Tapal Distributors: Case Study
TAPAL
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D I S T R I B U T O R S.
Tapal deals only with distributors on contract basis with no other intermediaries involved. They do not extend credits to their primary customers and all their sales are cash based. The contract comprises of a specification of a complete volume of the market, Tapal’s share in the market, the profit margin of the distributor, the sales that will be made by the distributor, as well as the complete route plan of the distribution network. After this the operational and managerial responsibilities are up to the distributor himself.
Tapal chooses their distributors after analyzing their complete financial background and Public Relations. They provide the distributors with a detailed description of the distribution network; all the costs and expenses involved and when the distributor agrees the contract is signed. This contract involves the condition that the distributor has to be brand loyal, pro-active and cannot deal with other tea companies otherwise the contract will be terminated. The contract includes a clause that describes its termination process. Either of the two parties: Tapal and the distributor, can terminate the contract on one month basis.
Generally the company has divided its market into territories in the following way:
Tapal has divided Pakistan into 2 regions i-e north and south. The regional sales manager for south is MR. SYED HASSANAIN HAIDER ZAIDI and for north is MR.WAHID SARWAR. Both these managers report to the national sales manager, MR. JAFFER BALOCH, and national sales manager to managing director MR. AFTAB.F.TAPAL. At the top of this hierarchy is MR.FAIZULLAH TAPAL the chief executive of the organization. Regions are further subdivided into zones. The regional office in Karachi was only able to provide us with the Information regarding the southern zone and some information regarding the northern region is not available to us.
South is divided into 4 zones. These zones
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D I S T R I B U T O R S.
Tapal deals only with distributors on contract basis with no other intermediaries involved. They do not extend credits to their primary customers and all their sales are cash based. The contract comprises of a specification of a complete volume of the market, Tapal’s share in the market, the profit margin of the distributor, the sales that will be made by the distributor, as well as the complete route plan of the distribution network. After this the operational and managerial responsibilities are up to the distributor himself.
Tapal chooses their distributors after analyzing their complete financial background and Public Relations. They provide the distributors with a detailed description of the distribution network; all the costs and expenses involved and when the distributor agrees the contract is signed. This contract involves the condition that the distributor has to be brand loyal, pro-active and cannot deal with other tea companies otherwise the contract will be terminated. The contract includes a clause that describes its termination process. Either of the two parties: Tapal and the distributor, can terminate the contract on one month basis.
Generally the company has divided its market into territories in the following way:
Tapal has divided Pakistan into 2 regions i-e north and south. The regional sales manager for south is MR. SYED HASSANAIN HAIDER ZAIDI and for north is MR.WAHID SARWAR. Both these managers report to the national sales manager, MR. JAFFER BALOCH, and national sales manager to managing director MR. AFTAB.F.TAPAL. At the top of this hierarchy is MR.FAIZULLAH TAPAL the chief executive of the organization. Regions are further subdivided into zones. The regional office in Karachi was only able to provide us with the Information regarding the southern zone and some information regarding the northern region is not available to us.
South is divided into 4 zones. These zones