Case Name :      JSW Shoppe – A Unique Distribution Model for Branded Steel

Authors :           V. V. Gopal

Source :             Ivey Publishing

Case ID :            W11638

Discipline :        Marketing

Case Length :    13 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Organized Steel retailing was not a very popular concept among steel manufacturers in India. There were very few initiatives undertaken by the Indian players, and the most prominent one was the JSW Shoppe concept promoted by Jindal Steel Works (JSW). JSW, a manufacturer of various grades of steel, sold its products through a large network of dealers. However, the management was concerned with building a brand image for its products, increasing its market penetration beyond its current market of builders and fabricators and attracting the attention of end users who, in turn, would drive up the sales. The company felt that the current distribution model would not serve the purpose, and designed the unique concept of JSW Shoppe – a franchising model wherein the company would partner with the existing, as well as, new dealers to achieve their objectives.Set in 2010, the case study deals with the issues and challenges of transforming from a transactional distribution model to a relationship-based distribution model for franchising. Through the analysis of the case study, students can try to find the execution flaws in the company’s transformation, and seek the best way to address the issues related to this transformation. The case demonstrates the importance and role of a sales person and the problems and issues that arise when the distribution model is changed – both from the dealers’ and the company’s perspectives. Highlights of the case include the presentation of the challenges of franchising a specialty product, the evaluation of dealers using a balanced scorecard and the preparation of an elaborate training module for the sales force.