Strategic Brand Management Yogesh Bansal

ASSIGNMENT- 2 121/2018

Heliflex cables Ltd. is a manufacturer of electrical cables used for the electrification of
houses and other buildings. Market of electric cables are very competitive; more than 10 well
established players are present in the market with providing good quality of products.
Heliflex cables Ltd. distributes its product through a network of electrical distributor and
electrical retail shops & most of the distributors have affiliations from other brands also and
as we know all players are provide good quality products so distribution channel partner
played a great role in influencing the buying behaviour of the customer. Various market
players had started the policy of credit giving to retailer. On the other hand, due to the
limitation of resources Heliflex wont able to provide the credit policy, but after discussion
they launch a new credit scheme for the distributors, under which distributors will billed at
two rates. The first is existing one which is 15% less than the list price. the second new rate
of 16% Less than the list price. If the dealer is availing the second option, in that case dealer
need to provide the credit facility to the retailer for at least for two weeks.
While discussing the scheme with distributor marketing manager observe various pattern in
their reaction after heating the scheme, Now the marketing manager would try to use
different possible strategies to successfully implement the new scheme

Strategies That Can Be Used in Observed Pattern -1

As in the pattern 1 manager observed that distributor’s feel very happy after listening to the
scheme and placed a large purchase order under the new scheme, they also confident enough
that it would best encounter the competitor’s in the market, after seeing the trust they shows
in the scheme, marketing manager decided to give the letter of thanks to the channel partner
from the marketing director and also decide to give a form of financial reward for
participating in the program.

Strategies That Can Be Used in Observed Pattern -2

In this pattern the marketing manager would like to discuss general business issues with them
as they feel that credit facility service was not the only reason that competitors were gaining
market share, manager would also focused on the results of the other channel member who
opt for this strategy to give the confidence to the other channel member. Marketing manager
would also give a form of financial reward as they gave a purchasing order under the new
scheme.

Strategies That Can Be Used in Observed Pattern -3

Under this situation where distributors were totally pessimistic about the scheme, the
manager would try to show them the results from some other organization who opt for this
scheme to manipulate their point of view, and also give them a form of financial reward as
they order under the new scheme, as company decide to give the financial reward to those
who initially placed purchase order under this scheme. As this financial reward would
motivate them to regularly opt for this scheme.

Strategies That Can Be Used in Observed Pattern -4

Under this scenario the distributor reaction sees quite supportive for the new scheme, plus
they also agreed on the fact that non-availability of the credit policy was the main reason for
the stagnant sales & number are not increasing .But they still order according to the old
scheme, in this case the marketing manager need to realize the channel partner that not opting
the new scheme would lead to the non-attainment of the goal and reaction of the retailers not
very favourable and also company can make promise if the channel partner abide that policy
now , in future the company would return the favour in some kind.

Strategies That Can Be Used in Observed Pattern -5

Under this pattern the channel partner doesn’t show much interest in the policy & order the
purchase order under the old scheme. In this case the manager needs to realise the channel
partner that the participation in a channel program is a channel norm and every channel
partner need to follow that. Particular partner can’t oppose or ignore any company
programme without testing the feasibility in the market.

Strategies That Can Be Used in Observed Pattern -6

In this pattern what the channel partners said were correct that only credit policy program
doesn’t enough to increase the market share, product also doesn’t need to improve. But that
doesn’t mean that channel partner opposes all other policy who can marginally improve the
performance. So, in these cases the manager need to clearly tell the channel that non-
participating in the program is against the channel norm and financial penalty would impose
on the channel partner on non-participating in the program.