Marketing Management - Case Study

CASE STUDY

1. Did the wholesalers be regarded as a necessary nuisance ?
Ans:
The wholesalers can be regarded as a necessary nuisance without whom the distributors can not distribute more quantum of product for sales. In stead of having more number of retailers and sell the product, it is always better to have few number of whole sellers and sell the product. The main reason is that, we can control over the price of our product. We can be sure of market trend and act accordingly.
But at the same time, wholesalers should not given too much of privilege on the price of the product. They should be given a cut off maximum rate at which he can sell the product to the retailers.

2. Should the number of wholesalers be increased, maintained or reduced or eliminated ?
Ans:
The wholesalers should never be reduced. Once the number of wholesalers reduced , then it will be difficult task for the management to sell the product through retailers.
The number of wholesalers need not be maintained at the same level. If an organization would like to increase its sales more and more then, it is not advisable to maintain the same number of wholesalers over the period.
Therefore, the number of wholesalers should be increased, in order to sell more quantum of products over the years. If an Organization is willing to increase its sales , then obviously it has to increase the number of wholesalers year by year. But at the same time, it should try to keep the number of wholesalers with in certain boundaries. If the demand is less from the public and the number of wholesalers are more, then it will create an adverse effect . Therefore, it is always better to have required number of wholesalers according the need and trend of the market.

3. How could the distribution be strengthened?
Ans:
The distribution can be strengthened in the following ways :
• There should be proper supply of product to the distributors to keep them always available for meeting out the orders from wholesalers and retailers.
• There should be proper system of analyzing the demand in the market and accordingly products can be provided to the distributors in order to avoid over stocking in the hands of wholesalers.
• The distributors should be made aware of the company’s policy in respect of pricing of the product.
• The Management should be very careful while selecting or appointing distributors for their product. It has to be more selective in appointing capable and effective distributors.

• There should be regular order taking from the distributor and good communication, smooth correspondence between the distributor and the management.