Assignment - Session 2

( Ingersoll-Rand (A): Managing Multiple Channels )

1. What grade (B-, B, B+, A-, A, A+) would you give Ingersoll-Rand for its management of distribution
policy? Why?

After extensively analysing Ingersoll-distribution Rand's strategy, I'd like to give it an A. The
following are the justifications for granting this grade:

Positives in Strategy:

● The sales division for direct sales managers, distributors, air centres, and manufacturer's
representatives was developed extremely strategically in terms of the capacity of compressors
that each of these channels can easily handle
● Separating various air compressors for different distribution channels aided the firm in
obtaining economies of scale in each channel by focusing on a few specific types of
compressors rather than all of them
● Due to the availability of many channels, technical and customer care assistance was
well-planned, assisting the organisation in sustaining a loyal customer base
● By including distributors and air centres in the sale of compressors, the firm was able to
expand the reach of its goods while also protecting the direct sales team from becoming
overworked

Negatives in Strategy:

● Inter-channel rivalry for the company's air compressors was causing market cannibalization
● One channel's faults were impacting the image and sales of another channel
● There was no consistency in pricing or sales technique, which might harm the company's
reputation in the long term if the price discrepancy is noticed by the same customers across
numerous channels

So, after going through all the positives and negatives, I'd like to give it an A

Prepared By:
Mansi Mundhra (PGP12014)