As with all of the case assignments, make sure you’ve thoroughly reviewed both the Pearson tutorial and the required book chapters before starting on your paper. Make sure you thoroughly understand the concepts of intensive, exclusive, and selective distribution. Also, make sure you understand the concepts of direct versus indirect distribution.
For this assignment, you will be making recommendations for various situations as to what kind of distribution strategy a company should take. For each of the situations below, consider the pros and cons of each type of distribution strategy. Richardson and Gosnay (2011) and Browne (2013) both have detailed discussion of the pros and cons of extensive, intensive, and exclusive distribution and guidelines on whether to use an indirect or direct distribution approach. Make sure to make use of both of these readings in your answer. But don’t just summarize these two readings; instead apply their concepts to your recommendations.
Once you have thoroughly reviewed the background readings, write a four- to five-page paper giving your recommendations on distribution strategy for the following situations:
- You have recently developed a very high quality shampoo that is one of the best in the industry. However, it is very expensive and you plan on selling it for $250 a bottle. Only very high income individuals will be able to afford it and you intend on it being a very prestigious product that movie stars and models will use. Should you use an indirect or direct distribution approach? And should you use an intensive, selective, or exclusive distribution approach? Explain your reasoning, and make sure to cite Richardson and Gosnay (2011) and Browne (2013) as part of your answer.
- You have started a new company that manufactures extremely inexpensive laptop computers. The laptops are not fancy, but still allow consumers to perform basic functions such as surfing the internet or using basic applications such as Word and Excel. You plan on offering the laptops for $150, and wish to reach as wide of a market as possible. Should you use an indirect or direct distribution approach? And should you use an intensive, selective, or exclusive distribution approach? Explain your reasoning, and make sure to cite Richardson and Gosnay (2011) and Browne (2013) as part of your answer.
- You have started a company that allows consumers to design their own clothes. Using your online technology, consumers can customize shirts, jackets, and other clothing items based on patterns they draw on their computer and their choice of fabrics and size. The designs are then turned over to a specialized factory that manufactures the clothing items. Should you use an indirect or direct distribution approach? And should you use an intensive, selective, or exclusive distribution approach? Explain your reasoning, and make sure to cite Richardson and Gosnay (2011) and Browne (2013) as part of your answer.
