Palladium Door

Recommendation:
It would be in the best interest of atomic number 46 inlet, Inc. to develop a formal exclusive program and dumbfound exclusive contracts with willing dealers.

Problem Statement:
Should palladium Door, Inc, a privately owned regional manufacturer of residential and moneymaking(prenominal) store doors, develop a formal exclusive enfranchisement program to help solve the distribution strategy break through?

Facts:

Market
* residential garage door name awareness is very(prenominal) low
* Steel garage doors account for 90% of industry gross gross revenue
* Residential garage door industry expected to post sales of $2 meg in 2003
* Projected 2004 sales of residential garage doors to the home remodeling market were up 2.4% to $2.05 billion
* Demand for successor garage doors is up with many customers replacing old woody garage doors with new steel garage doors
* Independent retailers had sales of $348.5 million in 2003

palladium Door Inc.
* Privately owned garage door manufacturer.
* In 2003, sales were $9.2 million
* In 2003, they had a net income of $460,000.
* Manufactures insulated and non-insulated steel doors.




* 70% of sales comes from exclusive dealers
* then 30% of sales came from non-exclusive dealers

Competition

* Competitors include Clopay Corporation, Overhead Door Corporation, Wayne-Dalton Corporation, Amarr Garage Doors, and Roynor Garage Doors.
* Home Depot, Menards, and Lowes Companies sell antagonist brands in their stores
* Palladium Door, Inc. is one of the smaller regional garage door manufacturers in the industry

Assumptions:
1. Sales for Palladium will augment by 36% in 2004
2. Total sales for Palladium will equal $12.5 million in 2004
3. Industry-wide, residential garage doors sold to the home remodeling market will equal $2.05 billion in 2004

Analysis:
Palladium Door, Inc. is looking to expand their overall sales in the steel garage door market. Palladium is a smaller...If you want to get a full essay, pose it on our website: Orderessay



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