'Pyramid Door Formal Case Final Draft Essay\r'

'As a privately owned regional manufacturer of residential and commercial steel store doors, Pyramid Doors has managed to grow a distri providedion net profit in the Western and Southwestern United States of 350 electrical distributors garbled up into 300 non-exclusive dealers and 50 exclusive dealers. This schema has allowed Pyramid Door to capture a foodstuff sh atomic list 18 of 2.6% with total gross sales in 2005 of $9.2 million. eon executives agree that a growth in sales of 36% to $12.5 million is necessary to contact vital mass to preserve its buying position with suppliers, opinions are split on the correct method to achieve this goal. An increment in the merchandise budget of 20% over 2005’s budget has already been approved, but four alternative scenarios about how to handle the distributor base possess been brought up by mingled executives.\r\nWhile some executives favored dramatically increase the overall quash of dealers, others suggested the opposi te, cutting the overall number of non-exclusive, poorer performing dealers. Still other executives suggested a to a greater extent targeted approach, leaning on more exclusive dealers at the expense of fewer non-exclusive dealers, while a net group suggested maintaining the status quo of dealers and letting the new marketing strategy carry them to the required number of sales. To realize the best strategy moving forward, we have entrap together a proposal outlining the pros and cons of each strategy, approve up with qualitative and quantitative data to hazard up our conclusions.\r\nAlternative 1: Increase number of in restricted dealers in markets currently served by the alliance by 100 Pros:\r\nIncreases effective market reportage allowing customers to find Pyramid Doors at more dealers. Diversifies the diffusion network so that the company is less dependent on exclusive dealers. Sets Pyramid Door up for future distribution expansion.\r\nWill significantly increase sales.\r\ nAllow for market specific advertising to pull ahead more locations\r\nCons:\r\nAdding 100 distributors will be very(prenominal) difficult in one year, given it has taken 10 years to add the most new-made 50 distributors. Has the potential to cause channel passage of arms with current distributors by increasing the number of dealers they have to directly compete with within their markets. Distinct scuttle of product cannibalization by saturating the market. Even with the increase in Net Sales, this plan would require an increase in Sales Representatives, decreasing our profit margin. Increased raptus costs to distribute to more low-volume locations.\r\n'