CHAPTER 14 ASSIGNMENT
Name: Kavya Shah
Section: 01
Date: 12 Nov 2023
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? To expand its sales channel while maintaining the brand's identity and level of service, the brand could consider:
a.
Selective Retail Partnerships: Instead of mass-market retailers, the brand can carefully select specific retail partners that align with their luxury positioning. These partners should have a similar target audience and a commitment to providing excellent customer service.
b.
Online Sales Platform: Establish an official online store or website to reach a broader audience. This allows customers to browse and purchase products from the comfort of their own homes. The website should reflect the brand's luxury image and offer a seamless online shopping experience.
c.
Pop-up Stalls and Events: Organize exclusive events or set up temporary pop-up shops in
high-end locations. This allows the brand to interact directly with customers and maintain control over the sales experience.
2. Given the characteristics of this brand, what intensity of distribution makes the most sense, and why?
Given the characteristics of this brand, an Intensive Distribution strategy would make the most sense. Intensive distribution entails making the product accessible in a diverse array of stores and shops, ensuring widespread availability to customers across numerous locations. This broad reach enhances the likelihood of customers easily finding the product whenever they seek it. This strategy fosters a consistent connection between the customer and the product, fortifying their loyalty to the company.
Another strategy that can be used would be Selective Distribution strategy This strategy involves limiting the number of retail partners to maintain a level of exclusivity while still expanding the brand's market presence. Here's why it's suitable:
