Finding the Best Distribution Channels In the lecture, you learned about the com

Question

Finding the Best Distribution Channels

In the lecture, you learned about the complexity of choosing the appropriate channel for distributing goods and creating value for the organization and the consumers. In this exercise, you will explore the issues of matching goods to the best suited channel—delivering goods to the appropriate consumers.

For each of the following products list the key considerations in selecting a channel and the appropriate level of distribution intensity. Explain your choice.

1.     A new brand of bubble gum

2.     An innovative new home appliance

3.     An orthopedic dog bed

4.     A regional pasta brand which is expanding nationally

Explanation / Answer

1. A new brand of bubble gum

The most appropriate distribution channel is through the retail segment where the consumers are in direct contact for their daily needs and impulse buying. A new brand of bubble gum would be something any young consumer will go for depending upon the attractive pack design, promotional campaign and price.

2. An innovative new home appliance

Distribution through a dealer is the most appropriate channel for this product. Consumers would look for installation as well as after sales service facilities which a dealer is best equipped to handle and provide.

3. An orthopedic dog bed

This product does not command mass sales or a regular clientele. Hence the appropriate channels would be Direct sale through sales team members or internet e-commerce.

4. A regional pasta brand which is expanding nationally

For this, the traditional channels of distribution i.e. Wholesalers and Distributors are most appropriated for reaching out to the consumers. This is mass based product and needs a channel based distribution system for bulk storage and deliveries in smaller quantities to numerous retailers.

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