Route to Market Dilemma at Nutrawell

The case represents the typical relationship between principals and distributors and the challenges they regularly face. It aims to provide students with a situation in which the perspectives of both parties can be examined. Nutrawell, a multinational consumer goods company based in Prague, Czech Republic, is facing strong backlash from three of its distributors in the Lahore region due to low returns on investment (ROI). The distributors are demanding an increase in the distribution margin to offset their declining ROI. Nutrawell, the principal in this case, claims that the distributors’ ROI calculation is flawed because they failed to consider certain factors that would have yielded a higher ROI. Exploring the factors related to principals and distributors can help explain the events that led to the disagreement between Nutrawell and its distributors.