MAXWELL CORPORATION
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Transcript of MAXWELL CORPORATION
CHANNEL MANAGEMENT
NAME Roll No.
JAYANT DESAI 17
MANISH SHARMA 18
MARSHALENE SIBLOON 19
MRIGANKA BHUYAN 20
NAVEEN SHARMA 21
PANKAJ JARIYAL 22
PRAJAKTA FULWADE 23
PRAKRATY BHATNAGAR 24
MAXWELL CORPORATION
•WELL KNOWN MANUFACTURER OF ORTHOPEDIC EQUIPMENTS
•SOLE MANUFACTURING SETUP AT VIZAG
•PRESENCE ACROSS THE COUNTRY•MARKETING BASED OUT OF
VISHAKAPATNAM•NEGLIGIBLE PROMOTION ACTIVITY•DISTRIBUTES PRODUCTS DIRECTLY TO
RETAILERS
DESIRED OBJECTIVES
•REVAMP DISTRIBUTION SYSTEM/NETWORK
•OVERHAUL THE MARKETING & SALES PARADIGM
•INCREASE BRAND EQUITY
•SUSTAINABLE PROFIT MAXIMIZATION
CHALLENGES: MAXWELL CORPORATION
• CURRENT DISTRIBUTION SYSTEM IS INEFFECTIVE
• LIMITED INVENTORIES WITH RETAILERS• MAJOR ISSUE WITH DEAD STOCKS• STOCKOUTS CREATING MAJOR CUSTOMER
DISSATISFACTION• UNABLE TO CATER TO EMERGENCY ORDERS• INVENTORY CRISIS DUE TO PRODUCT
VARIETY
TYPICAL DISTRIBUTION CHANNELS
QUESTION ONE
•Which of the options should the Company consider and why?
POSSIBLE OPTIONS
•Setting up of hub and spoke type of distribution network
•Setting up a central warehouse anywhere in Central India and feeding retail outlets from this location.
•Changing the distribution channel from the present numerous retail outlet systems to a more efficient system
•Outsourcing the entire distribution and logistics to a third party
Hub and spoke type of distribution network
MERITS•Efficient inventory management•Just in time delivery of products•Effective sales control•Works wonder when in economy of scale
DEMERITS•Rise in fixed & variable cost•Involves extensive management time
Central warehouse anywhere in Central India
MERITS•Centralized control
DEMERITS•No change from earlier model•Only location change•Lack of flexibility•Higher logistics costs to service entire
India
Present numerous retail outlet systems to a more efficient system
MERITS•Better focus on high volume retailers•Reduction in overhead costs
DEMERITS•Probable reduction in customer reach•Might slowdown organic growth•Loss of customer satisfaction
Outsourcing the entire distribution and logistics to a third party
MERITS•Focus on Manufacturing & Product
development•Cost reduction•Leverage the expertise of the outsources
vendor
DEMERITS•Loss of control•Not cost effective under large volume
sales
RECOMMENDED OPTION
•Setting up of hub and spoke type of distribution network wherein a stock point or mother warehouse is setup in each zone which caters to the needs of the retailers
QUESTION TWO
•What should be the distribution channel for Maxwell and outline the advantages and disadvantages for having such a type of set up.
DISTRIBUTION CHANNEL
•Distribution channel will remain the same i.e. Hub and Spoke model having various advantages as follows
▫Better alignment with Target Segments like Hospitals
▫Bulk purchasers like CGHS, Defense sector procurement, major healthcare / pharmacy chains
▫Zonal control over sales
Advantages (cont.)▫Much reduced inventory carrying cost
▫By centralizing control, the company can afford a smaller staff which concentrates on management from a central location
▫Faster response to emergency requirements / orders
QUESTION THREE
•What type of marketing and sales set up would you recommend for Maxwell Corporation and why
REVAMPED SALES & MARKETING STRATEGY
MARKETING STARTEGY
•STRESS ON THE 04TH “P” OF MARKETING MIX: PROMOTION
•THROUGH ADVERTISEMENS ON▫HEALTH MAGAZINES▫BILLBOARDS NEAR HOSPITALS,
PHARMACIES & CLINICS▫ON AMBULANCES
REVAMPED SALES & MARKETING STRATEGY
▫TIEUPS WITH MAJOR HOSPITAL & PHARMACY CHAINS
▫ENDORSEMENTS THROUGH STANDLONE DOCTORS AS WELL
▫TIEUP WITH HEALTH INSURANCE COMPANIES
REVAMPED SALES & MARKETING STRATEGY
SALES STARTEGY
• Mix use of both Pull & Push strategies
• Diversify & expand sales offices across the country
• Create a sales helpline (24X7 phone support)
• Use state of the art ERP & CRM applications
God Bless Maxwell Corp. & Of course
You all as well …Don’t meet with accidents & use our products!!!!
Vanishree Ma’am: Thanks for your Guidance!!