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).
1. 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).
2. 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,...).
3. Discuss how the organization benefits by using one or more intermediaries.
4. 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.