Pyramid Door, Inc.
Autor: Ishan Nayak • April 28, 2019 • Case Study • 1,293 Words (6 Pages) • 369 Views
Pyramid Door, Inc.
Marissa Lira, Ishan Nayak, Lamonte Nelms
MKT 5023 – Spring 2019
Dr. David Johnsen
April 8, 2019
I. Major Issue / Problem
The major issue / problem: Which distribution strategy should Pyramid Door, Inc. utilize to meet the goal of increasing sales to $12.5 million.
II. Alternative Courses of Action
A. Increase the number of dealers by adding 100 non-exclusive dealers.
1. Advantages:
a. Increases retailer capacity so that Pyramid Door, Inc. can have a chance to meet sales goal.
b. Increases Pyramid Door, Inc. market presence/penetration.
c. Increases customer access to Pyramid Door dealers. Increases convenience for customers.
2. Disadvantages:
a. Increase in costs associated with sales representatives
b. May potentially oversaturate market with Pyramid Door products
c. Increase in transportation costs.
d. Requires an increase in sales of 57% for all non-exclusive dealers in order to meet $12.5 million sales goal.
3. Quantitative Analysis
Current Distribution Strategy
2005 Sales | $9,200,000 |
# of Exclusive Dealers | 50 |
# of Non-Exclusive Dealers | 300 |
2006 Projected Increase | 2.4% |
2006 Projected Sales ($9,200,000 x 2.4%) | $9,420,800 |
2006 Sales from Exclusive Dealers (70%) | $6,594,560 |
2006 Sales/Exclusive Dealer | $131,891 |
2006 Sales from Non-Exclusive Dealers (30%) | $2,826,240 |
2006 Sales/Non-Exclusive Dealer | $9,421 |
Alternative A Analysis
New # of Non-Exclusive Dealers | 400 |
Non-Exclusive Sales to Meet $12.5 Million Goal ($12.5 Mill. - $6,594,560) | $5,905,440 |
Sales per Non-Exclusive Dealer to Meet $12.5 Million Goal (400 Dealers) | $14,764 |
Increase in Sales per Non-Exclusive Dealer Required to Meet $12.5 Million Goal | 57% |
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