Heliflex Cables Case

Submitted by:
Ravi Raj Rana 094/2018

Case summary
Heliflex Cables is Ludhiana based manufacturer of electrical cable.
There is intense competition in the market for cables and several companies have started
extending credit to retailers.
To garner market share Heliflex has come up with following new scheme as per which
distributor will be billed at two rates.

 Distributor to be billed at existing rate of 15% less than the list price.
 Distributor to be billed at 16% less than the list price and the dealer to extend two weeks
credit to retailer.
Among the distributor responses, 6 types of behavior patterns emerged and marketing manager
was thinking what type of influence strategy out of the given 13 strategies should be used. As
per the Attitude Behaviour Framework the following solutions can be concurred for each given
pattern:

Solution:

 Pattern 1: The distributors have expressed total acceptance of scheme company and placed
reasonably large purchase order as per the new rates. They are positive towards channel
program and show acceptance.
Strategy suggested: Strategy 8 of sending letter of thanks from MD will help in further
reinforcement.
Rationale: We just need to follow the reinforcement process wherein behavior and
psychological reinforcement is required. We just need to discuss general business issues with
the distributor principal which touches upon the issue concerned as said in the case.

 Pattern 2: The distributors are not confident of the channel program but they accept give
purchase order under new scheme. They are neutral towards channel program but show
acceptance.
Strategy suggested: We need to follow strategy number 2 & 8 as mentioned in the case.
Rationale: We need to follow moderate rationalization process which requires attitude
change. Confidence boosting measures & communication for removing any doubts about
effectiveness is required.
 Pattern 3: These are the distributors whose attitude is pessimistic towards the channel
program but gave the purchase order under new scheme. They are negative towards channel
program but show acceptance.
Strategy suggested: Strategy no 3 can be helpful here.
Rationale: Heliflex need to follow radical rationalization process and change their attitude. It
is to be made clear to these distributors that non-participation in the program could lead to
non-attainment of its goals as reaction of the retailers would not be very favorable so that
they keep on ordering on the new terms.

 Pattern 4: The distributors are positive towards channel program but show rejection. They
have issued purchase order under old schemes only.
Strategy suggested: Such distributors needed to be induced and strategy no 11 of promise
made for favor in future can hasten the process of inducement.
Rationale: Heliflex’s promise of a favor is needed to get these distributors onboard as they
are supportive of the scheme but their financial constraint has prevented them from giving
credit to the retailers.

 Pattern 5: These distributors are not sure about the channel program and not issued purchase
order under new scheme. They are neutral towards channel program but show rejection.
Strategy suggested: Strategy no 6 & 9 will be helpful in this case.
Rationale: They may be communicated that participation in channel program is a channel
norm. Heliflex can also think of imposing a form of financial penalty for non-participation.

 Pattern 6: They are negative towards channel program and show rejection. They are totally
against the scheme and dont agree to participate in it
Strategy suggested: First strategy no 13 & then no 12 can be adopted for such dealers.
Rationale: Heliflex needs to follow radical confrontation. Such distributors needs to be
communicated in no uncertain terms to face dire consequences if they don’t abide by the
company.