Case 4-2 Handy Andy, Inc

Question 1: Is this a customer service problem? Why or why not?

Customer service is sometimes defined as keeping existing customers happy and we have little evidence that there is a customer service problem. We do not know of customers who are inconvenienced by this system, nor do we know of lost sales. However, some customers are probably confused by the system.

Question 2: Marketing channels are the arrangement of intermediaries (wholesalers, retailers, and the like) that the firm uses to achieve its marketing objectives. Is the problem discussed in Handy Andy’s marketing channels? Why or why not?

This is a marketing channels problem because the arrangements between the home office, the factory distributors, the regular dealers and customers are not what was planned. The existing systems may be working better, but that is not the question.

Question 3: Logistics channels handle the physical flow of goods or service. Is the problem discussed in Handy Andy’s logistics channel? Why or why not?

There is probably not much of a problem in the physical flow of goods because the factory distributors were expected to be the main source of compactors, delivered and installed.

Question 4: It appears that the factory distributors are exploiting the smaller dealers. Yet from what we can tell, Handy Andy in St. Louis has heard no complaints from the smaller dealers. Why would they not complain?

They may be afraid or they may be receiving “kick-backs” from the factory distributor. Chances are that if the smaller dealers were losing money then they would likely complain to Handy Andy.

Question 5: What should Handy Andy’s marketing Vice President do? Why?

Probably study the situation further because there is little or no information so far that the existing arrangements, confusing as they may seem, are cutting into Handy Andy’s sales. The problem may be more complicated than the text indicates because the dealers and factory distributors also probably market other lines...