You need to thoroughly understand the concepts of intensive, exclusive, and selective distribution, as well as direct vs. 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. The Background readings include detailed discussion of the pros and cons of intensive, exclusive, and selective distribution and offer guidelines on whether to use an indirect or direct distribution approach. Make sure to incorporate these readings in your answer and apply the relevant concepts to your recommendations.
You have recently developed a high quality hair dryer that is one of the best in the industry. However, it is expensive, and you plan on selling each unit for $500. Only high income individuals will be able to afford the dryer, and you intend on it being a 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 incorporate the relevant concepts 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 use relevant concepts to justify 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 apply relevant concepts to justify your answer.