Choose an organization: Describe Distribution Channels, Benefits/Costs of intermediaries
Choose a firm that produces tangible products (NOT a retailer) that are ultimately sold to final consumers and is part of a distribution channel involving at least one other independent organization as an intermediary and uses at least two different sales channels (e.g., direct sales, retail).
- Describe the organization, its target market, its positioning and its current competitive situation. Also discuss the products that it produces (NOTE: If the company is very large and produces many diverse product lines, narrow focus to just one division or product line of that company).
- Classify and describe the multi-channel distribution system for the product line and assess the appropriateness of its design in relation to its desired service output levels (e.g., lot size, waiting time, spatial convenience,...).
- Discuss how the organization benefits by using one or more intermediaries.
- Describe the costs and potential risks that the firm must encompass by using these intermediaries. Explain how the distribution system does or could operate as either a vertical (VMS) or horizontal (HMS) marketing system and the benefits associated with that system strategy, or why a VMS or HMS doesn't make sense for the channel.
Please give a great deal of consideration to your selection of the organization and the product that will be used in your case. Your selection must meet the following criteria:
* The organization should produce a physical product that is eventually sold to final consumers.
* The organization must be part of a distribution system that includes a minimum of one intermediary.
The organization must sell its products through two or more channels (e.g., retail, online sales, telephone sales, sales force).