Submitted by – Himanshu Goyal

PGP12247
 Ingersoll-Rand
Managing Multiple Channels: 1985
Stationary air compressor market-
Stationary air compressors provide compressed air for three main purposes: powering tools and other
machinery (plant air), powering and controlling pneumatic systems in certain types of equipment
(special machinery), and supplying air for certain manufacturing processes (process air). Industry
convention was to classify compressors by horsepower size: small (below 25 hp), medium (25 to 300 hp)
and large (above 300 hp) and by compression technology: reciprocating (recip), rotary screw (rotary),
and centrifugal.
Evolution of distribution channel for Ingersoll-Rand –

The company’s distribution channel has evolved on a very large extent over the period. In 1960 period,
sales happened only through direct sales force and distributors. In 1973 air centers were added in the
distribution channel and dimensions of the air compressors which were sold often changed during the
period. In 1984 the distribution channel was as follows-

Direct Sales Force

Distributors

Air Centers

Manufacturers’ Reps

For the sales of spare parts which were only sold by Ingersoll-Rand directly there was a shift to
bring in 19 distributors to accompany in sales.
Multiple channels- Problems and benefits-
Multiple channels created the problem of interchannel competition within the organization. To
reduce this Full Partner Program was introduced. Sales and market potential between SACD’s
independent distributors and its air centers was distributed ideally.

The distribution channel of Centac-200-

There was the dilemma with the VP sales and marketing to go with which channel of distribution. There
were both pros and cons in all channel of distribution.

Solution- The best channel of distribution for Centac-200 would be direct sales force because of well-
established service capabilities; a channel of distribution on which the company can rely because it is a
difficult technical product; spare parts requirements would be minimal for this product; and it was not
suitable for distributors because of this.