An Irate Distributor: The Question of Profitability

Case Solution

Renuka Kamath, K. K. Kishore, Sagar Sharma
Ivey Publishing ()

In June 2012, an area sales manager for NutriPack India, a multinational company specializing in fast-moving consumer products, needed to find a way to build on the success of its predecessor in increasing retail coverage in central Maharashtra. . He examined the area data and identified the Jalgaon region with high growth potential. However, the Jalgaon retailer was upset that it had increased its activities in the previous year and was not convinced that it was profitable. The area sales manager had to convince this distributor of the benefits of his past investments and also convince him to make more investments (for example, hire more salespeople). This case illustrates the challenges young area sales managers face when dealing with experienced distributors in Indian retail, especially in smaller cities where relationships can severely affect business. Students gain an understanding of key performance indicators necessary to focus on developmental problems in an area. You will appreciate financial considerations as an important tool when dealing with intermediaries such as distributors and you will gain practical knowledge to convince a distributor of your previous investments and profitability and pave the way for future investments to expand your retail business.

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