Farm Harvest: A Distribution Dilemma
(4 pages of text)
In 2017, Farm Harvest Pvt. Ltd., a company that produced and marketed fresh corn and ready-to-eat corn products, was facing distribution problems. The owner and managing director of the company, was worried about the sales of his company’s products. During a discussion with his core management team about the non-availability of their products in the market, the owner realized that declining sales could be due to distribution network problems. In order to revamp their distribution network, the team considered pursuing direct distribution rather than going through distributors. The team also had to look at the financial aspects of the direct distribution model versus that of distributors in order to make a decision.
This case is about sales and distribution management and is intended for a marketing course. Ideally, it can be taught in the second year of a graduate business program in courses on marketing, sales, sales management, or distribution management. After working through the case and assignment questions, students will be able to
- understand the concepts of distribution channel and channel management;
- undertake an examination of the fundamentals of return on investment (ROI) for farm products, enabling them to calculate the ROI for the various distributors; and
- understand the actual process involved in conducting a thorough analysis of the feasibility of the investment, which is essential in the decision-making process.
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