pricing is also reflecting supply and demand relationships. Pricing a product too low or too high could mean a loss of sales of the company. Talking all the things into consideration we decided that Sanovo egg products will be set a price that is the economically the same value the customer perceives in the products while meeting profit. The general marketing strategy for Sanovo will be rapid penetration strategy to get the large number of sales and to get huge share of the market. The aim of this strategy is to increase market share and to attract more customers in German market. By using this strategy Sanovo introduced new products keeping relatively low price with high promotion in order to penetrate the target group as fast as possible. Advantages: Sanovo can launch new products at low price

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Sanovo can spend more on high promotion The way of the fastest market penetration and share

It can be also suitable for Sanovo to set value based strategy with the aim of rapid penetration strategy Best way of attract more customers Place Place strategies Sanovo's organisation must distribute the product to the user at the right place at the right time. Efficient and effective distribution is important if the organisation is to meet its overall marketing objectives. If an organisation underestimate a demand, and customers having a hard time to get the products they need, then will profitability be affected. Sanovo can work with and benefit from both channels. What channel of distribution should Sanovo use? There are two types of channel of distribution methods available: Indirect distribution: involves distributing your product by the use of a middleman. This benefits Sanovo in the way that the easier can reach a large market of customers, in this case smaller bakeries which shops Sanovo powder from wholesale dealers. Direct distribution: involves distributing direct from a manufacturer to the consumer. The advantage for Sanovo of direct distribution is that it gives them full control over their product. Distribution Strategies Depending on the type of product being distributed there are three common distribution strategies available: 1. Intensive distribution: Used commonly to distribute low priced or impulse purchase products. 2. Exclusive distribution: Involves limiting distribution to a single outlet. The product is usually highly priced, and requires the middleman to place much detail in its sell/look. 3. Selective Distribution: A small number of retail outlets are chosen to distribute the product. We would suggest Sanovo to work with intensive and selective, to satisfy both the large customer and the high amount of smaller customers. If Sanovo decides to work with an selective strategy they should select a middleman, which has experience of handling similar products.

Promotion A good product is not enough for business, and thereby to be sold at a good price. Adding value is a keyword to increase the value of the product and the customers perception of the the product

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and it's brand. To generate sale in order to increase profit the product have to be communicated to the customer. This communication is known as promotion in marketing. Marketing communication program is known as promotion mix: Advertising: It is a paid form for non personal communication of products or ideas, like; newspaper, billboards, radio, internet, TV etc. Advertising is use to make the target audience aware about the product, so they can satisfy a new potential need. The two important aspects of advertising is message and medium. Sanovo can use advertising to reach a large target group. Personal Selling: It is the oral communication with the potential buyers in order to make a good relationship with the buyer. When Sanovo get orders from customers which take large amounts of powder (tons), then is very important to have a good relationship with their customers. A negative side of personal selling is that it easily become and expensive and time hungering part of your business. Sales Promotion: It provides different incentives to the customer or to the distributor, with the intention to increase the sale of the product. If Sanovo work with a middleman, then can sales promotion be a key to control some of the real life promotion, e.g. every time customers shop at their wholesale dealer they may experience at first hand Sanovo's potential increase sales effort within the shop. Public Relation: It is basically the relationship between public and the organization. Relationship is built to ensure that the company or organization has good public image. The activities of public relation are to help out the customer to understand the organization and its products. Sanovo here has a cheap way for reaching customers, but the disadvantage is that they can have a hard time of controlling what people write about their products. Direct Mail: Direct mail is the promotional method through which the company directly sends information in the form of email regarding their products and services. The email addresses are carefully saved in the database, to avoid to most junk mail, and that have a low cost factor and saving time for the sales apartment. In old days Sanovo had to send a lot of post, thereby a lot of waiting time, now with the use of mails, can answers and orders etc. be fast communicated between Sanovo and it's customers. Sponsorship: Sanovo can sponsor many things, but it is through the right selection that they benefit the most, in that sense is it important to clearly chose sponsorships where they get the best associations. Because the event attributes are associated with the sponsor company. Promotion suggestion: We would suggest Sanovo to act differently on new and existing customers according to the marketing mix. The main product should be the same for both categories, but the approach should be different, when dealing with existing and new customers. Solution example: Existing customers: - Keep customers satisfied by holding a good price, quality and meet time of delivery - Be flexible on customer demands

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New customers: - Offer same service and providing same quality as existing customers - Extra, give a discount on the first 2 orders - Extra, Give the customer a possibility to chose a mix of products (trial versions) along with the first order, so that the customer can try out the range of egg solutions, and thereby chose the favourite egg solution for their potential next order.

