1. Ace Brokerage Company
Sales and Distribution Management – Case Presentation
Group : C 4
Shivani Khandelwal 11P168
Naved Siraj 11P207
Nayan Jain 11P208
Paritosh Baisoya 11P210
Sumit Chandra 11P231

2. Introduction
Local Super
Morreaux Ace Brokerage
Markets
Morreaux Sugar Company Ace Brokerage Company
• 70 % market share in retail • One of the three largest brokers
grocery business (commission of $ 0.5M per year)
• Opportunity to enter into • Avg. commissions - around 3 %
Institutional business • Renowned for quality of service
• Channel principal of Ace • Represent 25 suppliers (of which
Brokerage Company Morreaux is one of the largest

3. Distribution Channel
• 80% sales through locally Food
processors/
owned chains or local Manufacturers
cooperatives
• National chains captures only
about 10% of total retail National super
Food brokers
market chains
volume
• Dependence of brokers to
obtain market penetration
Local
Local chains
• Presence of more than 20 food cooperatives
brokers

4. Current Scenario
Morreaux’s Concern
• Ace Brokerage’s failure to cultivate institutional market
• Growing ‘away-from-home eating’ market
• Competitors growing in institutional trade
• Little growth of retail grocery business
Morreaux’s Alternatives
• Choose another broker for institutional trade
• Develop and go forward with Ace Brokerage
• Forgo the opportunity for institutional business

5. Institutional Market
Food Processors /
Manufacturers
Feeding
Institution’s
Local Wholesaler
distribution
centers
Restaurant chains Fast food chains Feeding Institute

6. Recommendation
Develop Ace Brokerage in institutional field Relational
Exchange
• Morreaux and Ace’s relationship is somewhere
in between relational exchange & discrete
relationship Morreaux – Ace
Relationship
• They should try to move towards relational
exchange where both parties have the desire
to achieve long term goal which is entry into
Institutional business
• Morreaux should coordinate the activities of
Ace so that the activities are always oriented Discrete
towards the common goal Relationship

7. Recommendation
• Morreaux current strategy - Direct unweighted strategy
- involves direct request to channel member where principal
communicates desires or wishes concerning the channel
member’s acceptance of the channel programme
• Other alternative - Direct unmediated strategy
- Specific action is requested , consequences of acceptance or
rejection are stressed but are based on response from market
environment, not on mediation of channel principal

8. Recommendation
Tolerance function
Channel A B
members C
profit Pay –off function
Coercion
Persuasion Authority Control
• Morreaux and Ace’s relationship is in persuasion phase.
• Other alternative - moving towards authority phase which involves
instructions and formal communication with the channel member in order
to achieve the desired goals

9. Conclusion
• Fast growing Institutional business is a potential win - win for both
Morreaux and Ace
• Since they already share common views and compatible goals it
would be easier for Morreaux to develop Ace in institutional field
than to choose another broker
• Focus on relational exchange will be beneficial in the long term
• Since it’s a new area for both Ace and Morreaux, both of them
should incline towards coordinated behaviour

10. Thank You