ARAVIND.

R
KISHORE KUMAR.A
MUTHULAKSHMI
 Leading firm in the stationary air compressor with a market share of 30
percent
Here the various channel distributions are
Direct sales forces
Independent distributors
Air centers
Merchandising team
The product line for the different channels were clearly defined ,but the
company channel at times competed directly with each other
Air compressor sales declined from $500 Million in 1980 to $460 Million
in 1985
Intense price competition in lower horsepower range (< 25 hp)
 Direct sales force
DSM was headed by direct sales manager with 5 regional manager with 26
direct salespersons.
Responsible for sales of Reciprocating > 250 hp, Rotaries > 450 hp and all
centrifugals.
Independent Distributors
Responsible for sales of Reciprocating < 250 hp and Rotaries < 450 hp
Responsible for technical and service support as well, they were servicing 80
IR independent distributor.
Distributed Ingersoll-Rand as well as competitors products.
Air Center
Responsible for sales of Reciprocating < 250 hp and Rotaries < 450 hp
Distributed Ingersoll-Rand products only.
It has 19 air center.
Manufacturers Representatives (for retails)
Responsible for selling Do-It-Yourself products (reciprocating
compressors less than 5 hp)
5 MRs catering to retail chain stores and catalogue houses
Paid 3% commissions on sales
 Uneconomical to sell machines worth below $5,000 through a direct sales
force
But the main factor is that the buying behaviour of the customers
Large compressors
Detailed specifications, technical expertise required is high , Complex
service requirements , Machine failures are costly
so all these conditions favoured the use of direct sales force channel.
Medium and Small compressors
Less demanding specifications, less complex behaviour
Off-the shelf availability a priority to meet tight schedules (product to
be delivered within a week)
Small compressors (< 5 hp)
Used for small jobs.
Reached through retail outlets
 Product Specifications:
200 hp centrifugal machine (Medium range)
Operated at high speeds (50,000 rpm)
Provides oil-free air unlike reciprocator and rotaries.
Advantage through direct sales force
Minimum sales cost
Technical support is better than other channels
No additional training is required
Provides head to head competition with atlas copcos z series
Disadvantage through direct sales force
Partial attention to centac 200 and the sales rep considered this as a
lower end of their line
Loss of rotary sales
 Distributed through the distributor network and air centers would be an
advantage because
The distribution will be consistent and there will be no confusion in the
distribution channel segments.
One time training cost is required but in future if the product line is
expanded it will be helpful (so it is a one time investments)
The concentration for centac 200 will be increased in the distributor
network and air centers