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.
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Pride, W & Ferrell, O.C. 2000, Marketing Concepts and Strategies, Boston: Houghton Mifflin, p. 103.
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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..
Armstrong, G, Adam, S, Denize, S, Kotler, P, 2010, Principles of Marketing 5th Edition, Pearson Australia Group, Frenchs Forest
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