Case 6- Duncan Ind
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Brian Lopez Morales
Dr. Byramjee
MKTG 450
2 April 2024
Case 5: Duncan Industries
-
laying out their present distribution & sales network
The industry was being dominated by two large U.S firms, AHV lifts and Berne Manufacturing who together held about 60% of the market. AHV held approximately 40% of the market and annual sales of about $60 million offered a complete line of hoists but focused primarily on the in-ground market and the two-post surface market. AHV was the only company with their own direct sales force, while all other companies used only wholesalers or
a combination of wholesalers and the company salesforce. Berne Manufacturing had a market share of about 20% and competed in the same fields that AHV was in. Berne used a combination of wholesalers and their company salespeople. Both AHV and Berne competed primarily on price. DI had two competitors that manufactured scissor lifts. AHV lift marketed a scissor hoist that had a different lifting mechanism but did not include the safety knocking features of the Duncan Lift. The AHV lift was sold for 20% less than the DI lift. The second competitor was Mete Lift, who had a lift similar to DIs without the safety features. It was sold
for about 5% less than the DI lift. The DI lift gained recognition and was called the “Mercedes” of hoists. It was seen as superior because of its design and the quality of its workmanship, safety features and easy installation. It also came with a 5-year warranty. There were 4 patents on the DI including the lifting mechanism on the scissor design and the safety locking mechanism. In 1991 DI sold 23 hoists, costing about $172,000. Sales were made to
independent service stations and garages specializing in wheel alignment in the Quebec and Ontario market. By 1999, the company had already sold 1,054 hoists and had sales of $9,708,000. 60% of the sales were to the U.S market and 40% to the Canadian market. Dis distribution system reflected the need to engage in extensive personal selling. 3 distributor types were used: a company sales force, Canadian distributors, and a U.S. automotive wholesaler. DI sold directly to GM, Ford, Chrysler, Petro-Canada, Firestonē, and Goodyear.
- perusing the suggested growth strategies. To date (case date), Duncan Industries has not yet been rejected by any accounts. In total, the company salesforce generated about 25% of the unit sales each year. The Canadian distributors handled the Duncan lift and carried a line of noncompetitive automotive parts and lifts. They focused on the smaller chains and the independent service stations and garages. The U.S. wholesaler sold a complete product line to service stations as well as manufacturing some equipment. The DI lift was one of five types of
lifts that they sold. Although they did have some sales and provided DI with a larger distribution, DIs lift was a minor product. It was believed that DI’s lift accounted for less than
20% of the total lift sales of the U.S. wholesaler. There was still a huge potential for the U.S. market since the market was 10 times the size of the Canadian market. DI also distributed a catalogue-type package with their products, the uses, the prices, and other important information. The lift sold for $10,990 and DI received on average $9,210 for each unit sold. The direct distribution channel gave 100% of the selling price to DI, with the Canadian distributors, DI received 80% of the selling price, and for the U.S. distributors, where DI received 78%. Pierre though that DI had 3 options for expansion into the European market: licensing, joint venture, or direct investment. They would have more luck with the licensing option since a French firm showed interest in manufacturing the Duncan lift. The joint venture
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Related Questions
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Hawaii Pacific University
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2-5
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6-7
4-7
0
8
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4
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10
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14
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February
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August
September
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May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
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May
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Aug
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Oct
Nov
Dec
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1.78
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1.93
1.83
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210
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135
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190
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Activity
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Time Estimates (Weeks)
Optimistic
Most Likely
Pessimistic
a
m
b
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1
2
3
B
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5
8
C
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3
5
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2
4
6
=
10
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3
3
5
4
2
0
10% of sales from
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1
4
0
2
1
1
7
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3
2
5
1
8
5
7
6
10
1
10
1
5
6
6
1
1
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Ruberic
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Location
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Weight
A
В
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Union relations
Material supply
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Infrastructure
20
20
10
10
10
25
5
1
2
3
3
1
2
1
3
3
3
2
2
1
1
1
2
3
2
2
2
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TET
Month
Price Per Chip
Month
Price Per Chip
$1.85
$1.61
$1.60
$2.00
$1.85
$1.65
$1.60
July
January
February
August
September
March
$1.85
October
April
May
$1.88
$1.89
$1.60
$1.75
November
June
December
This exercise contains only parts a, b, and c.
a) Using a 2-month moving average, the forecast for periods 11 and 12 is (round your responses to two decimal places):
Month
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Forecast
$1.73
1.61
1.73
1.87
1.89
1.95
1.93
1.75
1.63
1.60
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Month
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Forecast
$1.69
1.69
1.78
1.87
1.92
1.91
1.83
1.70
1.62
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Event
Alternative
1
2
3
4
5
A
100
70
115
95
60
В
95
120
120
90
150
180
130
60
160
120
80
75
50
100
95
E
60
140
100
170
160
Identify the decision taken under the following approaches:
(1) Pessimistic
(2) Optimistic
(3) Equal probability
(4) Regret
(5) Hurwicz criterion.
Note: The decision maker's degree of Pessimistic (a) is 0.2
1 Add File
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- A2 Assignment Lamar F Triplett Hawaii Pacific University MKTG 6001 Professor Ji Mi Park Jan 18, 2023 From a marketing standpoint: Does T-mobile have any Third-party or in-house marketplace? What are T-Mobile's Main challenges of selling via a third-party marketplace? what are T-Mobile's Benefits of selling via a third-party marketplace?arrow_forwardDetermine the amount of time in weeks that gives a probability of 97.5% until the seventh event in the network. Act. 1-2 2-3 2-5 2-4 3-4 3-7 5-6 6-7 4-7 0 8 4 7 7 4 7 10 10 4 M 10 5 8 9 6 8 14 14 5 24 12 21 11 8 15 24 24 Question 4: The following, and then find the following 12 The possibility of completing the project with a period of less than TE by 4 weeks what is it What is the probability of completing the project with a period exceeding TE by 2 weeks?arrow_forwardv TMC Announces Changes to Executive Structure, Senior Professional/Senior Toyota City, Japan, December 3, 2020―Toyota Motor Corporation (TMC) announced today that it intends to implement changes to its executive structure, senior professional/senior management employees, and organizational structure effective January 1, 2021.To respond to severe changes in the external environment, TMC, based on its basic policy of appointing the right people to the right positions based on the achievements and experience of each person, has been swiftly and continuously innovating its executive and organizational structures. This year, in addition to clarifying that operating officers are responsible for looking over management of the entire company as chief officers in close coordination with the president, TMC is further innovating by refreshing its operating officer lineup in response to management challenges as they arise, the path that the company should take, and other factors, and is…arrow_forward
- TeamViewer Partners with Google Cloud to DeliverEnterprise Augmented Reality Solutions on GoogleGlassTeamViewer and Google Cloud partner to modernize retail and ecommerce processes through improved in-store order picking GOPPINGEN / Germany, October 12, 2021 – TeamViewer a leading global provider of remote connectivity and workplace digitalization solutions, today announced a new partnership with Google Cloud to bring its augmented reality (AR) solutions to Google Cloud. Through this partnership, TeamViewer and Google Cloud are co-developing and co-marketing enterprise AR solutions built on Google Cloud to better serve customer needs. The first jointly developed solution ‘Assisted Order Picking’ is a hands-free order picking application that leverages Google Glass Enterprise Edition 2 smart glasses equipped with TeamViewer’s vision picking softwarefrom its Frontline suite, focusing on improving Omni channel fulfilment for grocery stores and retailers.Carrie Tharp, VP Retail &…arrow_forwardArticle: Memorandum TO: Andrew Rockfish, President FROM: Jane Clive, IT department of the Chicago North America Branch DATE: March 4, 2023 SUBJECT: Request for New KM Manager Position Dear Mr. Rockfish, I am pleased to inform you that the Board has approved the proposal for a new KM manager position for Global Delivery Direct (GDD). The position will be crucial in creating and implementing the organization's comprehensive knowledge management (KM) plan. The new KM manager will be an essential team member, contributing to running an effective and sustainable contemporary business environment. The KM manager will perform various tasks to ensure that GDD's knowledge assets are efficiently managed and leveraged for competitive advantage. The responsibilities include but are not limited to the following: • Developing and implementing a comprehensive KM plan that aligns with GDD's strategic objectives and business processes. • Creating and managing a knowledge repository for GDD's…arrow_forwardTo compete with XEROX which had a competitive advantage in technical service for copiers , canon a used the internet to substitute for xerox technical services capability by developing higher stronger and faster service line b did not try to beat xerox on its strong service capability but on the price of its copiers c substituted for xeroxs technical services capability by developing highly reliable copiers that needed little service d substituted for xeroxs technical services capability by developimh its own highly efficient capability of technical service , through an extensive bench marking of xeroxs processes and practicesarrow_forward
- Give description of the following international hotels: 1. The Upper House (Hong Kong) 2. Andronis Luxury Suites (Greece) 3. The Lover’s Deep St. Lucia Submarine – The Underwater Hotel (Carribean Islands) 4. Palms Casino Resort (Las Vegas) 5. The Plaza Hotel (New York) note: sample in the photo attachedarrow_forwardLenovo uses the ZX-81 chip in some of its laptop computers. The prices for the chip during the last 12 months were as follows: Month Price Per Chip Month Price Per Chip $1.90 $2.00 January February $1.61 $1.60 July August September $1.85 $1.65 March $1.85 $1.50 April Мay October $1.88 November $1.50 June $1.95 December $1.75 This exercise contains only parts a, b, and c. a) Using a 2-month moving average, the forecast for periods 11 and 12 is (round your responses to two decimal places): Month Mar Apr May Jun Jul Aug Sep Oct Nov Dec Forecast $1.76 1.61 1.73 1.87 1.92 1.98 1.93 1.75 1.57 1.5 b) Using a 3-month moving average, the forecast for periods 11 and 12 is (round your responses to two decimal places): Month Apr May Jun Jul Aug Sep Oct Nov Dec Forecast $1.70 1.69 1.78 1.89 1.94 1.93 1.83 1.67 1.55 c) The mean absolute deviation based on a 2-month moving average of March through December is $ (round your response to three decimal places).arrow_forwardSituation 2: Mr. Timothy Jose is the human resource supervisor of Letra Printing Company. The credit and collection manager, Mr. Gilbeys Cruz scrutinizes the top 3 applicants. Mrs. Gina Maculangan is the top one among the applicants so she was hired for the position. Mr. Jose informed Mrs. Maculangan that she was hired. As a requirement of the company, Mrs. Maculangan must secure medical certificate and NBI clearance. Unknowingly, she is 1 month pregnant as shown in her medical certification. Mr. Jose informed Mr. Cruz that Mrs. Maculangan is pregnant. Mr. Cruz was so disappointed because it may cause delay of works if Mrs. Maculangan will take maternity leave soon. He decided to decline the hiring of Mrs. Maculangan due to her pregnancy. However, Jose didn’t agree on Mr. Cruz’s decision because the job order was already accepted by Mrs. Maculangan. Questions: How should Timothy Jose handle the problem? What do you think is the ethical and legal considerations to consider in this…arrow_forward
- 5 project management issues faced in executing, monitoring, and controlling when rebuilding the elliott bay seawall and their solution strategiesarrow_forwardTentative business name: SMK Agroprocessors Business Type: Processimg of fruits (canned, fruit bowls, dried fruits) Market: Health conscious subset of the market which is steadily growing. Reduction of NCDs Location of Business: Portsmouth, Dominica With the information given, create a detailed relevant risk assessmentarrow_forward21. United Express Service (UES) uses large quantities of packaging materials at its four distribution hubs. After screening potential suppliers, UES identified six vendors that can provide packaging materials that will satisfy its quality standards. UES asked each of the six vendors to submit bids to satisfy annual demand at each of its four distribution hubs over the next year. The following table lists the bids received (in thousands of dollars). UES wants to ensure that each of the distribution hubs is serviced by a different vendor. Which bids should UES accept, and which vendors should UES select to supply each distribution hub? Distribution Hub Bidder 1 2 3 Martin Products 190 175 125 230 Schmidt Materials 220 150 210 235 155 Miller Containers 225 135 260 D&J Burns 170 185 190 280 Larbes Furnishings Lawler Depot 240 260 220 190 140 130 270 200arrow_forward
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