San Fabian Case Study
Questions for San Fabian:
1) What does San Fabian bring to its relationship with MacDowell? Do you think San Fabian has been a good distributor for MacDowell? Why?
- Experience navigating heavy corruption through the Philippines’ political and economic system
- National coverage that was partially built up to support the MacDowell product line
- Strong brand name built on decades of high-quality service and products
- Exclusive-only basis approach to distribution has allowed San Fabian to spend heavily on targeted advertising, consultations and customer support on behalf of MacDowell
o Critical since MacDowell’s products, while high quality, have a lot of product-specific installation methods that need to be implemented to ensure customer satisfaction
o San Fabian uses a highly trained, technical workforce that would be difficult for MacDowell to replicate (San Fabian also compensates them extremely well, with significant potential for commissions to equal 50-100% of base)
- Valuable relationships at all types of customers
o Retail: lists of architects and contractors that salespeople frequently call
o Wholesale: majority of dealers are Chinese, like Paul Cheng
o Government: personal relationships with people at all levels across multiple departments (Public Works is example, where San Fabian employee used to be at the DPW and so can drive the sale and collection process)
- Surrounds MacDowell’s products with complement of other building supply products that promote the sale of MacDowell’s offerings as a part of end-to-end solutions
- Provides MacDowell with feedback on the state of the market in the Philippines and capacity for more product (however, this advice often goes unheeded)
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...eatment (however slight) to keep them happy, even as MacDowell executes on the rest of its plan to take more of the sales process into its own hands.
His ultimate goal is to get MacDowell up to capacity and increase sales. If San Fabian is right and having an exclusive distributor is the right way to go, he should make sure he keeps them happy and ready to sign a new distribution agreement if things turn out badly. However, if San Fabian is wrong, then Jean should try to foster the types of relationships with government and commercial contacts that San Fabian has and integrate itself into the market. With regard to dealers, Brevett should leverage his experiences in Australia, but adjust his expectations accordingly given the different market dynamics in the Philippines and the fact that he might be seen as an outsider.
Mission San Juan Capistrano is in the center of the small town named for it. Shops and restaurants also named for it are found on the streets in front of the entrance to the mission. A high adobe wall surrounds the mission grounds. There are many restored buildings in the inner patio, and the great stone church. Across the fountain there is the bell wall that sits beside the ruined church. Near the bell is a statue of Father Junipero Serra. The ruins of the original stone church are in front of the mission. Only the sanctuary and parts of the church remain, but that’s enough to have an idea of how big it was. The church walls are made of large stones and birds have build nests between them. Mission San Juan Capistrano was one of many Spanish
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Pride, W & Ferrell, O.C. 2000, Marketing Concepts and Strategies, Boston: Houghton Mifflin, p. 103.
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Fr Jose Maria Arizmendiarrieta, a Catholic Priest, founded the Mondragon Corporation, a cooperative in the Basque region of Spain in 1956. The region suffered greatly during the Spanish Civil War (Thomson, 2010) and Fr Jose felt it his calling to help his regions people recover, allowing them to continue to support themselves. Fr Jose’s motive was to promote individuals’ moral character as well as social justice through the creation of a new kind of work place, one that encouraged hard work, cooperation, shared rewards, and individual responsibility. At the same time, he sought to generate employment and income in a region that had been impoverished by war, dictatorship and neglect (Lafuente, 2012). The initial cooperative was successful and from that much other cooperative business emerged in industries including banking, manufacturing, distribution and education. The Mondragon Corporation multiplied until it became the biggest employer in the region (Witzel, 2003). The Mondragon Corporation now consists of over 82,000 people in an integrated group of so...
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Lamb, C. W., Hair, J. F., McDaniel, C. D., & Wardlow, D. L. (2009). Essentials of marketing (6th ed.). Cincinnati, Ohio: South-Western College Pub..
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Armstrong, G, Adam, S, Denize, S, Kotler, P, 2010, Principles of Marketing 5th Edition, Pearson Australia Group, Frenchs Forest
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