Name: Adapted with permission from Professor Elaine Landry, Babson College, c2004, by Sarah Woodside P
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EGOTIATION P
REPARATION S
HEET FOR
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AKRA B
EVERAGE
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EGOTIATION
Instructions: To help you prepare for negotiations, please complete this negotiation preparation sheet with the information about your situation, as well as what you perceive or imagine is the situation of the other party. Bring a copy of your preparation to use during the exercise. Your Name: Tam Nhu Phan Your Role: Sales director
Questions Your answer Your (best guess) answer for the other party Briefly, what is the best outcome you expect to come from this negotiation? (Your aspiration value) To secure a distribution contract for Bakra Beverage that reach $6.75 million a year Offer Bakra a distribution agreement for $4 million per year What are 3 possible alternatives if you do not reach agreement? Underline your BATNA. (In other words, what will you do if you do not reach agreement?) Seek new partnerships
Diversify Bakra's distribution portfolio
by branching out into non-beverage products or new categories such as snacks, health drinks, or even non-food consumer goods that could be distributed through the same channels as beverages.
Invest in developing and marketing Bakra's own brand of soft drinks or other beverage products.
Partner with competing distributors Enter the market directly Expand in neighboring markets: If Kumar's market proves to be too challenging or if suitable distribution partners cannot be found, BebsiCo could focus on expanding their presence in neighboring regions or countries
What is the least acceptable offer you need to reach agreement? (Your reservation value) $4 million per year $6.75 million a year What are the key topics you need to discuss (in other words, what are your negotiation agenda items)? If possible, list them in order of importance. Greeting before going into terms Benefit Bakra can provide to BebsiCo: •
Ability to distribute not only soft drink but BebsiCo’s juice and specialty drink products through its newly acquired distribution company (Jayyid)
•
Connections for Wider Distribution: local connections, such as the chain restaurant connected to a Bakra board member, to enhance market penetration.
Negotiate the annual distribution fee
Try to lower the offer cost Assure about the market reach
