Sales And Distribution Management.pptx

Case Study Analysis On Gem Soaps and Detergents Ltd.

Presented By: Jatin Nagpal (2) Smruti Ranjan Pati (5) Aashi Chauhan (121) Avneesh Kumar(123) Divya Tiwari(124) Pankaj Kashyap (129) Vishal Sharma (159)

About The Case

Problem • The distributors are hampering each others’ profitability by their actions. • Both of them started offering less credit to the weaker markets in their own beat plans and extending more to the other distributor’s customers. • As there was less focus on the width of distribution now, the other players in the market started taking advantage of it by increasing their market share by catering to the badly serviced beats of A and B. • Both A and B are established distributors in the town. They have links with the retailers and wholesalers. They might still use them to discourage C

What do you think the future for GSDL distribution in the city? • In the given case study there is a situation of conflict between the loyal distributors of GDSL. • IS THE CONFLICT GOOD OR BAD? • Conflict is sometimes required between different channel partners so as to enhance the quality provided by all of them • For example, a solution which helps GSDL keep happy each of the channel partners will help it create a stronger distribution network across the place • Lack of any channel conflict indicates gap in market coverage. We can only work towards minimizing the conflict.

What should GSDL do to resolve the channel conflicts and also ensure the successful marketing of shampoos? • Dividing the product portfolio into three divisions:  Soaps  Detergents  Shampoos Things to be checked: • A and B should not suffer. • A and B get almost same in terms of revenue as their old turnover. • The city has to be covered by A,B and C now, so proper allocation of infrastructure, distribution expenses, reshuffled beat plans must be ensured.

Benefits • A and B will not have conflicts for acquiring customers. • The internal war of price will come to an end. • Both will have sufficient business volumes to operate with. • They won’t have much problem with C. • Shampoo business will shine.

Could have the problem resolved without appointing distributor “C”? Following steps to minimize the conflict: For the Distributors: • Market development programs • Super Ordinate Goals • Expenses reimbursements For Retailers and wholesalers • Relationship building programs For salesmen • Incentives attached to goals