AIMA Assignments: contact us for answers at assignmentssolution@gmail.com

MM02

Sales & Distribution Management

(CNM Cases)

Assignment – I

Assignment Code: 2016MM02A1                                                                Last Date of Submission: 30^th April 2016

                                                                                                                                  Maximum Marks: 100

Attempt all the questions.  All questions are compulsory and carry equal marks.

Section-A

1.         Explain the functions of a sales manager in any sales organization?

2          Explain the relative advantages of a line sales organization and line and staff Sales organization?

3.         What are the statistical methods of sales forecasting?

4.         What is the importance of sales quotas and what are its different types?

Section-B

Case Study

Mr. Dillip Gangadharan is the vice-president (sales) of MRF Tyre Company, who is negotiating with Mr. Chandrapal Singh, the Vice President (Purchase) of Maruti Udyog Limited the leading car manufacturer in India, for a contract to deliver tyres for the new car line called ALTO in the Indian market.

Mr. Chandrapal Singh: My position is that we are not prepared to pay more than 1200 INR PER TYRE which has to be steel belted, radial with a warranty of 25000 kilometers. What are you willing to offer?

Mr. Dilip Gangadharan: We are prepared to deliver such tyres at 1600 INR per tyre. That’s the rock bottom we can go. We are barely making any profit at this level. 

Mr. Chandrapal Singh: Come on. Why are you trying to fool me? I am in this profession for quite some time. You people have a reputation of sticking it to your customers. I know your costs cannot be more than 600 INR per tyre. We are thinking of placing an order of 2,50,000 tyres for our new model Alto this year. Let us skip the preliminaries and get straight down to the lowest that you can offer. You should also know that other tyre companies are also trying to do business with us and many of them will come down to our price level by merely looking at the size of the order.

Mr. Dillip Gangadharan: Our price is 1600 INR. Given the quality of our product, we feel that we don’t have to negotiate with prices. The product can sell by itself.

Mr. Chandrapal Singh: What you mean is that you really want to stick to your large original equipment manufacturers. Even with the volume we are offering you, you seem to be too greedy. If you really want our business, you should try to do business with us. This take it or leave it attitude is going to backfire for your business.

Mr. Dillip Gangadharan : Its OK. The company does not allow any of the salespeople to play with the prices for any customers.

Mr. Chandrapal Singh: What do you mean by this? With kind of volume we are offering, you are not ready to come down on prices?

Mr. Dillip Gangadharan: That’s right. My company has got the best rated steel radial tyre in the industry and we cannot afford to negotiate on price.

Mr. Chandrapal Singh: All right gentleman, you are missing an opportunity here for some big business; if this is the way you do business, then I don’t find a day when you will be able to do business with us, atleast as long as I am there in this company?

5.         Case Questions:

a.      Is this a good illustration of how negotiations should take place? What kind of bargaining tactics are used by both the parties in this case?

b.      What should Mr. Dillip Gangadharan have done to close the sale? Suggest a negotiation strategy for him?                                                                                                                                      (10+10)