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Target Chemicals India Pvt. Ltd. (TCL) is a leading manufacturer of industrial chemicals. TCL primarily produces Phthalic Anhydride (PA) that is regarded as a commodity chemical in Indian market. The case focuses on the challenges that TCL faces with its distribution channels design with the current scenario of PA market in Western India. The case highlights the mismatch between customer buying processes and the company's selling process as a major factor for inefficient distribution. Uncertain consumer buying patterns and regulatory and related factors in PA market further complicate this already competitive and complex commodity market. The case discusses the distribution channel design of TCL and elaborate on several associated factors such as, managing relationship with downstream agents and dealers. Furthermore, the case discusses the challenges in formulating the structure and processes of TCLs distribution and the resulting implication for distribution channel design. It brings forth various distribution strategies that a firm operating in commodity B2 B market could use to maintain its distribution efficiencies and foothold with changing market variables. Besides providing a note on the challenges that firms operating in such industries face, the case also presents an overview of the commodity chemical industry in India and an elaborated view of the Indian unstructured B2B market.

Key Words: Developing Economies, Distribution Challenges, Distribution Channel Design, Distribution Channel Relationships, Distribution Restructuring

INTRODUCTION

On the first spell of 2015 monsoon rains in Ahmedabad (India), Mr. Kanwar Jeet Singh was overlooking at the flooded road outside his office and contemplating over the last three months that he spent in field sales. Mr. Singh was assigned the role of the company's sales executive at Target Chemicals India Pvt. Ltd. (TCL) right after his MBA from a premium B-school in India. His mandate is to enhance the sales of Phthalic Anhydride (PA) - a commodity chemical, in Gujarat market. Gujarat market is one of the most lucrative markets for commodity chemicals in India. However, it is also known for its difficult business environment. Kanwar recalls his first conversation with the regional manager about the peculiarities of doing business in Gujarat market and dealing with multiple channel members, i.e., dealers and company agents:

"You have all the support from the management in working with dealers, agents and other channel partners...

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