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SALES AND DISTRIBUTION MANAGEMENT

CASE STUDY (ALFA NETWORKS)

By:Roll No: Abinash Kumar Nayak (1225110202) Ravi Teja (1225110258) Pratap kumar (1225110239) MBA Section B Final Year

1. What are the main issue/ problem/ opportunity?

The main issue of this case is acting on the problems faced by Alfa Networks in the distribution and channel maintenance front. Alfa Networks have set their priority to focus on the addressal of customer needs and effective after sales and debugging services. 2. Why is the issue important? This is the main issue because the results of the market survey that was conducted by Alfa Networks to identify the effectiveness of the distributors gave a very negative picture. Most of the customers were very unhappy with the after sales and debugging services provided by the distributors. On top of that the distributers were not only selling lower version of the software to save costs but also at a higher rate than the competitors. The distributors were also keen on selling their own products rather than Alfas products. 3. What are the controllable or uncontrollable factors? Controllable factors: Distribution strategy Technology Distribution channels Quality of service/product. Uncontrollable factors:

Response from customers Competitors strategies. Customers requirements Demand-Supply equilibrium External Environmental factors Legal framework

4. Who are the interested parties in the issue and why?

The interested parties in this issue are: Sukesh Kumar, Marketing Manager, Alfa Networks Distributers Costumers/corporate clients Competitors

5. What alternative approaches can be taken to address the issue? The various alternative approaches that can be adopted to address this issue are as follows Sukesh can completely overhaul the distribution channel by replacing current players in the distribution networks and bringing in new distributers that would perform more effectively He could retain the existing distributers and provide them with better motivational incentives to perform better so that they market the brand Alfa Networks more than their competitors. He can also look into new and evolving distribution channels which might give him a competitive advantage and build on

the lead it has gained from its closest competitor, i.e. Motorola.

6. What objectives, policies, strategies, tactics and actions would be taken with each? The first strategy would require a huge capital input since finding new distributers who would be loyal to Alfa Networks is a tough task. Technical expertise of the new distributers is also a key element. The second strategy is more feasible in terms of investment of time and money but may fail if the incentives provided to the existing distributers dont appeal to their motivation to promote Alfa brand more that their own brand. Hence the organization has to do a lot of homework before designing the incentive module for these distributers. The third strategy requires a lot of market research to understand and evaluate the upcoming marketing trends to come up with a suitable channel. This again would require a lot of R&D investment.

7. What are the potential effects in sales and profits and the likelihood of those occurrences? Implementation of the above mentioned strategies would lead to a better, smoother and most importantly more customer centric

distribution channel. This way the organization can achieve its objective of fulfilling customer needs effectively. 8. Choose one of the alternatives and why is that the best? The best alternative would be to retain the existing distributers and provide them with better motivational incentives to perform better so that they market the brand Alfa Networks more than their competitors. The reason for this is the existing players know the specifications of the products that Alfa has to offer and on top of that networking business requires a lot of technical knowhow which the current distributers have. Another advantage that this strategy has is that customers were highly satisfied with the software and hardware support systems, the distributers were providing which creates a question that would the new distributers, if employed, would be able to deliver on the same level as the existing ones in this front. 9. What are the future implications on the interested parties if your recommendation is implemented? Implementation of the above mentioned strategies would help Sukesh Kumar, Marketing Manager of Alfa Networks to achieve the company objectives of satisfying customer needs and streamlining the distribution networks by ironing out all the flaws. The distributers would receive better incentives than they are receiving now leading to effective brand building of Alfa. The competitors would have more to lose since the price advantage, they had due to ineffective distributors of Alfa wont exist anymore providing Alfa with a platform to build on their current market share.