Details

Case

Educator Copy

CHANNEL SUSTAINABILITY AT NUTRAWELL

Muhammad Luqman Awan, Muhammad Haroon Siddiqui (MBA 19), Azba Nawaz (MBA 20)


INDUSTRY : Food

AREA : Marketing

ORGANIZATION : Nutrawell

LENGTH : 15

LUMS No : 04-2375-2020-1

PUBLICATION YEAR : 2020

DESCRIPTION

KEYWORDS:

ROI, Distributors, sales, sales management, channel models


DESCRIPTION:

The case study exemplifies the typical relationship and challenges that principals and distributors share regularly and aims to provide students with a situation where the point-of-view of both parties can be witnessed. Nutrawell, a multinational consumer goods company based in Prague, Czech Republic, is facing strong backlash from three of its distributors in the Lahore region over the issue of low return on investment (ROI). The distributors demand an increase in the distribution margin to cover up for the decreasing ROI. The principal in this case, Nutrawell, claims the method of ROI calculation was flawed since the distributors failed to consider certain factors due to which the ROI should have been higher than that calculated by the distributors. Exploring the factors related to principals and distributors can help explain the events that led to the disagreements between Nutrawell and its distributors.


LEARNING OBJECTIVES:


SUBJECTS COVERED:

Marketing, Sales, Channel Management