B2B Marketing SEM II

Internal Assignment
 Understanding of Case Study( case 13 )

COMPREHENSION

ALFA NETWORKS was incorporated in US in the year 1973 pioneered

the development of affordable networking solutions. In 1998, Sukesh
kumar marketing manager of Alfa Networks was seriously considering
how to overcome the problem of the existing distribution channel and
achieve the channel objectives by focusing on customer needs of
affective after sales and debugging service. He was considering the
options of continuing with the existing distributors but ensuring better
management of the channel members, setting up the company’s direct
sales and service offices, replacing the existing distributors with new
distributors or a combination of alternatives.
 Problem Statement

1)What should Sukesh Kumar do with the existing distribution channel

to achieve channel objectives?
2)How should the channel members be managed or administered
effectively?
 Solutions
Solutions to problem 1-
 Sukesh Kumar should monitor the current distribution channel.
 Alfa Networks should set margin standards for the distributors
because Alfa networks supplied integration equipment networks at a
much lower price but the distributors quoted much higher prices so
there is a need of setting margin standards.
 After sales service was rated poor because the time taken to send the
engineers was 2 days instead of that they should the customer’s
problem within 24 hours.
 The distributors should not give the lower version to save the costs,
Alfa Networks should look at it that provides the original hardware
and software support systems.
 Sukesh Kumar should sit together with the distributors and talk about
the marketing strategies to promote Alfa network.
Solutions to problem 2
 Channel members should be given monetary benefits, incentivize
distributors if the meet the targets.( service, sales)
 Targets should be designed weekly, monthly and yearly basis.
 Non monetary benefits can also be given such as global and national
tours.
 If the feedback is poor for any of the distributors necessary actions
could be taken.( cut down on the incentives)