Yee Wo Plastic Piping Components Ltd Solve Problems Related to Distribution

Contents page•Executive summary•Main statements of sustainability issues•Conclusion•ReferencesExecutive summaryThis case study considered on the Yee Wo Plastic Piping components Ltd company that how implemented by their poorly performed distributers and products are been emerged among those smallest distributer channels. The company is subsidiary of a Taiwanese manufacture which based on multinational supplier of various range of civil and chemical engineering products such as plastic pumps, valves, fittings, pipes, and gauges. In fact, there many competitors within ASEAN regions, however, currently, there are five major manufactures are been competing to each other by similar products, although company owns 40 % of all markets in that area.

The main problem is that appeared by their poor developed distributers such as smaller and their insufficient sales which allowed to other cheapest negotiable subsidiary products are being replaced into the market. According to this conflict, Johnny Tan, who is sales manager in the Yee Wo Plastic Piping components Ltd, has been working through his company representatives’ and distributers’ to reorganize and solve these arising problems.

Sales force organisationThe sales manager must pay attention to the structure of their sales force and firstly, channel selection is much important for reach to targeted customer efficiently. Secondly, once have chosen channel that can be trough either product line or major customer segments, and finally, given this channels what salespeople you need and fit to those specific organization as a direct sales.

Distribution is recognized as stockists who should responsible to hold full range of the company’s products sales and ensure how completing its service to end users and persuade end users to specify the company’s products. Indeed, it wouldn’t applied into the distributers’ and they just working for the profit.

Some suggested strategy to reorganize sales forceAs a consequently, manager Johnny Tan can do redesign its company channel of choices and the proper distribution channels can identifies by their each year background information what has changed over time and which channels are efficiently on current product ranges. Also the firm’s distribution policy requirements are essential that help to select suitable distribution as a selective, exclusive and mass distribution. As this paper mentioned before that distributors are stockists who are selling your products behalf of the company and manufacture, so that reasonable to have good relationship to their distributors in order to maximize company profit and products sales.

Above aspects may drive manager to follow up redevelopments:•Sales force resize which customize targeted customer number, make own distribution policy•Evaluate the sales force performance and it may have differentiates by promotional support, competition. Measures can be qualities and quantities. For example, qualities are referred by distributors’ basic knowledge about their selling products, related intelligence, patience and enthusiasm, motivation, ambition and self organisation. Quantities are including sales volume, new orders and amount of market intelligence gathered to forecast sales.

•Remuneration of distributors’ which essentially reflect by their salary plus commission as a bonus and so on.

• For the case of direct sale, recruitment and selection of salespeople which is most difficult task, as long as, that person should fit company job description, objectives and responsible to protect and promote company image while gathering successfully end users.

•Direct sales is most efficient way to handle all process and plays major role to maximize the company product sales.

Johnny Tan’s suggested implicationsJohnny Tan’s suggested implications are include restrict supplies to licensed distributors only; persuade their representatives to concentrate more upon the productive market sector; and sell directly and cut off their distributers.

Firstly, cut insufficient distributors and eliminate by only licensed and legally permitted distributers mean that the company and goods’ performance are interpreted well and attract more customers even though this time much more requires legally authorized one. So that, the Distribution Agreement checklists can be useful to fulfill the information if that distribution is legally permitted and it will direct to create own distribution policy which identifies performance, territory, delivery, advertising, and customer services all about company and its product differentiations.

Secondly, certain customer characteristics intend to contact company direct sales person while others prefer independent sales organisation. However, it depends on the company various product ranges, for example, heterogeneous products which can be more easily differentiated, such as biotech, chemical plants and tend to a direct company sales force. Moreover, if the manager require tight control over pricing and limited customer selection, or need feedback and good communication from the field, a company direct sales force will better satisfy these needs. As a result, to build up new division which sell directly from manufacture to customer, will be more advantages to both side and it save costs and reliable to contact directly to their sufficient clients even though innovative and self organisation combination will bring achieve to goal and further productive ideas.

Finally, it is all about distributions and representatives basic sales skills and knowledge how to promote sale as a reliable and productivity. In this case, distributers are calling less popular lines at very short notice which not allow them time to supply the company. So for this case, those distributors haven’t got enough information how company supply chain works, how many days it takes to reach end users and what they should do in order to keep customer satisfaction. As mentioned earlier, salespeople have to have intelligence to forecast their sales and should consider asking their key customers to assume their purchases and what they may need in the future.

ConclusionThe Yee Wo Plastic Piping components Ltd Company is well known in ASEAN regions and the second biggest supplier of the civil and chemical products. In this case, company has faced to their distribution channels conflict which is related to their lack of performance and wouldn’t enough respond their customer needs which are not sufficient making order such as very short notice and sales is imbalanced, there are many subsidiary that replaced by their cheaper products. However, according to the sales manager of this company who is called Johnny Tan that his attitude and purpose which reorganize its company distribution selection, organisation and direct sales are all sufficient ideas also I have written some other possible ideas may help to redesign its.

References

Calvin, Robert J., 2001. Sales Management 1st ed. United States of America: The McGraw-Hill Companies.

Lancaster, G. Reynolds, P., 2002. Marketing: Made Simple 2nd ed. Great Britain: Butterworth- Heinemann.

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