Ingersoll-Rand (A): Managing Multiple Channels

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

Ingersoll Rand receives an A- for distribution policy management. Because of the company's large
product line and variety of sizes, it was difficult to choose the best channel for product sales and
marketing. R's problem is due to the country's recent creation of a 200 horsepower centrifugal
compressor. Compressors with this horsepower are frequently sold through a distributor network. This
is a centrifugal compressor, after all, and no centrifugal compressor has ever been marketed through a
distributor centre network. The duty is completed by the firm's direct sales force. Although the
distributor would appreciate the increase, the additional labour of training distributors on centrifugal
compressors is significant enough that the current experienced direct sales force team could market
them.

Customers may interact with several channel partners in certain instances due to multiple requirements,
which can result in inter channel competition and sales loss. The financial investment required to make
the air centres cost-effective is significant, and if they continue to build more centres, their independent
dealers will get discouraged. They don't compete with the independent distributors in the sale and
maintenance of equipment covered by the distribution agreement. It's a clear separation between what
should be offered directly and what should be marketed through partners.

Overall, we can infer that Rand's technique should be altered in order to better suit both parties'
interests. Current management policies must be changed to benefit all stakeholders. Then, and only
then, will unfairness be lessened for everyone.

Submitted by- Akula Padma Priya, PGP12101, sec B