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Palladium Door

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Submitted By elena0901
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Executive Summary

2003 was a very successful year for Palladium Door Inc., a small regional garage door manufacturer, reaching $9.2 million dollars in sales with $460,000 in net profit. As the 2004 approached, the director of sales and marketing, Richard Hawley, asked that they create a plan to raise sales for 2004 by 36% to $12.5 million. This idea was driven primarily by suppliers, in respect to the raw materials needed to make the steel doors. It was agreed that more sales were necessary to keep a stable buying position with these suppliers and more budget was needed on promotions and advertising to achieve this goal. The company distributes steel residential and commercial garage doors and supplies through 300 independent dealers and 50 exclusive dealers which service 150 markets. However, 50 of these markets have the 50 exclusive dealers as the only provider of Palladium doors. Palladium also had 10 sales representatives. To meet the sales goal, it was imperative to determine the amount of dealers, their locations and particulars needed to achieve this. A number of solutions were offered by Palladium executives: adding more dealers into the current markets it operates in; developing an exclusive franchise program with nonexclusive dealers operating in different markets; reducing the number of dealerships, not changing the distribution strategy or dealers.
Main Competitors: Cloplay Corporation, Overhead Door Corporation, Wayne-Dalton Corporation, Amarr Garage Doors, and Royner Garage Doors.
Key Issue: Which distribution strategy should Palladium Door, Inc. choose in order to reach their corporate sales goal of $12.5 million in 2004, without significant increase in their expenses?
Recommendations: Palladium should focus on improving sales within their exclusive market areas. I recommend introducing a franchise program to expand their sales in the

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