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Sales & Distribution Case Analysis Uniglobe
Sales & Distribution Case Analysis Uniglobe
Sales & Distribution Case Analysis Uniglobe
Case Analysis
Uniglobe’s Small Local Stores
Dilemma
PRESENTED BY GROUP 7
B Sanjay Kumar 230102098
Divij Chawla 230101070
Kinjal Khandelwal 230103105
Parv Mittal 230101142
Rishi Gupta 230103168
Sakshi Singh 230103193
Marketing + Channel Strategy | Analysing the Convergence
Strenghts Challenges Opportunities
Remote Area Access enabled Brand Messaging: Difficulty in
through the Van Network ~ Vast maintaining consistency while Building clear communication
Small Store Connectivity working with intermediaries ENHANCED & regular connections ~ share
COMMUNICATION market/consumer insights +
Robust solution to the consistent messaging.
REACHING Customer Experience: Minimal
UNDERSERVED Fragmented Retail Landscape LIMITED control over how products are
MARKET of Philippines
CONTROL
presented/sold
Defining the right metrics to
Aligns with the Marketing DEEPER track effectiveness ~ SKU level
Data Collection: Challenging to PERFORMANCE
Strategy of Broadening Market MEASUREMENT Sales Growth + Brand
analyse Consumer Behavior in
Share & Brand Presence Awareness & Sentiment
remote areas ~ affected by the
intermediary layer.
The potential decrease in ROI from 15% to 12% would directly impact UniGlobe's
Uniglobe’s Decreased profitability.
profitability
Handing over SLS volume to wholesalers means UniGlobe would lose direct
Cons Loss of control over control over: Pricing and promotion of products in the SLS channel.
the SLS channel Quality and service standards in the channel.
Customer relationships with small retailers and middlemen.
Shifting volume from wholesale to SLS may upset existing wholesale and
Risk of upsetting supermarket partners.
higher margin Wholesale and supermarkets currently offer higher margins per unit
channels compared to SLS.
Cons Neglecting current partners could lead to strained relationships and
potentially reduced profits from these channels.
The Wholesale and other channels are put under pressure to generate profits
Over reliability in
with the high-margin SKUs and compensate the SLS channel, irrespective of
wholesale channels to
Cons produce profits in high-
their higher/lower market price.
Every retailer might not wish to keep a higher market price SKU, irrespective
margin products.
of the margin enjoyed.
Negative impact on distributor margins and the willingness to sell the low-
Upsetting Distributors
margin SKUs.
profits and increasing
The incentive policy of UniGlobe towards the distributors is affected due to
overhead costs.
the increase in overhead costs, leading to a drop in sales.
Incorporating the SLS Operation In-House
Increased control
Increased capital investment
Improved management of pricing, promotion,
quality, and service standards. UniGlobe would need to invest significantly in:
Stronger relationships with small retailers and Infrastructure and personnel to manage the
middlemen. SLS operation internally.
Training and development of new staff for the
Pros
Improved brand image and customer
experience in the SLS channel. channel.
The high price sensitive consumers may shift to other substitute products.
Market share of the
The 32% of the population i.e. approx 25.5 million people with high price
company may be
sensitivity may be lost and the market share of the company may be reduced
impacted negatively as a result. The whole channel will be impacted and may result in closure.
Recommendations
2 Pilot the In-house Model in a selected region: This will allow UniGlobe to
gain experience, assess feasibility, and identify potential challenges in a
controlled environment before potentially facing nationwide issues.