SPIN SPIN focuses on achieving an understanding of the buyers situation, and to help the potential buyers to understand the consequence of some of the situational factors that might have a negative effect. This the best technique to analyse and realize their customers potential problems together with the customer. This phase in the sales process deals with identification of the potential customers needs/problems, the understanding of the consequence for the buyer, and the development in the customers perception of own problems and needs. Case: Sanovo egg group wants to advertise themselves together with Kraft food in an advertisement campaign - TV spots nation wide on the Germany. The idea is to promote their new mayonnaise product series. The series which are being advertised consist of 2 new products , 1 which is standard mayonnaise and the other is mayonnaise which consists of free range eggs and rest of it ingredients is organic. They want to let the customers perceive that Kraft together with Sanovo is providing 2 choices of good mayonnaise to the customers. Kraft part in the movie will be seen as the supplier of 2 new products, where Sanovo will be seen as a partner to Kraft, providing an important quality ingredients to Kraft's mayonnaise. SPIN Situation: - How large should the sales force be to handle new orders incoming? - How long do the TV spot has to be in the air/online? - How much are you willing to pay per TV spot and how much in total approximately? - Which time frames of the day would you like to broadcast your TV spot? - Which TV shows do you like and dislike to be broadcasted with? Problem: - What are your requirements for the message (perception) you want to send to customers? - What do you normally do when you introduce new products to the production

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- Is certaint times of the year (seasons) a problem to you in according to you introducting the new mayonnaise series? - Will a nation wide introduction be a problem for you, or is it better to divide the German market in to bids? Implication: - When planning a new introduction, what are you planning to avoid? - What should not happen? - Have you ever calculated the total cost of your TV spot advertisements and hold it up against other ways of advertise (here I am thinking of over-advertising a product)? - To advertise together with Sanovo's egg solutions could it have any implications for your brand? Need-payoff: - Do you think that the savings in advertising costs will benefit your profit when advertising the series together with Sanovo? - Do you think Sanovo's brand will add value to Kraft's brand? - What do you consider most important? - Would it help you if we produce a 5% extra buffer to our storages for the time up to and a bit after the introduction of the new series. In the case of successful advertisement, so that we (Sanovo) can provide fast egg powder if needed?

Negotiation
Negotiation Simulation The purpose of this negotiation simulation is to surface key issues and potential solutions to the points of impasse which will likely arise in meeting. This negotiation simulation is designed to stimulate debate, address points of conflict, and identify potential solutions. For that we will look in to six steps of negotiation. Preparation for Negotiation: paalsgard management have arranged meeting with the Chinese bakery chain to have effective deal regarding present and future potential business. The Company has a proposal of innovative products based on the current needs of the customers. Many things are need to be discussed through which paalsgard get to know the buying motive of the customers and their concerns about effective deal. Developing Strategy: To be effective the negotiators need a common understanding of what is to be discussed in the meeting and why. Strategy is a set of behaviors that are observable, at least in principle, and associated with a plan to achieve some objective through bargaining. A strategy will not necessarily manifest exactly the same tactics in every application; it will be adapted to the special features of the situation at hand. We need to learn as much about the other company

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situation by asking them about their opinion. As a management it is always better to have clear and transparent agenda with precise background information about your customer which you are going to negotiate. Getting Started: In our negotiation opening we will use two techniques Introduction and the proposal The introduction Formalities would lead the second party to understand that we want to have a polite discussion on the proposal. Proposal We will have a proposal of more reliable, time saving, cost saving with multiple FAB products based on the current and future bakery products trends. Building understanding: Here we will look in to three approaches adopted in our negotiation. Getting information: In this phase our management will get all the necessary information about the customers needs to use more appropriate and innovative products for better processes of bakery items, what are the concerns that need to be focused and requires detaliling. Testing arguments and positioning: Then we will go through the argument about the different methods through which bakery potential customer could change their usage of current traditional products. Using timings and adjournments: parties have a time to get prepared for the next meetings as per the last offers made from the other party. Bargaining: This is the phase where one of the parties has to prepare him/ her for getting and making concession during the meetings and if there a rise a deadlock then one of party will break it with the precise explanation on different levels to convince them. It includes three approaches like as we have mentioned before. Getting and making concession: One of the parties will make a good concession for the both party for a long run process. Breaking deadlocks: Its normal to have the situation during a negotiation when arise a problem of deadlock due to some misunderstanding and overconfidence or something of illusionary conflict which will be solved through the precise explanation. This may also include some offer like if and then case.

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