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Q1.

If Teracom adopts the distribution model of B2B to penetrate retail


markets, do you think it will be successful? Why?    
Truly. On the off chance that teracom embraces the conveyance model of B2B
(Teracom-Distributors-Retailers-Consumer) to enter retail showcases, it will be
fruitful.

In spite of the fact that Teracom, being one of India's quickest developing
organizations and with business premiums in both the telecom and force
framework parts, had an entrenched institutional conveyance arrange that they
needed to use, they were confronted with contrasts in retail buyer conduct from
one district to the next in a different market of India with immense geology and
various culture.

 To have a wholesaler between retail (B2B model) would intend to


incorporate somebody who has a superior comprehension of client's need
(their traditions, culture and conventions) and thus mean better business
and market catch.
 With B2B, Teracom will have a superior serious edge in the market with
utilizing its circulation channel by means of the merchant.
 The cost offered by Teracom will be relatively low and great for the
purchaser as there are no go-betweens (telecom) in the middle of yet the
wholesaler who is going to expand the income with bigger piece of the pie.
 Teracom could rise as a dependable brand and could form shopper's
mentalities towards itself with the assistance of the wholesalers.
 With India turning into the world's quickest developing and serious telecom
showcase, the advantages of entering and being one of only a handful few
and likely generally perceived in the retail advertises are high so embracing
B2B appears to be entirely productive for the Teracom.

Q2. Assess Teracom's strategy to have aseparate distribution channel for the
retail market. What should be the appropriate channel selection process for
selling modems in the retail market?
There are two main considerations behind having a different dispersion channel
for the retail advertise:

 Teracom would not have the option to utilize its business power of
institutional wholesalers, which is devoted to business deals just, to
straightforwardly convey to buyers.

 Due to tremendous topography and different societies, Teracom was


confronted with contrasts in retail customer conduct starting with one
locale then onto the next. The organization understood that it would not be
sufficient for Teracom to get by with just institutional vendors. It is
important to choose various wholesalers retail clients – the individuals who
might comprehend nearby conventions, customs, and culture.

Appropriate channel selection process will be decided upon meeting following


criteria to evaluate the distributors:

 An increase in reach by catering to the maximum retailers in the area.


 Optimum investment in terms of vehicles or storage – The key to success in
this retail segment were proper storage and warehousing facilities., as well
as proper market coverage by the distributor to ensure a wider distribution
of the product.
 High-quality sales force – Telecom retailers needed to have technically
competent personnel to advise retail customers to purchase the right
modems.
 Participating in promotions run by the company
 Educating retailers about the modems

Q3. What is your assessment of the first three applicants? Do any of them
provide a unique and distinctive advantage to the company? 
With a couple of fundamental contemplations of desires from the merchants as a
primary concern, here are the appraisals of the initial three candidates:

First three applicants for the distributorship


Variables
Sharma & Sons Pawan Distributors Rajdhani distributors
Pawan Distributors
supplied modems to
They cover 150
various government
With S&S fairly new retailers in Delhi, have
Reach in the organisations, institutions,
in the market, the been in the 3G
market (by and telecom companies
reach will not be business for 2 years
catering to plus their salespeople
penetrated to the and in general over the
the would visit institutional
fullest. Currently preceding 5 years have
maximum buyers regularly to
they cover 200 retail developed a favourable
retailers in negotiate and receive
outlets for their sales relationship with the
the area) orders which indicates
target. retailers. This sounds
that their market presence
promising.
and hold is strong and is a
favourable point.
Nothing is mentioned
They have 2 vans and
about the vehicles but
an average inventory They have only one
since they were supplying
of Rs 4 million vehicle and as well that
Optimum goods to 50 institutional
inventory per month, they are not ready to
investment customers seems like they
this seems a low invest in any more
in terms of had fine number of
number but S&S is vehicles and nothing is
vehicles or vehicles, they had a small
ready to expand it as mentioned about the
storage warehouse to meet any
per the requirement, storage capacity.
emergency needs, it does
which is quite Seems not favourable.
not seem very favourable
favourable.
for them.

High-quality The sales force is of The sales force is of only They have a very low
only 10 employees,
10 employees, which is sales force plus the
which is low and as
low, but they do sufficient same was not going in
sales force well they have
marketing and provide the market to fetch
limited knowledge of
after sales support. orders.
the product.
They are already in
sufficient marketing and They seem a little rigid
Participating
S&S are ready to service support, which with their thought
in
mould their indicates they have process and do not
promotions
organization to meet sufficient knowledge and seem to be very
run by the
the requirements. will be participative in participative in
company
promotions run by the promotions if at all.
company.
S&S employees are No, the sales force is
less sound low as well as they do
Educating technically (not not seem to care in the
Yes, they have this
retailers favourable), but they market to get orders
capability with their team
about the are inclined to adapt, and know much about
of 10.
modems adopt and learn and the product and after
expand as per the sales service, not
requirement. favourable.

As can be seen from the above table, Pawan distributors offer an edge over the
other two distributors.

Q4.
(a) Is Sambhu Brothers the best choice to be appointed as Teracom’s distributor,
or would that be a risky decision that may not achieve Teracom’s objectives? 

According to me by referring the case I think Shambhu brothers appear to be the


most ideal fit to accomplice telecom as a wholesaler Due to their earlier
relationship with beetel and their solid infrastructure with 6 vans and 400 outlets
and also their ability to attract customers and retention for the old ones Hence
they ought to feel free to grant its distribution to shambhu brothers only.

 (b) What can Puneet Jain do to arrive at a strong performance evaluation score
for retail distributors?

In view of our investigation the four wholesalers and the necessities of Teracom ,
Sharma and Sons ought to be dismissed because of their constrained
comprehension of the modem item and their relationship with the retailers being
at a crude stage.

Pawan wholesalers are a solid player in the B2B setting. Anyway their absence of
related knowledge in the B2C area precludes their chance of choice.

The reluctance of Rajdhani wholesalers to put resources into a vehicle to cover a


bigger number of retailers and hesitance to exit from their other retail
organizations makes them a conspicuous reject for Teracom.

Sambhu siblings appear to be the most ideal fit to accomplice Teracom as a


merchant because of their earlier assossiation with Beetel and their solid
foundation. Consequently Teracom ought to feel free to grant its dissemination
rights to Sambhu Brothers in Delhi.

Submitted by: Surbhi Thkkar

ERP: 0191MIB036

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