Case Analysis

Peak Garage Doors

Inc.

Submitted by:
Rovier Angelo C. Tan
Rosette M. Vergara

History

Peak Garage Door, Inc. Is a privately owned regional manufacturer of residential

and commercial garage doors. Projected year-end company sales were $9.2 million
in 2003 with a net income of $460,000. They manufactures both insulated and non
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insulated steel residential and commercial garage doors and supply springs, cables,
rollers, and side roller tracks for its products. The company distributes its garage
doors through 300 independent dealers in 100 markets that typically offer three
different garage door manufacturer brands and 50 exclusive dealers in 50 markets
that stock and sell only Peak garage doors. Combined, these 350 dealers service
150 markets in 11 western and Rocky Mountain states and parts of north and west
Texas.

Time Context
In November 2003 Peak Garage Door Inc. Were established a sales
goal of $12.5 million for 2004.

II

View point
Richard Hawly Director of Sales and Marketing.
Executives of the company

III

Problem Statement
The company was planning a $12.5 million sales goal for 2004 and
had to decide what distribution approach should be used to support
the expanded sales goal.

IV

Objectives
Long term To be one of the leading/ well known Garage door
company in United States .
Short term To achieve the $12.5 million of sales which
represents the 36% increase in sales over projected 2003 year-end
sales.

Areas of Consideration
STRENGTHS
Peak Garage Door, Inc. has a long history conducting this type of business
which can be seen as 10 years in the business

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 They enjoy the benefit of having more than 300 relationships with businesses
and 50 exclusive business deals.
In reference to the company infrastructure they have quick delivery with two
distribution centers and a distribution facility. The distribution facility also
operates the manufacturing process of the doors which can be seen as a
strength and opportunity.
Have 10 technical sales representative.
WEAKNESSES
They are small in scale and they have no cooperation with home center
chains.
Offer standardized product.
OPPORTUNITIES
Have high potential for new customers

Have great company leaders that will assure the company success in
reaching its goal.

Increase in market budget that is approved by its company executives

THREATS
The barging power of suppliers is growing and the knowledge of competitors in the
industry.

Alternative Courses of Action

1. Add at least another 100 dealers in the markets that currently

served by the company
Advantage
Large distribution network
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 Increases advertising
Increased convenience
Will have more merit in the long run (3 to 4 years)
Disadvantage
Channel conflict
Lack of information
Lack of attendant services
Too much variety
2. Develop a formal exclusive program and add exclusive dealers.
Advantage
Increased advertising
Franchise fees
Overall profit increase
Cost saving of 80 k
Better attendant services
Disadvantage
Loose 81 independent dealers
Decrease variety of doors
Decreasing brand recognition
Convenience declines
3. Decrease the number of dealers to develop an exclusive franchise
agreement with existing non-exclusive dealers.
Advantage
Relocate savings to increase market spend
Less channel conflict
Disadvantage
Less sales and profit
Less convenience
Less information
Negative image

VI

Recommendation
We recommend 2nd ACA due to the fact that exclusive dealers produced
70% of companys sales and non-exclusive dealers contributed only 30%.
In order for Peak Garage Doors Inc. to reach their sales goal for 04 they
will have to gain more exclusive dealers since they contribute much more
profit to the company and having additional investment in advertising and
promoting the company.

VII

Additional Plan

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Training and motivating new & current channel members

Modifying channel design and arrangement
Create an electronic distribution channel