29 Jun You have recently developed a very high quality
Question
As with all of the case assignments, make sure you’ve thoroughlyreviewed both the Pearson tutorial and the required book chapters beforestarting on your paper. Make sure you thoroughly understand the concepts ofintensive, exclusive, and selective distribution. Also, make sure youunderstand the concepts of direct versus indirect distribution.
For this assignment, you will be making recommendations forvarious situations as to what kind of distribution strategy a company shouldtake. For each of the situations below, consider the pros and cons of each typeof distribution strategy. Richardson and Gosnay (2010) and Paley (2007) bothhave detailed discussion of the pros and cons of extensive, intensive, andexclusive distribution and guidelines on whether to an indirect or directdistribution approach. Make sure to make use of both of these readings in youranswer. But don’t just summarize these two readings, instead apply theirconcepts to your recommendations.
Once you have thoroughly reviewed the background readings, writea four to five page paper giving your recommendations on distribution strategyfor the following situations:
1. 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 onit being a very prestigious product that movie stars and models will use.Should you use an indirect or direct distribution approach? And should you usean intensive, selective, or exclusive distribution approach? Explain yourreasoning, and make sure to cite Richardson and Gosnay (2010) and Paley (2007)as part of your answer.
2. You have started a newcompany that manufactures extremely inexpensive laptop computers. The laptopsare not fancy, but still allow consumers to perform basic functions such assurfing the internet or using basic applications such as Word and Excel. Youplan on offering the laptops for $150, and wish to reach as wide of a market aspossible. Should you use an indirect or direct distribution approach? Andshould you use an intensive, selective, or exclusive distribution approach?Explain your reasoning, and make sure to cite Richardson and Gosnay (2010) andPaley (2007) as part of your answer.
3. You have started acompany that allows consumers to design their own clothes. Using your onlinetechnology, consumers can customize shirts, jackets, and other clothing itemsbased on patterns they draw on their computer and their choice of fabrics andsize. The designs are then turned over to a specialized factory thatmanufactures the clothing items. Should you use an indirect or directdistribution approach? And should you use an intensive, selective, orexclusive distribution approach? Explain your reasoning, and make sure to citeRichardson and Gosnay (2010) and Paley (2007) as part of your answer.
Reference material:
Richardson, N.& Gosnay, R. (2010). Chapter 6: Right time, right place, right quantity,right condition. Creating Success: Develop Your Marketing Skills. KoganPage Ltd., London, GBR. [Ebrary]
Paley, N.(2007). Chapter 10: How to manage your distribution strategy. MarketingStrategy Desktop Guide (2nd Edition). London, GBR: Thorogood, London, GBR.[Ebrary]
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