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Ace brokerage company


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  • 1. Ace Brokerage Company Sales and Distribution Management – Case Presentation Group : C 4 Shivani Khandelwal 11P168 Naved Siraj 11P207 Nayan Jain 11P208 Paritosh Baisoya 11P210 Sumit Chandra 11P231
  • 2. Introduction Local Super Morreaux Ace Brokerage Markets Morreaux Sugar Company Ace Brokerage Company• 70 % market share in retail • One of the three largest brokers grocery business (commission of $ 0.5M per year)• Opportunity to enter into • Avg. commissions - around 3 % Institutional business • Renowned for quality of service• Channel principal of Ace • Represent 25 suppliers (of which Brokerage Company Morreaux is one of the largest
  • 3. Distribution Channel• 80% sales through locally Food processors/ owned chains or local Manufacturers cooperatives• National chains captures only about 10% of total retail National super Food brokers market chains volume• Dependence of brokers to obtain market penetration Local Local chains• Presence of more than 20 food cooperatives brokers
  • 4. Current ScenarioMorreaux’s Concern• Ace Brokerage’s failure to cultivate institutional market• Growing ‘away-from-home eating’ market• Competitors growing in institutional trade• Little growth of retail grocery businessMorreaux’s Alternatives• Choose another broker for institutional trade• Develop and go forward with Ace Brokerage• Forgo the opportunity for institutional business
  • 5. Institutional Market Food Processors / Manufacturers Feeding Institution’s Local Wholesaler distribution centersRestaurant chains Fast food chains Feeding Institute
  • 6. RecommendationDevelop Ace Brokerage in institutional field Relational Exchange• Morreaux and Ace’s relationship is somewhere in between relational exchange & discrete relationship Morreaux – Ace Relationship• They should try to move towards relational exchange where both parties have the desire to achieve long term goal which is entry into Institutional business• Morreaux should coordinate the activities of Ace so that the activities are always oriented Discrete towards the common goal Relationship
  • 7. Recommendation• Morreaux current strategy - Direct unweighted strategy - involves direct request to channel member where principal communicates desires or wishes concerning the channel member’s acceptance of the channel programme• Other alternative - Direct unmediated strategy - Specific action is requested , consequences of acceptance or rejection are stressed but are based on response from market environment, not on mediation of channel principal
  • 8. Recommendation Tolerance function Channel A B members C profit Pay –off function Coercion Persuasion Authority Control• Morreaux and Ace’s relationship is in persuasion phase.• Other alternative - moving towards authority phase which involves instructions and formal communication with the channel member in order to achieve the desired goals
  • 9. Conclusion• Fast growing Institutional business is a potential win - win for both Morreaux and Ace• Since they already share common views and compatible goals it would be easier for Morreaux to develop Ace in institutional field than to choose another broker• Focus on relational exchange will be beneficial in the long term• Since it’s a new area for both Ace and Morreaux, both of them should incline towards coordinated behaviour
  • 10. Thank You