Haan: A distribution decision

A company that manufactures and distributes hydroalcoholic gels, created right before COVID-19, present in 35 countries, must decide whether to change its distribution model. Initially, to profit from the surge in demand due to the pandemic, the company sold exclusively through intermediate distributors; three years after the pandemic, in 2023, and with the suspicion that distributors do not treat the brand well enough, the company owners are considering terminating some distribution contracts and sell directly to retailer in some countries.
The case raises the advantages and disadvantages of each model and questions what criteria should be considered to choose when to go with one model of distribution or another.
Collection: IESE (España)
Ref: ASN-108-E
Format: PDF
Number of pages: 10
Publication Date: Jul 4, 2025
Language: English

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Description

A company that manufactures and distributes hydroalcoholic gels, created right before COVID-19, present in 35 countries, must decide whether to change its distribution model. Initially, to profit from the surge in demand due to the pandemic, the company sold exclusively through intermediate distributors; three years after the pandemic, in 2023, and with the suspicion that distributors do not treat the brand well enough, the company owners are considering terminating some distribution contracts and sell directly to retailer in some countries.
The case raises the advantages and disadvantages of each model and questions what criteria should be considered to choose when to go with one model of distribution or another.
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Year: 2023
Geographic Setting: Spain
Industry Setting: Distribution, consumer goods, equipments and warehousing

Learning Objective

This case, where the descriptions of both models and their advantages and disadvantages are described in a non-structured way, is well suited to help participants find relevant criteria and prioritize these, under considerations of prudence, timeliness, and product value proposition. It is very suitable both as a team report (that forces participants to discuss among themselves and reach a consensus) or as a regular class discussion session.

Haan: A distribution decision

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"Haan: A distribution decision"