1. Is ADA right in taking negative action against the distributors? and why? 2. What type of conflict is occuring between ADA and the distributors? 3. What would be the best way to resolve this conflict?

ADA Foods ADA is a well established manufacturer of packaged food. due to its success in attracting a good share of loyal customers, ADA ventured aggressively into NPD strategy. It successfully developed 3 new products within a span of 6 months and the Company wanted its distributors to sell them nationwide. The items included a new range of instant noodles (in a pack of 5 Packets, a variety of cordials made from fresh tropical (in bottles of 0.5-litre and 1-litre sizes), and a new range of tomato paste (in tins weighing 10 grams each). ADA's distributors are independent wholesalers who also stock goods from other manufacturers. The distributors are reluctant to carry these new products from ADA as they take up a lot of shelf space and this would also mean less space for other established and better selling items produced by ADA. However, ADA insisted that all the distributors should comply with its demands but the distributors, did not. They felt that giving too much space to new products that are yet to be proven saleable is not a good strategy. ADA is contemplating taking necessary actions against the distributors who refused to adhere to its directives