Case 14
American Olean Tile Company
Case Objectives
1) To suggest the use of channel strategy to secure the cooperation of channel members
aimed at achieving a manufacturer’s distribution objectives.
Problem Situation
This case does not present a problem situation for which effective corrective measures need to be
undertaken. Instead, American Olean Tile Company (AOT) wants its distributors’ salespeople to
Teaching Suggestions
This straightforward case deals with the strategic issue of motivating channel members – a topic
of significant import in the management of distribution channels. Before critically assessing the
Case Discussion
Builders Square, Channel, Ace Hardware, Rickel Home Centers, and other channel members
such as ceramic tile contractors and floor-covering dealers should be the primary focus of AOT
distributors’ sales efforts.
Realizing that distributors’ salespeople have not placed much emphasis on aggressively pushing
its ceramic floor tiles, AOT embarked on devising an incentive program in the form of a sales