AMBASSADOR TORCHLIGHTS
Introduction
Ambassador Torchlights were the second largest in the market for dry cell batteries and allied products. Having a good distribution network, the company wanted to utilize this strength by taking over the distribution of some consumer items.
Facts
Their national network of distribution comprised of 80000 retailers and stockists. They also had a large fleet of vans which serviced the rural sector. Ambassador Torchlights adopted the policy of ?follow the leader' which was United Battery Manufacturers. They had marketed their private brand of blade known as ?Best' with moderate success. Ambassador Torchlights contacted Central Industries which had 2 brands of blades ? ?Splash' which was made of Stainless steel and ?Awake' which was made of Carbon steel.
Aggressive marketing by Central industries had achieved first time buying by the consumer; however they could not sustain the sales. This was attributed to the fact that the company had received complains by the users that as many as two out of the five pack of blades were faulty.
Central industries accepted the proposal of Ambassador Torchlights for the distribution of its blades, but laid down a clause that they would terminate its contact they were not satisfied with their performance.
Problems
1)Ambassador Torchlights could either opt for the distribution of their own private brand or they could take over the distribution of Centrals brands ?Splash' & ?Awake'.
2) If they marketed their own brand, how should it be positioned?
3) If they marketed Centrals brands, they needed to know why the repurchase rate was low.
Questions
Should Ambassador Torchlights take up distribution of blades? If yes, should they go in for ...