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Situation exercise number 2 ORGANIZATION OF THE SALES SYSTEM The American company, a manufacturer of cheap shoes, decided to identify the possibility of entering the
Situation exercise number 2 ORGANIZATION OF THE SALES SYSTEM The American company, a manufacturer of cheap shoes, decided to identify the possibility of entering the Indian market. According to the results of desk research, it turned out that in India, retail trade in footwear is in the hands of independent merchants, who own about 60% of retail trade in cities and about 90% in rural areas. About 40% of urban footwear trade is carried out through the shops of various companies. Sales in rural areas are much lower due to the poverty of the population. Competition in the Indian shoe market is observed mainly between national firms, and they supply shoes of sufficiently high quality only to urban areas. The quality of American footwear is much higher than that of other foreign companies. Due to the high cost of freight, air transportation will significantly increase the selling price of shoes, so shipping by sea from New York to Bombay is preferable. Due to the limited amount of working capital at the Indian wholesalers will have to pay for transportation and take an inventory of the goods before entering the warehouse of the wholesaler. After being placed in stock, the wholesaler
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