Case Analysis on San Fabian Supply Company (Philippines)
The San Fabian Supply Company is a building materials distributor which supplies the materials to the Philippine construction industry mainly on an exclusive-only basis. Now one of its suppliers MacDowell Corporation notified San Fabian Supply Company that the exclusive-distributor agreement would be terminated in four months. So the company has to make a decision whether to handle MacDowell Corporation’s products on a nonexclusive basis or to drop the line completely. As discussed in our group, we think San Fabian Supply Company and MacDowell Corporation should find a way to accomplish win-win, and selective distribution may be a good way.
The San Fabian Supply Company’s basic marketing strategy is exclusive distribution strategy on its distribution channel strategy. Under this strategy, the company grows very fast and is one of the largest suppliers of building materials in the Philippines. It also has a good reputation for quality materials. The San Fabian Supply Company also has other strengths that lead to the company’s success. It has a relatively long history and rich experience in supplying building materials to the Philippine construction industry. It has good relationship with the Philippine government and has accumulated a lot GuanXi throughout the Philippine construction industry. It has powerful well-trained and aggressive sales forces to acquire different customers and its selling network covers the whole country. A retail sales force call on architects, engineers, contractors of nongovernment projects, homeowners, and industrial firms; a wholesale sales force call on the independent retail dealers; and a government sales force call on government contractors, departments, and agencies. The company provides its sales forces with formal training program and seminars, and incentive pays. All of these contributed a lot to the San Fabian Supply Company’s success....
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