SUBMITTED BYGROUP 13

Arjun MehraMurugappan O

Nipun GoyalSaumya Sinha

Siddharth P. Bijlani

Kelsey Manufacturing Company– Middleman to

promote manufacturer’s product

Issues

Stagnant sales• Sales volume had remained at about the same

level for 8 years

Poor communication• Very high number of products• Lengthy channel of distribution

Confusion reg. benefits• Increased products led to confusion at retailer

(customer) level regarding the benefits of each product

Repair tire market

Technological advancements

– Less tire trouble

Increase in no. of vehicles and miles traveled

per vehicle

I s i t a S tagnant Market?

Closer look at last 8 years sales

Sales has been declining overall in value terms

Taking inflation (avg inflation during the period – 2.5 %) into account, the volume has been declining year on year

Why has the Company not taken any action apart from introducing more product line in 8 years?

Year Sales % change1995 22,945,000 -1996 20,680,000 -9.8714316841997 20,140,000 -2.6112185691998 21,420,000 6.355511421999 21,040,000 -1.7740429512000 20,290,000 -3.5646387832001 20,750,000 2.2671266632002 21,025,000 1.3253012052003 19,990,000 -4.922711058

Distribution channel

Service stations

Little Knowledge about the benefits of Kelsey’s products

Wholesale distributors

Manufacturer’s representatives (Agents)

Handled kelsey products exclusively in the past

No growth in sales – Handled other automotive lines – Decreasing time to

communicate

Low ROI owing to large product line

Kelsey

Recommendations

•Makes communication better

•Reduces confusion among retailers

•Better ROI for Agents

Reduce product range

•Focus on high and medium selling products for promotions, etc

•Discontinue junk products from the portfolio

Focus on selected products

•Increase territory size of Agents to compensate for stagnant growth

•Regain the loyalty and make them exclusive dealers

Increase territory size

Thank You

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