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Problems & Issues
Situation Analysis
In the 150 markets served by Palladium Door, Inc., there ar approximately 3,002 independent garage door dealers, with estimated yearly gross gross sales of $348.5 one thousand million in 2003. canvass this to Palladiums estimated 2003 sales of $9.2 million, its clear that Palladium Door has a very small share of their market, alone 2.64 per centum. In fact, their share of market in independent garage dealers altogether is quite smaller than 2.64 percent. Since 70 percent of sales come from their 50 exclusive dealers, Palladium Door solely sells approximately $2.76 million a year in their cardinal hundred independent retailers. Their market share in these independent retailers is only .79%. Their average sales in the exclusive dealers of Palladium Doors are over 14 times that of their independent retailers. picture vermiform process 1.
In order to make their 36 percent sales add-on from 2003 to 2004, Palladium will need to earn an unnecessary $3.3 million in sales, making their sales goal $12.5 million for 2004. Palladium will need to add new dealers, plan their current marketing channel, or drop some of their slight profitable dealers to help attain this goal. Currently, Palladium has an average of three independent retailers and one exclusive retailer per market they serve. See Appendix 2.
Analysis of Major Alternatives
The companys premier decision is to determine whether adding more(prenominal) independent retailers will be able to make up the extra 36 percent of sales forecasted. The advantages and disadvantages of adding more independent retailers can be be as follows:
* Advantages
* The company can achieve a more intensive distribution by adding more retailers, which would help increase market coverage and sales.
* By being offered in extra locations, brand awareness would increase, thus increasing future opportunities for growth.
* Disadvantage
* Because of the public exposure of their product...If you want to get a full essay, order it on our website: Orderessay
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