Group #6

Sales and Distribution Management (SDM) Case StudyEICHER MOTORS
Presented by:
Dr. Amrendra Kumar J. Harish Shekharjyoti Talukdar Vijay K Tayal 26 NMP09 26 NMP25 26 NMP50 26 NMP57

CONTEXT  In the early Nineties. GOI opened up the Light Commercial Vehicle (LCV) Market and four new entrants came up     DCM tied up with Toyota Swaraj Motors tied up with Mazda Allwyn paired up with Nissan and Eicher Tractors paired up with Mitsubishi  Earlier. while Bajaj Temp and Mahindra and Mahindra dominated the lower segment of the Market  While Tata Motors dominated the North Market. Ashok Leyland ruled the South Market and both had a vast network of dealers . Tata Motors and Ashok Leyland were dominating in the Upper Segment of the Market.

Success factors A successful Product Launch Strategy A strong Brand name A well-connected dealership Network .

Eicher and Mitsubishi were all set to launch their LCVs in India and after delays in funding for their manufacturing plant. the tough got going for these existing players  It was a real challenge to get potential dealership parties who were interested in making heavy investments  Moreover.CONTEXT (CONTINUED)…  In this backdrop. they were all set to launch an updated version of their LCV  Eicher realized that the other three Indo-Japanese players were not doing that well  Sales were very sluggish for these players and when the going got tough. it was a humongous task to get a dealer who would agree to all the Terms and Conditions that any player would impose on the dealer .

DCM Toyota Allwtn Nissan Swaraj Mazda .

QUESTION #1 – PARAMETERS TO DESIGN DISTRIBUTION CHANNEL      Strong Brand Name of Eicher Motors Availability of a strong Network of established Dealership Supportive Vehicle Financiers for Consumers There should be no middle–men making money from Consumers and no RED-TAPISM Eicher should be prepared to spend on powerful Advertising Campaigns .

QUESTION #2 – APPROPRIATE CHANNEL STRUCTURE FOR EICHER MOTORS  Eicher Motors’ Factory  Company-Owned Depot  Dealer  Consumer  Reasons:  Eicher Motors can have tight control over their depots  Eicher can have a strong network of Dedicated Dealers who can Service them .

QUESTION #3 – PROBLEMS OF ATTRACTING SUITABLE CHANNEL MEMBERS     Tie up with established Dealers Have flexible Terms and Conditions with dealers Maintain stringent Exit Barriers for Dealers so that they don’t leave Eicher that easily Maintain a Policy of Higher Dealer Margins when compared to market rates – Keep Dealers happy .

QUESTION #4 – EVALUATION PARAMETERS FOR SELECTION OF CHANNEL MEMBERS  Trust-Worthiness of a Channel Partner  Credit-Worthiness of a Channel partner  Whether the Channel partner is an established entity. or not  Whether the Channel Partner will be suitable and will live up to the Terms and Conditions of Eicher Motors  Whether the Channel partner is flexible and open to Negotiations THANK YOU .