Videocon Case Study

676 Words Apr 4th, 2015 3 Pages
Case Study
Of
Videocon International Ltd.

Presented by:-
Piyush Kumar
PGDM1400078
Sec-“B”
CASE FACTS

* In this case Mr. Sanjay Nigam has been recently appointed as area sales manager in Videocon International Ltd. * Mr Nigam has to allocate quota among his five divisional managers. He has to decide equitable allocation of that quota. His incentives are also dependent on achievement of the allocated quota. * Mr. Sanjay was heading the refrigerator business for Videocon and then he was given the responsibly of managing the sales in the area covering different states in south India. * Videocon ltd. is the manufacturer of consumer electronic products like Colour TV,
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Some companies appoint Direct Dealers who act as their Franchisee Outlets or their Exclusive showroom. Figure 10: DISTRIBUTION CHANNELS

2. In this channel of distribution the company appoints distributors on the basis of District/ Population /No of Dealers to be handled by one distributor. The area of operation and its potential is also taken into consideration.
Some of the companies make the distributor totally responsible from appointing the dealers to providing after sales service.

Figure 11: DISTRIBUTION CHANNELS

3. In this channel of distribution the company appoints Distributors as well as Direct Dealers. The company appoints distributors to deal with small dealers who order small quantities. With the dealers who have good potential and sales the company deals directly. The Korean Multinational follow this channel where they appoint Distributors for upcountry towns and direct dealers for big cities and major towns e.g. Ahmadabad.

Figure 12: DISTRIBUTION CHANNELS

4. In this channel the company appoints a C&F agent who acts on behalf of the company. The C&F agent is totally responsible for appointment of Distributors and Direct Dealers. He sells to both the Distributors and the Direct Dealers at the same rates.

Figure 13: DISTRIBUTION CHANNELS

Q- How should he proceed?
Ans: - Looking at the present scenario of

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