Company S, as a new manufacturer in the motor scooter market, must develop marketing strategies to ensure the continued motivation of its new channel partners, in order to secure sales and garner its share of the marketplace. These channel partners have a strong loyalty to the competitors products; but with the proper mix of sales strategies, Company S will be able to penetrate the marketplace and develop strong and lasting sales partnerships.
Five Strategies for Motivating Dealerships as Intermediaries of Company S:
1. Incentive Programs
Company S will provide a strong incentive program for the dealerships, such as quantity discounts based on the number of scooters the dealership sells. The more scooters the dealership sells, the lower their cost to purchase the merchandise. One advantage of such an incentive is the building of a partnership between Company S and the dealership. The disadvantage is the increased cost to the Company.
2. Increased Profit Opportunities
Company S will also increase dealership motivation by providing additional profit opportunities. This includes providing the dealerships with marketing and advertising and sales promotions, as well as offering the dealerships credit terms on their product purchases. Through these opportunities, Company S will strengthen its relationship with the dealerships. Again, the disadvantage is through an increased cost to the company by means of advertising dollars and carrying credit terms.
3. Sales Quotas
A tried and true strategy for motivating dealerships to increase sales of a product is through sales quotas. By setting a sales quota for the dealers to meet each month, Company S will encourage the dealerships to increase sales. This method has the distinct advantage of not costing the Company and funds. However, the disadvantage of this strategy is through the means of coercive power versus a partnership with the Company and dealers. With Company S being new to the marketplace, coupled with the dealerships strong loyalties to the competitor products, this strategy will be especially difficult to achieve.
4. Create Partnerships with the Dealers
Company S should create partnerships with the dealers and allow them the opportunity to participate in decisions regarding the distribution of the product, such as sales promotions,...