CASE STUDY : MAXWELL CORPORATION – DISTRIBUTION

SYSTEM:
The President of Maxwell Corporation was considering whether the Company
should set up its own distribution system or to outsource the entire distribution
and logistics functions to a third party service provider.
The Company had set up a manufacturing plant in Vizag where a wide range
of orthopedic equipments like the crutches, wheel chairs, heating pads, elastic
bandages etc. were manufactured. Presently, the finished goods warehouse
was located at Vizag itself and the products were sent to all major towns in
India as a point to point dispatch.
The Company was supplying these equipments directly to retail stores at all
locations. Marketing activity was headed by a general manager – marketing,
based at Vishakhapatnam who was supported by a sales team comprising of
sales officers. The company was not resorting to advertisement and publicity
though the products of the company were fairly well known. It was felt that all
the customers wanted quick responses to their orders as the products catered to
emergency patients. But, these retail outlets carried only limited inventories.
This was due to the fact that most of the products came in a variety of styles,
shapes and sizes and the requirement was more customer driven. Keeping
even a moderate inventory of all types was not economically viable and lead
to dead stocks in the long run. The company was looking at various options
which included the following: 1. Setting up of hub and spoke type of
distribution network wherein it was proposed to set up a stock point or mother
warehouse in each zone, east, west, south and north respective retail outlets
were to be fed from the mother warehouse located in that zone. 2. 2. Setting
up a central warehouse anywhere in Central India and feeding retail outlets
from this location. 3. Changing the distribution channel from the present retail
Outlet systems to more efficient system.

a) What type of marketing and sales setup would you recommend for Maxwell
Corporation ? (10 marks)
b) What should be the distribution channel for Maxwell and outline the
advantages for having such a type of set up ? (15 marks)
Or
a) Throw light on the marketing strategy ?
b) What new pricing strategy you would like to inculcate ?
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Q2.Section B consists of 10 questions by taking two questions from each unit. Each
question carries two marks. (10x2=20)

a) What is Local Market?

b) Define Environmental Scanning ?
c) Define Target Marketing?
d) Why is Market Segmentation required ?
e) What do you mean by Product Life Cycle ?
f) Define Brand Extention ?
g) What do you mean by Pricing ?
h) What is the meaning of Personal Selling ?
i) What is Ethics in Marketing ?
j) Define Pricing ?

Q3. Section C consists of 5 questions by taking one question from each unit. Each
question carries seven mark. ( 5x7=35)

a) Explain various Marketing Concepts.

Or
Write a note on the Marketing Environment.

b) Explain level of Marketing Segmentation.

Or
Explain Product Mix and Decision on Product Mix Level.

c) Describe various pricing strategies for new products?

Or
Write short note on Personal Selling

d) State different types of Channel of Distribution ?

Or
What do you mean by vertical marketing system ?

e) Write a short note on Consumer Behavior ?

Or
What is Globalization? Explain the role of Globalization for Indian business
?