Ingersoll Case
Ingersoll Case
CRITICAL DECISION :
Whether Centac-200 should be distributed through IR sales force or through the distributor
network or air centers.
ISSUES
ISSUES DESCRIPTION
1 Spare parts Delay in spare parts delivery.
Competition from pirate parts vendors.
Loss of margins, market share & reputation
2 Commission Commissions to direct sales force of 1-3% on sales
of all complete compressors,,70% of sales person
compensation by commission income.
3 Rift between different Huge pressure from independent distributors for
distribution channels equal representation.
Company’s channels at times competed directly
with each other.
Each perceived the other received favoured
treatment.
4 Full Partner Program Indiscriminately passed commissions to each other,
company end up paying more commissions on same
level of sales.
5 Centac-200 competition Atlas-Copco gave a head to head competition in oil
free machine segment with its top quality & 30%
share of oil-free market.
PARAMETER FOR EVALUATION OF ALTERNATIVE DISTRIBUTION
CHANNELS
Centac-200 should be distributed through IR through the distributor network or air centres.
The company has taken responsibility for providing its independent distributors with a
product line that will yield a good ROI.
The penetration in the market can be better done by distributors and the air centres as
ATLAS has already captured 30% of oil free machine market.
This would also increase distributors long term relation with the company.
RECOMMENDATIONS
With any encounter with the technical issue with the product the distributor can refer
to the company.
Submitted by: