Ingersoll Rand (a) Decision Sheet

Ingersoll-Rand (A) Problem Statement To decide the distribution channel to ingestion for the Centac cc, the new 200 hp centrifugal air compressor. Whether the distribution be handled by the compute sales team or use the distributor/air centre channel. Also, the case highlights merits and demerits of each of the channels in detail. close Clabough should opt for the direct sales team channel. Rationale for Decision acquire Historically, the centrifugal air compressors have been handled by the direct sales team only owe to their large hp size and technical expertise required. They have the required experience to sell centrifugals. * Competition Also, the nearest probable competition to Centac 200 is from the Z series rotary compressor from Atlas-Copcos which is cosmos sold by distributors. So by opting to sell through the direct sales team, IR can avoid head-on competition and excessively completely differentiate a rotary from a centrifugal in the market. Expertise Consideri ng that it is the first medium centrifugal, the direct sales team is break down positioned to supply the technical expertise. They have well established service capabilities. If IR chooses the distributor channel, it will have to incur additional costs(and time) on yearning distributor training. * Attractiveness May not be attractive to distributors owing to the very low spare part requirements in centrifugals. Apart from that, IR would not want the attention of distributors to be shifted from the smaller compressors, which form a big share of its total revenues. Recommendation In order to competitiveness the risk of sales reps ignoring the Centac 200, IR may choose to offer high sales commission to the direct sales team on Centac 200 sales. Also, the Full Partner Program can be extended to centrifugals in any case where the distributors earn commission on references made to the sale team, thereby alike involving the distributors in the process.