Issue 3 : Selection of Dealers

The company targeted the new generation of dealer initially as it believed that young dealers will be more receptive to the idea and will be flexible to making changes in their business models. As dealers were not aware about the companys rationale for choosing a select set of dealers , the dealer selection criteria was open to criticism.

Criteria for selecting the dealers.

1. Dealer should be selected based on qualitative factors. i.e willingness to change the current business plan , willingness to abide by the company rules, keeping the image of the company intact. 2. Dealer should be selected based on quantitative factors i.e financial status, infrastructure, location in the market, market coverage capability, ability to use MIS. 3. Dealers should be selected based on recommendation by the sales force based on the relationships established between salesforce and dealers Recommendation: Both the qualitative and quantitative factors should be used to select a dealer. Only those dealers should be selected who show willingness to change the existing business model and those who are ready to abide by the rules of the company. There should be exclusivity. They should not run parallel outlets and sell competitors product. So, even sales force recommendation is must regarding the trustworthiness of a dealer. All the quantitative factors like financial status, infrastructure, and location, Market coverage capability and ability to use MIS are instrumental in company achieving its target.