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!!