Case Solution for Balancing the Demands of Customers and Suppliers

Case Solution & Analysis for Balancing the Demands of Customers and Suppliers by Jaydeep Mukherjee, Punit Bhardwaj.

Complete Case details are given below :

Case Name : Balancing the Demands of Customers and Suppliers
Authors :           Jaydeep Mukherjee, Punit Bhardwaj
Source :              Ivey Publishing
Case ID :           9B16A028 / W16394
Discipline :        Marketing
Case Length :    10 pages
Plagiarism : NO (100% Original work)
Description for case is given below :
Jade eServices Pvt. Limited (Jabong), an e-retailer of fashion products in India, regularly had to balance conflicting expectations from its supplier brands and consumers. The discounts that e-retailers had to offer to consumers to generate sufficient sales resulted in brand dilution, which compelled these brands to avoid the online channel. After allowing large discounts on Jabong’s website for two years, Puma, a major international sports shoe brand, decided to stop discounting product lines that were contributing to 14 per cent of Jabong’s footwear sales. Puma products helped to attract new customers, and Puma’s decision had the potential to affect the commercial terms offered by other footwear brands, which would have even more impact on Jabong. Jabong’s director of sports apparel knew that he was unlikely to meet the required growth figures without discounts on Puma’s products. He needed a new strategy to compensate for Puma’s withdrawal of discounting options, and he needed it immediately.
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