個案資料

In January 2018, the regional manager of Fairdeal Appliances (Fairdeal) was deliberating the merits of continuing with a selective distribution strategy in Denpasar, Bali. Abdul Electronics, Denpasar’s biggest retail outlet for Fairdeal appliances, had just taken on a dealership for Technica, which was a strong competitor to Fairdeal. However, if Fairdeal responded by approaching additional retail outlets to carry its appliances, it risked an increase in intra-channel competition, which could result in less dealer motivation to sell Fairdeal appliances and an overall reduction in Fairdeal sales in Denpasar. The regional manager also knew that if Fairdeal did not increase its presence through additional retail outlets, it would likely continue to lose sales from Abdul Electronics, but would have no possibility of making up the shortfall. In future, other retailers who sold Fairdeal appliances might also become Technica dealers. Had Fairdeal’s selective distribution strategy run its course? Should Fairdeal open up the market and pursue an intensive distribution strategy? The entire market was waiting for a response from Fairdeal.

This case can be used in a graduate or postgraduate level course on sales and distribution, specifically when discussing dealer network management, sales optimization, or selective distribution. It can also be used in a basic marketing management course in a class on distribution network management. After the completion of the case, students will be able to do the following:<ul><li>Understand the conceptual drivers of selective distribution and intensive distribution.</li><li>Adapt a firm’s distribution strategy to changing market conditions, using specific quantitative and qualitative data.</li><li>Comprehend a dynamic equilibrium of sales volume of different brands in any dealer network.</li><li>Analyze the options available to different brands, as well as the consequences of those options.</li><li>Understand the likely impact on a brand’s sales, especially for a brand that relies on dealer push, when a major dealer decides to stock a rival brand.</li><li>Recommend options for reworking a brand’s network strategy.</li></ul>

• Selective Distribution Strategy, Retail Sales Maximization, Channel Management, Dealer Network Management