Bulk Deal in Bagri Market

Abstract

The case highlights the challenges of using the wholesalers as an element of distribution network. The case discusses the evolution of distribution channel of luggage, primarily following selective distribution strategy. The decision making focus is about the nature of actions the Branch Manager could take to control the very powerful dealers located in major wholesale market.

These wholesale dealers had high turnover from retail and wholesale business. They traditionally enjoyed high discounts and credit which was used by them for price cutting. Their activities disturbed the rest of distribution channel of Aristocrat as well as all other competitors and prevented growth of the rest of the distribution channel. These dealers enjoyed enormous bargaining power and were known to throw tantrum and hold the branch sales to ransom by not giving order till the end of the month and then negotiating hard. The situation had reached such an impasse that the Branch Manager and sales officers were rendered ineffective in managing the sales.