Case Study-Maxwell

corporation
Pratibha Rai 25
Rachit Sethi 26
Rakshitha Deviah 27
Rhythm Malhotra 28
Ridhi Dhalta 29
Saurabh Kandpile 30
Shailja Gurung 31
Problem Identification

CURRENT SITUATION

Limited inventory in retail outlets

Single warehouse for finished goods
Causing:
Loss of sales opportunity
Transportation delay
Higher transportation cost
Resulted in low revenue and low profit
WHICH OF THE OPTIONS DO YOU THINK
SHOULD THE COMPANY CONSIDER AND
WHY?

Suggestion
We suggest Maxwell corporation sets up a hub
and spoke type of distribution network
Hub and spoke type of distribution network is:
System of connections arranged like a chariot
wheel, in which all traffic moves along spokes
connected to the hub at the center
Maxwell should establish hubs (warehouse) in
each zone

Diagrammatic representation of Hub
and Spoke distribution network
Benefits of using a Hub and spoke
distribution network
Efficient use of transportation resources
Increase volume sales
Better inventory management
Quicker response to customer orders

Drawbacks
Might increase the direct cost
Transportation cost
Wages
Warehouse rent and maintenance
Higher chances of damage of equipments
Greater degree of supervision

WHAT SHOULD BE THE DISTRIBUTION
CHANNEL FOR MAXWELL AND OUTLINE THE
ADVANTAGES AND DISADVANTAGES FOR
HAVING SUCH A TYPE OF SET UP?

Hub and spoke Model
The hub-and-spoke distribution model is a system of
connections arranged like a chariot wheel, in which all
traffic moves along spokes connected to the hub at the
center

Manufacturing Unit: Vizag

Hubs: Delhi, Mumbai, Kolkata and Chennai

Vizag supplies to The 4 hubs and then they in turn supply
units through their individual spokes




Advantages

Small number of routes leading to more efficient use of
transportation resources, hence retailers can get the orders placed
very fast

Package sorting and accounting, can be carried out at the hub,
rather than at every node reducing the complexity and making the
work more efficient

Spokes are simple

New spokes can be easily created in case more retail stores need to
be added.





Disadvantages
Changes at the hub or even in a single route, could have unexpected
consequences throughout the network

It may be difficult or impossible to handle occasional periods of high demand
between two spokes

Route scheduling is complicated for the network operator. Scarce resources must
be used carefully to avoid starving the zonal centers

The hub(zonal centers) constitutes a bottleneck or single point of failure in the
network. Total cargo capacity of the network is limited by the hub's capacity

Delays at the hub (caused, for example, by bad weather conditions) can result in
delays throughout the network

Stock must pass through the hub(zonal centers) before reaching its destination,
requiring longer journeys than direct point-to-point trips

WHAT TYPE OF MARKETING AND SALES SET
UP WOULD YOU RECOMMEND FOR
MAXWELL CORPORATION AND WHY?
Recommendations
Successful medical equipment marketing must
balance sensitivity, legal requirements and
persuasion to increase sales and revenue.

A strong marketing plan can lead to long-term
sales success.

The best medical equipment marketing tips make
sales easier, help drive customers to you and raise
the profile of your

Marketing and Sales
Marketing
Strategy
Differentiation
Value
Proposition
Positioning
Sales Strategy
Sales Structure
TMS
Marketing strategy
Maxwells marketing strategy:
Create a favourable environment to sell its
Orthopaedic Equipments.

Enhance, promote and its equipments
Positioning
Superior solution for producing orthopaedics'
equipment's.

Competitive repositioning of its competitors by
demonstrating that their offerings are:
superior and available in variety of styles, shapes
and sizes
requirement are more customer driven


Sales Strategy
After undertaking a marketing campaign, the
Company should aggressively sell its
Orthopaedic Equipments in India.

International sales efforts will follow after
achieving market penetration in the domestic
marketplace.

Structure of Sales
Aim:
To achieve maximum sales from dealers and
manufacturer's representatives.

The sales margin structure must be attractive
to these independent organizations.

Target Market Segment
TMS
CHEMISTS
PRIVATE
PRACTITIONERS

OLD AGE
HOMES
HOSPITALS