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Eventually,
however, as sales volumes slid further, the client agreed.
Completing the project under considerable time pressure, we
discovered that:
• customer
attitudes and preferences had not changed,
• there
were competitive offerings, but as yet, there were no
direct clones yet in the market,
• manufacturing
standards for the actual product itself had not
changed.
However, we uncovered considerable distributor dissatisfaction
with our client. As a result, something of a quiet distributor
revolt was underway.
In an attempt to boost the sales of its less popular products,
our client's sales teams had independently selected a new strategy.
They decided to force distributors to take on specific amounts
of those less popular products for every new order of the popular
one. Distributors' store rooms were therefore, brimming over
with the unsold products.
The sales force wouldn't budge on this new condition so the
distributors, within their margins, did the only thing they
could. They began to order less and less of the popular product.
This meant they would not have to take on extra quantities of
the unpopular ones too. Thus, they reduced the impact on storage
space and their own costs |
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