Distribution Channels Assignment
Name: Ronard Ssempala
Scenario
: A small, up-and-coming luxury consumer brand is looking to expand its market presence. The brand's identity is very much defined by selling high-end, premium consumer products through brick-and-mortar stores using a small, direct sales team that prides itself on providing stellar customer service during the sales process. Company management realizes that the demand for its products is high enough that it will lose revenue opportunities if it doesn't expand its sales channel. At the same time, management worries about maintaining the culture and service quality if the sales channel expands through indirect distribution, such as through the addition of retail partners. 1. How would you recommend that this brand expand its sales channel? This brand can expand its sales channel by choosing indirect distribution partners that fall under
its business model, vision, goals, and values. Since this indirect distribution businesses have been in the business of distribution for a good time which gives them enough experience to offer
quality services, they can design ways of increasing the volumes of sales and reduce on the costs of the company which I feel is the more efficient way of maintaining the culture and service quality of the company.
2. Given the characteristics of this brand, what intensity of distribution makes the most sense, and why?
Since it is a luxury brand, it should focus on a single distribution channel partner that will provide
the best services to its products and customers bringing out its values, and vision and emulating
its customer care. This will help them to organize and manage their high-end events and products in an efficient way that represents the entire business and its brand image.
