1. Case Study Analysis
“Boston Whaler, Incorporation: Managing the dealer Network”
Submitted By
Abhijat Dhawal
80303120011
NMIMS-HYD (Batch 2012-14)
2. Overview
Mr. Joseph Lawler, president of Boston Whaler, Inc. (BWI), believes that better dealer
management is the key to success. BWI manufactured a high-price, high performance line of
power and other boats for the recreational, commercial, and other markets. Its 250 dealers were
served by a small force of regional managers. Most dealers were not exclusively Whaler
distributors, and Whaler sales ordinarily did not account for the majority of dealer revenues. Mr.
Lawler wants the dealers' "commitment" to Boston Whaler, Inc. increased, whether through new
dealer agreements, training, and minimum stocking requirements or whatever other device will
help increase the importance of the BWI relationship to the dealers. Presents a relatively
complete account of distribution management problems, and additionally, allows a thorough key
account analysis of BWI's top 50 dealers.
Case Issue
The issue which the case seeks to find the solution is about the dealer management and their
commitment.
Is the dealer commitment low? Justify your answer and delineate what should BWI do to
maintain or increase the dealer commitment
Analysis & Recommendations:
As mentioned in the case, BWI faces heavy competition in the large-boat market, which
is looked after by six different manufacturers (Mako, Grady White, Robalo etc.) apart
from BWI. Hence dealers also face the competition in terms of sales of boats. Also when
dealers engage into the sales, they focus on their own profits and margins rather than the
company’s one. Therefore we cannot deny the possibility of low commitment by the
dealers.
In order to solve various issues faced by the dealers, BWI should periodically conduct
open house meetings for dealers. This would act as a platform to address the issues faced
by dealers as well as to make the relationship stronger.
To sustain in the market, any company has to be innovative and hence BWI should focus
on its R&D department to come up with new products, which will give BWI an edge over
its competitors. They should invent such products which will cater to the niche market. If
the company is able to do so, the dealers themselves will be attracted towards the
company and the commitment level can drastically go up.
To make the process of buying boats better, BWI should have the approach to help its
dealers. The company can help to solve the problems of dealers which the dealers face
while selling the boats. For example, BWI should make logistics system in such a way
3.
that neither dealer nor the customer will face the problems in the buying transaction.
Hence BWI can map the customers along with the dealers.
The very basic solution for the dealers to increase the commitment levels is incentives
and benefits to them. BWI should focus initially on incentives in monetary forms and
later on the non-monetary aspects.
The non-monetary aspects may include discount coupons and vouchers; tickets of
different entertainment shows like music concerts etc. this will help the company to build
a confidence and trust in the minds of dealers and will ultimately result into a better
commitment level.
The company can focus on its promotion aspect and should try to make BWI as a national
brand. Once the company is recognized and well accepted as a brand, the dealers would
automatically feel to be committed more to BWI rather than to its competitors. Also the
branding and promotional part will help the company to increase its sales in the market.
As mentioned in the case, the advertisements in the Northeast and Southeast regions have
been successful. Hence it can focus on the regional advertisements in those areas and try
to attract the dealers located in those areas. It can also include dealers’ contribution for
the advertisements for cost effectiveness. If the dealers are involved in the
advertisements, the company can include the dealers name and contact details in the
respective areas. This is one of the cost effective way to advertise the boats manufactured
by BWI.
For the better brand name and visibility, BWI can organize direct marketing campaigns
and integrated marketing communications
In B2B context, it is very important to maintain healthy relations with the dealers, clients
and suppliers. Hence it is imperative for BWI to solve the problems faced by the dealers.