Identifying the problem: * Palladium Door, Inc wants to increase its sales goal to $12.5 million for 2004 which represent a 36% increases in sales over projected 2003 year-end sales.

* During the planning process, a number of fellow executives had voiced concern over whether distribution approach used by Palladium Door was appropriate for the expended sales goal. Richard Hawley is the director of sales and marketing felt that their concerns had merit and should be given careful consideration. Though he had considerable latitude in devising the distribution strategy, the final choice would have o be consistent with achieving the 2004 sales goal. His approach and action plan had to be prepared in a relatively short time to permit
* Committing to any franchises program could limit the company flexibility in the future. * Improvement in sales force effort and possibly increase sales might result if more time is given to fewer dealers. * 50 exclusive dealers would benefit from the additional marketing spending.

Cons: * I don’t see any cons as exclusive that are highly profitable to company is still the same * But losing benefit from franchise program.

* 4th viewpoint
Voiced by several executives was not to change either the distribution strategy or the dealers. Rather, they believe that the company should do a better job with the current distribution policy and network.

Pros: * By additional investment in advertising and promotions, the company may focus on awareness campaigns about their brand, products and their competitive advantages over competitors. Cons: * Not having a large number of nonexclusive dealers, not expanding like what franchises program will do.

I recommend the second viewpoint, as through their advertising and promotions the company will capture a high publicity for its products. Unaffecting the existing exclusive dealers as they are the most important to company as they produce 70% from company sales goal. Also will sell and create new markets and sell products effectively. A franchise provides an established product or service which may