Distribution Strategy

1359 WordsJul 24, 20126 Pages
Distribution Strategy (Group D _ Session 7 _ Assignment) San Fabian (SF) - MacDowell Philippines (MP) - Paulo Remita Incorporated (PR) Problem Statement After 19 years of an established “exclusive-distribution” agreement with San Fabian; MacDowell Philippines decided to terminate the deal. MacDowell Philippines decided to take over the Wholesale role of San Fabian (SF) and would participate directly in large Commercials as well as Government Projects. Accordingly MP (MacDowell Philippines) products line will be made available to Construction Supply dealers across Philippines. MP claimed to be forced to take that step to help increasing Sales since they experienced an operation capacity around 50%. Situation Analysis As…show more content…
Looking at the Market Share figures we would notice the following: Market Share | Pressure Pipes | Corrugated Sheets | Flat Sheets | MP | 15% | 10% | 5% | PR | 10% | 2% | 5% | Balance | 5% | 8% | 0% | So the above table shows two main points: * PR market share is still quite competitive to MP in two Products line * There is a room for growth for PR should they decide to go with SF as a replacement of MP So going back to the first paragraph in this “ Recommendation “ section; both SF & PR need each other. We do believe going that route would be the best option for both entities for the following
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