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AMERICAN TOOLWORKS

SYNDICATE 3

 NISA SEPTIANITA

ZAENAL

DIAN

HARRY 

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∗ ) &arge distri*utors have a vendor-managed inventory +!#agreement with T', not with midsie and small distri*utors

∗ ) /istri*utors not only sales T' products *ut also T'0scompetitor product

∗ ) Space is limited in T'∗ ) !any distri*utor and dealers choose T'0s product

*ecause of good name recognition, quality and sales support

∗ ) 123 of sales pre-speci4ed *y the *uyer and 523 steered*y the distri*utor0s sales force

∗ ) $ompetitors use several contract approaches to thedistri*utors and dealers to increase their pro4t and marketshare

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∗ merican Tool 'orks want to compete with other

competitors in small and midsie dealers in order toincrease their sales and market share.

6%&

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7uestion and nswer

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'hat can T' do to increase inventory atsmall and midsie dealers<

∗ R!nu "#ar$n% contract

∗ /ealers share some of its revenue with the T'./ealers transfer a portion of the revenue from eachT' product sold *ack to the T'. T' will providea discount on the wholesale price to the dealers.

∗ +This option will *e di=cult to *e implemented as itis not easy for T' to monitor revenue from many

small and mid-sie dealers

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∗ #n the e>isting process, dealers0 sales force

can steer 523 of sales *ased on...

'hat can T' do to increase salesat small and midsie dealers<

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'hy are T'0s competitors using thetwo approaches descri*e in the casewhen they deal with small and midsie

dealers<

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Should T' adopt theseapproaches<

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Should T' try di;erentapproaches< 'hat are the possi*le

approaches they should consider<

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