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3 pages/≈825 words
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Style:
APA
Subject:
Business & Marketing
Type:
Essay
Language:
English (U.S.)
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$ 12.96
Topic:
Bravomax (Unit six)
Essay Instructions:
Please answer both questions with information from the attachments.
1. How many channel levels are appropriate for your company's targeted business segment? Based on the number of channel members, should you use exclusive, selective, or intensive distribution? Why? (This answer should be at least 400 words in length)
2. What types of retailers will your company use for distributing your product? Discuss the advantages and disadvantages of using this type of retailer. (This answer should be at least 400 words in length)
*****the product is Bravomax please see both attachments****************
Essay Sample Content Preview:
Bravomax
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In many cases producers do not sell directly to the final users of goods as such producers require then intervention of marketing channels. Consequently the choice of the marketing channel affects the marketing choice of an organization. Organizations may prefer intermediaries if direct marketing is likely to be costly or is not feasible. Besides using direct marketing organizations can use one, two and three level channels. Decisions made on which channel to use depends on: channel objectives, the number of intermediaries involved and customer needs.
The company will follow the three level channel structure though retailers as intermediaries in the distribution process. Thus, customers will buy BravoMax from the retailers as this distribution strategy target new customers. As a new venture the distribution of the product will not involve wholesalers to cut down on costs. Besides the product is low priced and targets the mass market through storage in small bottles which suits retailers than wholesalers who prefer buying in bulk. Additionally, the company will establish purchase sale vehicles which will provide direct contact with customers and also offer advice on how the product suits customers with regards to scent.
Arimount has experience in the beauty industry and BravoMax is a low priced product which is likely to appeal to the mass market. Additionally, the product has numerous scents to suit various customers. Thus, BravoMax ought to use intensive distribution. This strategy is likely to be successful as the product the marketing plan envisages distribution to even the remorse areas. The low cost of production and large scale production and distribution in small bottles is appropriate for this strategy. Mass markets require huge distribution costs, but this is the most appropriate market for the product as the company diversifies and goes into new geographical locations. In essence, the choice of the intensive distribution is the best as the low priced deodorant offset the sales and distribution costs.
Intensive distribution allows product marketing of BravoMax through various retailers and wholesalers. Therefore, this strategy is likely to drive sales up but in order to minimize distribution costs the company envisages the setting up of purchase sale vehicles across the country. Furthermore, this strategy ensures that it is less likely that there will price manipulation or hoarding as there is wide distribution of the product. Nonetheless, for this str...
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