SDM IMD 2014-15

Shri Dharmasthala Manjunatheshwara Institute for Management Development

Mysore
PGDM End Term Examination – September – October 2015
Term – IV
Course Title : Sales and Distribution Management
Faculty : Jayakrishnan.S
Duration: 90 minutes Max. Marks :30 marks

Instructions to Candidates:
A) Answers to be limited to maximum of 10-15 points for 15 mark questions.
B) Assumptions should be based on theoretical and logical framework for case analysis.
C) Content is more important than the length of the answer.
D) Assistance from Friends, Books, Notes, Mobiles, Lap tops and I pads are not permitted in the exam.

PART A

Answer the following 3* 5 marks = 15 marks)

1) Coal junction is Metal junction's (promoted by Tata Steel and Steel authority of
India) coal sales division which enables the entire coal buying community in India
to buy coal through the Internet. Coal junction conducts sales on behalf of Coal
India Limited (CIL) and its subsidiaries, the largest coal conglomerate in the
world. It has sold more than 150 million tonnes since 2005 and has more than
13,000 registered unique buyers from the Indian subcontinent.
a) How this model will provide value for coal sector and other industrial sectors?
b) What are the key distribution functions and utility coal junction is providing to
customers?

2) Flipkart has dragged Nikon India to the Karnataka High Court for placing an alert on its
website cautioning consumers from buying its products from the online marketplace and rival
Snap deal. Nikon India's caution notice dated June 16, 2014, said ecommerce websites "like
Flipkart, Snap deal are not our authorized partner/dealer" and asked consumers to "check the
warranty entitlements while buying from online portals." "They have singled us out and they
cannot make such statements," said a person familiar with Flipkart's case. “We are selling the
same product and therefore, we are asking the high court to restrain Nikon from publishing
the statement on their website." The case was filed on August 3 and the next hearing is
scheduled on August 21, according to the court's website. Flipkart did not respond to an email

1
 SDM IMD 2014-15

seeking comment on the matter. Nikon India said it received a letter from an advocate
regarding the issue and is studying it. It declined to comment further, saying the matter is
subjudice (Reference: ET, August 2015).
a) What is the cause of this channel conflict and its impact on Nikon and Flipkart?
b) What sorts of channel power can Nikon use to control ecommerce players and resellers?
c) Suggest a channel conflict resolution strategy and substantiate your suggestion.

3) After five years of operations in India, Alibaba.com, the business-to-business (B2B) arm of
China’s Alibaba Group, is introducing a new reseller strategy in the country to boost sales
growth. A reseller is a domestic Indian agent who will connect a small and medium enterprise
(SME) or a manufacturer or supplier in India to customers of Alibaba. The company will be
partnering with resellers who have local contacts, resources and knowledge to service SMEs
better. Despite starting out in India in 2010, Alibaba has kept a low profile and expanded
cautiously, unlike its global rival Amazon, which has promised to pump $2 billion into its
local arm over time. By adopting the reseller strategy, Alibaba said it plans to accelerate sales
growth.
a) What’s advantage for the seller and Alibaba by this effort?
b) Explain briefly the terms and conditions that Alibaba should take into consideration when
they shift to this model.
c) What should be evaluation criteria they need to consider for the channel intermediary?

PART B (1* 15 marks = 15 marks)

The Mahindra Group is set to sell pulses and edible oil in consumer packs in the next few
months under a new brand, Nupro, to expand its agribusiness. Mahindra expects sales of
Rs 50 crore in the first year with the launch of the products in the metro cities. Its
agribusiness division is one of India's biggest grape exporters and its basket of fresh
produce includes pomegranates, mangoes and apples. The company will compete with the
Tata Group and Adani Wilmar in the branded category of the pulses market, which is
dominated by regional players. According to industry officials, Mahindra has been
exploring the pulses market since 2013 and started catering to wholesalers under the
Finegrade brand in 2014. "Under the Nupro brand, we will sell Arhartur (pigeon pea) and
Chana (chickpea) pulses to begin with, followed by other popular pulses like Urad (black
gram) and Masoor (lentil). In edible oils, Mustard, Soybean and Rice bran will be initially

2
 SDM IMD 2014-15

launched," said Ashok Sharma, CEO, agri and allied services, M&M. The company is
also exploring entering the dairy sector. About 22 million tonnes of pulses are consumed
in India a year of which 2 per cent is sold in branded form. Pulses are an important source
of proteins and the Rs.1.2 lakh crore market is growing 10 per cent annually .Mahindra
will exercise control over the quality of the products by procuring pulses and oilseeds
directly from farmers. "We want to address the issue of chemical and high moisture
content in pulses and will be working with pulses farmers in Latur,"said Sharma. In Kota,
Rajasthan, the company will work with oilseeds farmers, mainly for mustard and soya
bean. "Our focus is to cater to a niche segment with our unadulterated good quality edible
oil to enter the organised edible oil market” said Sharma. Annual consumption of edible
oil in the country is about 19.5 million litres, with as much as 70 per cent imported.
Sharma said the agribusiness division clocked a turnover of Rs 1,000 crore in 2014-15.

a) What are the key sales management competencies Mahindra group require to make
this venture successful?
b) Which strategy Mahindra should adopt for enhancing the sales (Push or Pull)?
c) What are the key marketing flows you consider in designing the Distribution channel
for Mahindra?
d) Suggest a distribution strategy (Direct or Indirect) for Mahindra. Explain the key
aspects Mahindra need to consider before deciding on the distribution channel.
e) Enlist the key channel offerings Mahindra can provide to farmers by this model?

***************
All the Best