Measuring & Managing

Dealers Power Perception

A new approach to Dealer Management
How often we try to find out what our Channel
Partners feel / perceive/ think of us ?
 Today,
Channel members are no longer our business
partners but an alienated enterprises
This alienation is because of a sense of
powerlessness that we create by our
Policies and Practices
 Coercive Power

Where the company has more market power,

financial clout, and leadership which it uses
with the channel member to dictate terms
and conditions of business dealings.
 Attraction Power

Where a channel member is attracted to the image

of the company and brand pull which places the
company in dealer’s esteem and regard &
popularity (mass appeal of the brand).
POWER PERCEPTIONS CAN BE MEASURED !
 Coercive Power Index

Coercive Pow er Index %

Business with Compa ny ha s to be on

their terms

Compa ny officia ls a ct like VIP when they

visit us

When compa red with c ompa ny, we a re

a sma ll fish

Any communic a tion with Compa ny is

one wa y tra ffic

0 20 40 60 80 100
 Attraction Power Index

Attraction Power Index %

Company produc ts sell faster than other

suppliers

While dealing w ith Company I feel safe

and sec ure

Company treats me as a equal partner

I find business advise by Company

management useful

Company distributorship makes a better

business sense
 Typical Overall Power Index
100

90

80

70
62
60
Value(%)

50

40 35

30

20

10

0
Attraction pow er index Coercive pow er index
 Impact of Power relationship on
Loyalty, Advocacy and Parternership

CORRELATION COEFFICIENT
Loyalty Recommendation Partnership

Attraction Power 0.69 0.62 0.86

Coercive Power -0.52 -0.54 -0.69

Dealer Management using Power Perception
Power Index

100

Low
Big brother Cordial
75

Coercive Power
50

25 Indifferent Carrot & Stick

High

0
0 Low 25 50 75 High 100

Attraction Power

Note : Y Axis has been reversed