MARIWASA CERAMIC TILES MARKETING & SALES/DISTRIBUTION CHANNEL

1. Immediate Issue(s) or Problem(s):

 Immediate Problem: Mariwasa Ceramic Tiles is facing declining sales revenue, and
there is a need to address the current exclusive distribution strategy to overcome
market share competition.
 Decision: Decide whether to stick with the current exclusive distribution model or
explore new distributors to increase market reach.
 Time Frame: Given the urgency of declining sales in the 1990s, a decision should be
made within the next few months to implement changes promptly.

2. Basic Issue(s) or Associated Issue(s):

 Market Competition: The emergence of new importers and manufacturers is
contributing to a decline in Mariwasa's sales.
 Limited Distribution Reach: Relying on only three exclusive distributors might limit the
company's market reach.
 Personal and Familial Connections: Edison Co Seteng has familial ties with the owners
of the current exclusive distributors, raising concerns about potential repercussions for
them.

3. Issue(s) Analysis or Information Summary:

 Facts:
 Established in 1966, Mariwasa is a pioneer in the Philippine ceramic tile industry.
 Technical assistance from leading Italian firms in manufacturing.
 Three exclusive distributors with familial connections to Edison Co Seteng.
 Opinions/Assumptions:
 Market competition is affecting sales revenue.
 Opening up to new distributors might improve market reach.
 Exclusive distributors might be resistant to changes.

4. Alternative Solutions or Options:

 Option 1: Maintain Current Exclusive Distributors:
 Pros: Loyalty from existing distributors, maintains personal connections.
 Cons: Limited market reach, may not address declining sales.
 Option 2: Expand Exclusive Distributor Network:
 Pros: Increased market reach, potential for higher sales.
 Cons: Possible resistance from existing distributors, potential strain on personal
relationships.
 Option 3: Diversify Distribution Channels (Online/Offline):
 Pros: Taps into new markets, reduces dependence on exclusive distributors.
 Cons: Requires additional investment, may face resistance from traditional
distributors.

5. Recommendation(s) and Implementation:

 Recommendation: Mariwasa should pursue Option 2 by expanding its exclusive
distributor network to increase market reach while maintaining relationships with
existing distributors.
 Implementation:
1. Initiate discussions with current distributors, explaining the need for expansion.
2. Identify potential new exclusive distributors through market research.
3. Develop clear guidelines and agreements for new and existing distributors.
4. Monitor the performance of the expanded network over the next 6-12 months.

6. Monitor and Control:

 Regularly review sales performance and market reach against predefined targets.
 Conduct quarterly meetings with distributors to address concerns and gather feedback.
 Implement a feedback mechanism from customers to assess satisfaction with the new
distribution strategy.
 Regular financial reviews to evaluate the impact on sales revenue and profitability.
This approach ensures a strategic expansion of the distribution network while mitigating
potential risks associated with familial connections and existing distributor relationships.
Regular monitoring and feedback mechanisms will allow for adjustments if needed