Hindustan Engineering and Automotive Products Ltd.

Case Study –
Answers.

1. What strategy it should follow for the short term and long term so that at least 30%
of HEAP’s revenue come from exports?
Short Term Strategy
• Increase the company's market share in overseas markets through aggressive
marketing.
• To create an internal R&D and technology design.
• Build a solid marketing staff with the goal of having a sizable consumer base
(standardisation).
• Make the product stand out from the competition • Encourage the dealers to sell the
goods.
Long term Strategy
• Increasing margin to increase profitability.
• Having a good brand name
• Having solid consumer relationships.
• To build a reputation for quality and after-sales support.

2. Whether it should agree to sell it’s products under the distributors’ brand and what
impact this could have in the long run?

Decision should be taken looking all the positive and negative strategies with the
distributors.

Selling goods under distributor brands has the benefit of enabling the products to
reach a wider market. Distributors frequently have long-standing relationships with
their clients and may be more knowledgeable about regional markets. Selling under
their brand can also aid in boosting recognition and brand awareness.
However there are few possible drawbacks to take into account. Selling products
under a distributor's brand can weaken the manufacturer's brand identity and make it
harder for it to stand out from rivals. Additionally, it may lessen the manufacturer's
ability to influence how the product is advertised and presented to consumers. Selling
products under distributors' trademarks will have a long-term effect based on a
number of variables, including the manufacturer's overall strategy and aims, the level
of market competition, and the degree of control the manufacturer has over the
branding and marketing of the product. Before making a choice, it is crucial to
carefully consider these factors and weigh the advantages and disadvantages that may
be present.
So I think they should not agree to sell it’s products under the distributors’ brand
3. What channels of distribution they should use? Should they be the same in all
markets?
In general, Hindustan Engineering and Automotive Product Ltd might think about
utilising a variety of distribution channels, such as direct sales, wholesalers,
distributors, retailers, and e-commerce platforms. For industrial products, direct
sales and distributors might be a better fit, whereas retailers and e-commerce
platforms might work better for consumer products.

The means of distribution, however, might not be the same in every market. The
business should take into account factors specific to the local market, such as the
degree of competition, the infrastructure for distribution, and client preferences. For
instance, traditional retail channels may be more common in some markets while
online sales may be more common in others.

To find the best distribution channels in each market and to modify its distribution
strategy as necessary, Hindustan Engineering and Automotive Product Ltd must
perform market research. In order to make sure that its distribution channels are
successful in connecting with its target market and helping the company attain its
objectives, it is also important for the company to periodically monitor and assess
their effectiveness.

Submitted By -Bethmi Jayawardena

Roll no – 22206081 (MBA – ABM)
Section - B