Case
PREMIUM DISTRIBUTION LIMITED: MANAGING GO-TO-MARKET CHALLENGES
INDUSTRY :-
AREA :MARKETING
ORGANIZATION :-
LENGTH :9
LUMS No :04-2378-2021-1
PUBLICATION YEAR : 2021
ABSTRACT:
Mr. Shahbaz Bhatti, Managing Director of Premium Distribution Limited (PDL) based in Lahore, Pakistan, was confronted with both tactical and strategic challenges. On the tactical front, he needed to address the demands of his principal, Talpur Tea Company Limited (TTC), to increase the size of DSFs (Distributors Sales Force). TTC believed that more DSFs were needed to better service retailers in PDL territory. TTC also wanted Shahbaz to reduce his dependence on wholesalers. Shahbaz had, over the last four years, increased DSF numbers from 14 to 17 and also brought down wholesale share of PDL sales from 50% to 25%. He believed that adding more DSFs and/or further reduction in his wholesaler contributions would seriously hurt his bottom-line. He needed to come up with a well-thought out response to TTCs demands. At a strategic level, distribution industry was getting impacted by two major forces. First, the increase in the number, sophistication, and service expectations, of local retail chains presented serious threat of disintermediation to distributors. Second, the growth of dynamic e-commerce players could also adversely impact distribution intermediaries. Shahbaz had to estimate long-term threats posed by these forces and chalk out his plans. (Approved 27-July-2021. Case with disguised numbers and company but the data and challenges are real)