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Sales & Distribution Case Study

Suresh Kumar, the regional sales manager for EEL, negotiated a deal with Voltas but the student was not fully satisfied. While Kumar allowed a 12% discount, which was reasonable, he gave in too quickly without leveraging EEL's long-term relationship or services. As the regional marketing manager, the student would have emphasized EEL's quality, loyalty over the years, and other customer options to take a more balanced negotiating position and get a better deal for EEL.

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884 views4 pages

Sales & Distribution Case Study

Suresh Kumar, the regional sales manager for EEL, negotiated a deal with Voltas but the student was not fully satisfied. While Kumar allowed a 12% discount, which was reasonable, he gave in too quickly without leveraging EEL's long-term relationship or services. As the regional marketing manager, the student would have emphasized EEL's quality, loyalty over the years, and other customer options to take a more balanced negotiating position and get a better deal for EEL.

Uploaded by

sid
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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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 passive-
balanced 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.
 Demand from Voltas was unrealistic.
 12% discount - Win-Win situation for both parties.
 Both companies working on thin margins. Hence the
12% was appropriate.
 Although business with Voltas desirable - 15% would
be stretching too much. Hence, correct impression
provided.
The Negatives of Mr.Kumar were:
 Mr. Kumar gave in too much too soon.
 Rather, he could have been compromised with freight
charges.
 Could have explained the services they were offering
as a compromise on price.
 Could have explained the benefits of dealing with EEL
to Mr. Bhasin.
 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.
 Could have explained the services they were offering
as a compromise on price.
 Could have explained the benefits of dealing with EEL
to Mr. Bhasin.
 Competitors might not offer even this much discount.
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.

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