SUPOR: How to

resolve channel
conflict
 Case Summary
Supor’s history and
Chinese Sanitary
its entry to sanitary
Ware Industry Channel Conflict
ware industry
1 3 5

2 4

High Competition in Supor Sanitary Ware

the industry Co. Ltd

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 Question 1
Which marketing channels does the
sanitaryware industry have? What are the
strength and weakness of each channel?
 Marketing Channels

▫ Brand agent and distributors

▫ Self built direct sales stores
▫ Home Décor and public décor channels
▫ Shopping mall and supermarkets
▫ E-commerce channels

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 Brand Agent and Distributors

Strengths Weakness
Know how of managing these Negative impact on the brand
channels historically image
Better control over distribution
Agents motivated to sell because of
incentivization of sales
Easy Market expansion
Provision of services

5
 Self built direct sales stores

Strengths Weakness
Service Quality Consumes a lot of Manpower

Brand Image Material resources and financial

resources

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 Home Décor and Public Décor channels

Strengths Weakness
Sales Volumes Longer Credit Period

Brand Image improvement Narrow Target Audiences

Co-operative relationships

Focus consumer groups

7
 Shopping malls and Supermarkets

Strengths Weakness
One large customer base Customer purchases of sanitary
ware products from these places
were usually random
Experience in selling different
products

8
 E-commerce channels

Strengths Weakness
Higher chunk of market High cost
Brand Awareness Customer experience
Ease of access Price comparison
Access to consumer data Extra efforts on logistics and
management

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 Question 2
What kind of ecommerce channel modes
could the traditional manufacturing
industry choose to establish?
 Business to Business

▫ The best possible e-commerce channel for traditional

manufacturing industry would be business-to-business
mode(B2B).
▫ 94% of B2B buyers already research online for purchasing
decisions.
▫ In e-commerce for manufacturing is complex compared to
simple online shopping carts seen in B2C e-commerce.

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 Benefits of E-commerce

▫ Provide your clients with a personalized catalog

▫ Sell your complete assortment online
▫ Let customers configure products online
▫ Ensure visibility for spare parts
▫ Attract new customers

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 Question 3
What was the major problem with Supor’s
marketing channels? What were the causes
of this problem?
 Marketing Channel Issues

High Quoted Reduced

Cost Price Prices

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 Reasons for these issues

Monopolies Low relevance

Reduction in online
Dissatisfaction
prices

Incomplete product
Low sales
range

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 Question 4
Why did Supor expect to realize the O2O
model? What are the benefits of
eliminating the channel conflict and
realizing the channel synergy?
Sanitary ware products focused
heavily on user experience.
Customers wanted to
experience them before they
bought them.

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 Resolving Conflict

Understandin Tracing the Understandin Strategy and

g nature and source of g the impact plan of action
intensity conflict of the conflict for resolution

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 Benefits of eliminating channel conflicts and realizing channel synergy:

1 Rapid Growth Potential

Access to offline shoppers 2

3 Customer Convenience

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 Benefits of eliminating channel conflicts and realizing channel synergy:

Less Variability
1
In Pricing

Quickly Finalised Orders. 2

Enhanced Ecommerce
3
Model

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 Thank you
Anubhav Sharma
Arjun Salvi
Krishnang Sharma
Rahul Jha
Siddhant Kodre
Shubham Agarwal
Vasudha Jhawar

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