Manik Distribution Agency: An Existential Challenge

Mr. Dharamdas Desai was running a distribution agency in Madhopura, a town in the state of Madhya Pradesh, India. He asked his son, Paresh, to analyze the business’s financial situation. Paresh found that the business’s post COVID compound annual growth rate was around 4 per cent and the operating profits had also declined. Paresh looked at the business situation and wanted to revamp the business strategically. Paresh came out with three alternatives to revive their business, Manik Distribution Agency: diversify into new product categories distribution; adopt a hybrid model (distribution and retailing of the products); and enter into the digital/e-commerce market. Paresh wanted to keep the business, so he needed further clarification.

Collection: Ivey Business School (Canada)
Ref: IVEY-W33392-E
Format: PDF
Number of pages: 11
Publication Date: Nov 15, 2023
Language: English

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Description

Mr. Dharamdas Desai was running a distribution agency in Madhopura, a town in the state of Madhya Pradesh, India. He asked his son, Paresh, to analyze the business’s financial situation. Paresh found that the business’s post COVID compound annual growth rate was around 4 per cent and the operating profits had also declined. Paresh looked at the business situation and wanted to revamp the business strategically. Paresh came out with three alternatives to revive their business, Manik Distribution Agency: diversify into new product categories distribution; adopt a hybrid model (distribution and retailing of the products); and enter into the digital/e-commerce market. Paresh wanted to keep the business, so he needed further clarification.
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Year: 2022
Geographic Setting: India
Industry Setting: Retail Trade

Learning Objective

This case can be used in a core marketing course to discuss distribution, with a particular focus on the distribution of fast-moving consumer goods; a sales and distribution management course and channel management; an executive or specialized programs to discuss challenges faced by small businesses or entrepreneurs in traditional distribution businesses in a highly competitive market; or a session on rural marketing course to start a conversation on emerging trends in the rural distribution landscape. After working through the case and assignment questions, students will be able to understand the impact of digital transformation on fast-moving consumer goods distribution in an emerging market like India; appreciate the channel power and assess the channel conflict in managing a distribution firm; comprehend the emerging challenges in managing a distribution firm; and recommend alternatives to work the distribution business in the digital environment.

Manik Distribution Agency: An Existential Challenge

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"Manik Distribution Agency: An Existential Challenge"