Fairdeal appliances: managing the dealer network for optimal sales

1. Analyse Market and Situation Analysis

Strengths
 Strong brand image  Fairdeal has been managing the dealer network for optimal sales in a
well-known brand
 High quality  Increasing of its market share by the loyalty from current customers, because
Fairdeal offers a high quality of products and services. Those key points make it competitive in
the international market
 Solid Financial Statement  with the strong positioning of Fairdeal with the product category of
air conditioners, they have and increase return on sales (RoS)
 Invest in research and development  fight with the competencies
 “Extra-Bonus”  charge an extra price, whereas competitors do not do it.
 Property Rights  the increasing innovation evolution (patents) is a competitive advantage
 Regulations  in the environment Fairdeal are facing regulations and government rules. Here is
important to develop a strong relationship and lobby with the most representative political
decision-makers.
 Product portfolio’ variety  Fairdeal can target a diversity of segments, onto national and
international spectrum, thank for its market research.
 Sales and Marketing solutions  Fairdeal has reached out for first-time markets that the
competitors do not consider like an option.

Weaknesses
 Environment perception  Fairdeal has a bad position related to the environment ,therefore,
can impact negatively in customer’s mindset over the brand, as well as a further partnership
where the protection of the environment is important
 Inventory and cash management  the bad management of the inventory and cash cycle can
impact the optimal process of the sales cycle
 Technology  although the robust implementation in the backend, they are so far to
consolidate a front end accurate and integrate a synergy in this process.
 Project Management  Fairdeal should focus on external stakeholders to avoid damage their
current relationship with them. They should search for equity between internal delivery and the
interest of external stakeholders.
 Necessity of an accountable workforce abroad  Fairdeal is missing the opportunity to succeed
in the international market because currently, they are focus on its domestic market.
 Facing the imitation  Although the high quality of products developed by Fairdeal, the
competitors have launch replicates by different price points.

Opportunities
 Inclusion of products environmentally sustainable  regarding the lifestyle of consumers, they
tend to be environmentally friendly, health-conscious and looking for wellness with organic
products. Increase awareness about it is a business opportunity.
 Expansion in the international market  develops a strong presence abroad, to reduce the risk
of the dependence of the domestic market revenue.
 Business development into B2B relations with the diversification of products, Fairdeal will
enhance its business development, improving that they already have and they will launch with
 standardization of its process, focus on the most representative products, and after that Fairdeal
could expand in adjacent areas.
 State-of-the-art technologies  to understand deeply the needs of the current customers and
the new-ones, Fairdeal can integrate its process with artificial intelligence to predict the
consumer demand and develop accurate/customizable offers by the data and journal behavior.

Threats

 Low price by competition  Fairdeal has a rivalry with companies who offer the same products
at a cheap price.
 Increased competition  as well as companies with the lowest cost of production and small-
scale players
 International regulations  Fairdeal should focus on the law regulations, as well as
environmental regulations in aboard countries, Fairdeal should implement cleaner options in its
process.

PESTEL?

Porter’s Forces?

2. Competitor Analysis

3. Present your answers in Q&A format ensuring to use effective written

business communication. Create a slide deck to showcase your work and
responses.  Answer all questions thoroughly and lead back to the core of
any marketing challenge and solution: revenue, market share, exposure.

Questions:
3.1. Why did Abdul become a  Technica  dealer in January 2018? What
would be the likely impact of this decision on Abdul’s margin and
sales?
Most of the customers were looking for Technica products such as air conditioners, washing
machines, television and refrigerator. Because Abdul was not satisfying the customers’ needs, it
was facing a problem of losing customers which was leading to decreased sales. 

3.2. What would be the likely impact of Abdul’s decision

on Fairdeal’s  business? How would the other dealers and
companies likely respond?

As Technica is the main competitor of Fairdeal, it would affect its business in a negative way. It
is because, replacing the products of Fairdeal with Technica in Abdul that is the biggest retail
outlet in Denpasar would be a financial blow that would lead sharply decrease in the sales. In
addition, compared to Fairdeal Technica has technologically advanced products and implements
aggressive promotions which are more attractive factors that customers are looking for while
purchasing an air conditioner. So, it would get harder to protect the market share. 

3.3. What are the dealer network’s options, and the implications of
those options for Fairdeal  ? Consider the perspectives
of  Ajmal  Jaffer,  Asim Shameen  , and  Hassan Umar.

Induapp is one of the largest retailers in Denpasar and has outlets in strategic locations.
However, the requirements of Induapp does not meet with the Fairdeal’s. It makes it more
challenging to build a partnership with Induapp. 
Vision Electronics is the main seller of GOLDY and Technica. So, placing the Fairdeal products
in the same store with Technica may influence its sales negatively because of changing priorities
of consumers during the purchase. 
Spectrum is having trouble with customer acquisition and retention which would make it harder
to increase sales and protect the market share of Fairdeal. 
Therefore, instead of working with the dealers that Fiardeal did not work before, strengthening
the relationship with Rahman Sales may give good consequences as they have potential to
increase sales of Fairdeal based on the past records (20% increase from 2015 to 2017).

3.4. Which way forward would you recommend for  Fairdeal ? Why?