Sales & Distribution Case Study [PDF]

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ASSIGNMENT:SALES &DISTRIBUTION MANAGEMENT SIDDHARTH KAUSHIK(15SECE106001) NEGOTIATION CASE STUDY

1.) Are you statisfied with the way Suresh Kumar has conducted the negotiation with Voltas? Ans. Negotiation is a process that tries to maximize the benefit to both buyer and seller . Mr. Kumar adopted a passivebalanced strategy. Business with Voltas important for EEL. Hence, allowed them some concessions. Provided discretionary 12% discount too. Although, could have taken a more dominant position. So I am not completely satisfied with the way Mr. Suresh Kumar had negotiated with Voltas. The Positives of Mr.Kumar were: Mr. Kumar was right in allowing only 12% added discount.

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Demand from Voltas was unrealistic.

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12% discount - Win-Win situation for both parties. Both companies working on thin margins. Hence the 12% was appropriate.

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Although business with Voltas desirable - 15% would be stretching too much. Hence, correct impression provided.

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The Negatives of Mr.Kumar were: Mr. Kumar gave in too much too soon.

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Rather, he could have been compromised with freight charges.

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Could have explained the services they were offering as a compromise on price.

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Could have explained the benefits of dealing with EEL to Mr. Bhasin.

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Competitors might not offer even this much discount.

2.) If you were regional marketing manager, (RMM-E), of EEL, how differently you would have handled the key or major account like Voltas? Ans. If I was the regional manager of EEL first of all I would have worked on the shortcomings of that Mr. Suresh Kumar which were: 

Mr. Kumar gave in too much too soon.

Rather, he could have been compromised with freight charges.

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Could have explained the services they were offering as a compromise on price.

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Could have explained the benefits of dealing with EEL to Mr. Bhasin.

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Competitors might not offer even this much discount.

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The Style of negotiation used by Murli Bhasin The GM (Materilas) of Voltas was- “I WIN - YOU LOSE” They Straight away took control of the meeting Dominant stance. Allthough they are a reputed company and have upperhand over supplier but Mr.Kumar would have made a better bargain on the bases of:  The long term relationship they have previously had with Voltas.  They could have gone for a much better “WIN-WIN” situation was portraying their loyalty for Voltas that they had maintained over the years.  They could have demonstrated and conveyed more proficiently about the quality of their equipments and why it is better than others, as a result of which they were the first ones to be called by the Voltas

 They could have also used a bit of aggressive stance and told them aout the other clients that they can have a better negotiation chances with Hence these are some ways in which I as a Marketing Manager would have tried to pull-off a better deal for EEL.