Kelsey Mfg Co.:One of the largest Mfg.

of repair materials For Tyres & tubes in the United States

Three brands: Lion(54%),Topps(10%),Air Float(36%) Market share: Management objective: to grow at 10% per year
In 1992 Acquired by a large Diversified chemical corporation Added new product line consisting of 280 items in category of tire valves & accessories Firm believed to hold 15% of tire and tube repair market Many Competitors like H.B Egan, Bowes Seal Fast etc. However Kelsey marketed the most complete line of products in their field

Customer preference shifting from Hot patches to chemical bond patches Kesley having production advantage in Hot patches Technological changes leading to improvement in tyres as well as road quality leading to less use of tyre repair materials However this is offset byIncrease in no. of vehicles & no. of miles travelled Use of 2-ply tyres on new cars instead of 4 ply tyres Increase in no. of Mobikes , Ind. Tyres & other inflatable rubber/plastic items Company also selling to export market and selling under private brands to major Oil companies, chain stores, and Sears

Kesley Mfg. Co

Exports

MR

Oil Companies

Chain Stores

Warehouse distributors Jobber(Whol esalers) Service stations Automobile owners

Stagnated Sales
Lengthy channel of distribution Loyalty of MR(non-exclusive)-handling other automotive lines Lack of product benefit awareness(communication) among service operators Large no. of product lines to handle

Savings from elimination of distributors may be shared with MR & wholesaler Efficient information flow

MR has to reach more number of customers Logistics cost will increase for Kelsey

MR can devote more time to make the customers aware of the value proposition Reduce confusion among the service operators

Revenues may decline Will not be able to offer complete product line

MR to be made responsible for Marketing activities in coordination with jobber

Will create awareness among service operators Conduct promotional activities

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Create demand pull in the market Efficient information flow

Work load of MR will increase Cost will increase due to additional expenses