Masterton Carpet Mills

Case Analyses on Masterton Carpet Mills, Inc. and Godiva Europe

By: Akyol, Saiman S. Gutierrez, Emil G. Marcelang, May Anne B. Siy, Dean Carlo T.

MARSTRA – KOA S / 9:00 – 12:OO

Masterton Carpet Mills, Inc. Problem The problem is whether to establish their own distribution centers (retail stores) or to retain wholesale operations. Objectives •

Finance programs from internal funds except for capital expansion.

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To explore retailing activities and still maintain relationship without affecting the wholesale operations.

Constraints •

Lack of promotion to its clients with regards to their innovation in value added dimensions and differentiate carpets and rugs from other floorcoverings.

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Sales people spends 25% of activities in non-selling activities

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Lack of marketing efforts particularly in the residential carpet and rug replacement segment

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No export sales

Key success Factors •

Retail Buying Groups

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Direct Selling ( Residential segments)

Alternative Solutions •

Reduction of price to its retail buying groups that could be passed on to clients.

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Open warehouses in Dallas-Fort Worth and Atlanta.

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Maintain relationships with the retail buying groups.

Best Alternative Maintain the wholesale activities with the existing retail buying groups that can save costs on distribution. Action Plan •

Come up with a warehouse monitoring group consisting of Area Managers that will monitor a certain number of warehouses in seven (7) metropolitan areas. In two warehouses, one (1) Area Manager will be assigned to monitor warehousing activities so that the salespeople can focus more on selling.

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In maintaining their retail buying groups, a discount can be given to the bulk purchases made.

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Socialization activities can be launched once a year with existing clients for them to feel that they are part of the whole business and invite personalities from mass media companies. (For Publicity)