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Palladium Garage Door Case Study

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Dennis Vourderis 11/27/12 Palladium Garage doors Case Study

Problem Definition: Palladium Door, Inc. wants to increase 2003 sales by 36% in 2004. There is concern whether the current distribution strategy used by Palladium would be adequate to achieve the goal. Although Palladium's growth has been steady over the past 10 years the market share was only at 2.6%. The firm's senior executives were firmly believed they justified this lofty sales goal because they had to attain a larger sales volume to preserve its buying position with suppliers. Palladium, during its growth, has exceeded the industry growth. There are three new plans on how to reach the goal. There are four different viewpoints on the marketing decision. …show more content…

Several executives did not want to change either the distribution strategy or the dealers, but rather look internally on how to do a better job with the current distribution channel.

Recommendations: It would seem very favorable for Palladium to implement alternative 2 of developing the franchise program. The addition of 27 exclusive dealers would definitely increase sales and out of the 3 alternatives, it provides the least increase in cost and/or the largest increase in sales. So in order for Hawly to meet his goal of $12.5 million With the exclusive dealers in place they can improve the brand image also. By adding the 20% budget they can increase the very low awareness of prospective garage door buyers(10%). By having exclusive dealers, Palladium will be on the forefront in certain markets and aggressively start to build up sales to reach the goal of 12.5

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