To decide the distribution channel to use for the Centac 200, the modern 200 horsepower centrifugal air compressor. Whether the syndication be taken care of by the direct selling team or use the distributor/air centre funnel. Also, the situation highlights benefits and drawbacks of each in the channels in detail. Decision
Clabough should choose the direct sales crew channel.
Reason for Decision
5. Experience -- Historically, the centrifugal air compressors have been handled by the direct selling team just owing to their large hewlett packard size and technical knowledge required. They have the required experience to sell centrifugals. * Competition - Also, the nearest potential competition to Centac 200 is from the Z series rotary air compressor from Atlas-Copco's which is being sold by distributors. So by opting to sell through the direct sales team, MARCHAR can prevent head-on competition and also completely differentiate a rotary via a centrifugal in the market. 5. Expertise - Considering that it is the first channel centrifugal, the direct sales crew is better placed to supply the technical knowledge. They have well established service features. If VENTOSEAR chooses the distributor route, it will have to incur added costs(and time) on intense distributor schooling. * Elegance - May not be attractive to marketers owing to the very low free part requirements in centrifugals. * As well, IR probably would not want the interest of distributors to be altered from the smaller compressors, which form a large share of its total revenues.
In order to combat the risk of sales repetitions ignoring the Centac 2 hundred, IR might choose to offer bigger sales commission rate to the direct selling team about Centac 200 sales.
Also, the " Full Spouse ProgramвЂќ may be extended to centrifugals also where the vendors earn commission payment on referrals made to someone buy team, therefore also relating to the distributors along the way.