Describe Distribution Channels, Benefits/Costs of intermediaries

Distribution Decisions
Paper , Order, or Assignment Requirements

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).

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.
Please give a great deal of consideration to your selection of the organization and the product that will be used in your case. Your selection must meet the following criteria:
* The organization should produce a physical product that is eventually sold to final consumers.
* The organization must be part of a distribution system that includes a minimum of one intermediary.
The organization must sell its products through two or more channels (e.g., retail, online sales, telephone sales, sales force).
2. Choose an organization that creates products that are sold to other businesses and uses at least two different sales channels (the organization may or may not use any intermediaries).
1. Briefly describe the organization, its target market, its competitive situation, and the products that it produces (NOTE: If the company is very large and produces many diverse product lines, you should narrow your 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. Explain how the distribution system does or could operate as an integrated logistics system (i.e., use of information technology to accomplish and/or coordinate such logistical processes as ordering, warehousing, inventory, shipping) and the benefits associated with that system strategy, or why a ILS doesn’t make sense for the organization.
Please give a great deal of consideration to your selection of the organization and the product that will be used in your case. Your selection must meet the following criteria:
• The organization should produce physical product that is eventually sold to businesses (if it sells to both businesses and consumers, just concentrate on the business-to-business channel).
• The organization must sell its products through two or more channels (e.g., online sales, telephone sales, sales force).
3. Amazon is the world’s largest e-commerce company while Walmart is the undisputed world’s largest retailer.
The distribution channels that these behemoths employed were distinctly different in the past (clicks vs. bricks) but are now starting to merge.
Amazon is rapidly building a network of distribution centers across the country and many observers believe their ultimate goal is to provide home delivery to consumers the same day that it is ordered.
Walmart is expanding its own e-commerce capabilities and leveraging a world-class supply chain system and enormous retail store presence with the goal of making products ordered online available for pick-up by consumers at the closest Walmart store on the day it is ordered.
• Which approach do you believe will be the most successful?
• Can Amazon really pull off same-day delivery across the nation (not just select urban markets)?
• Will Amazon overtake Walmart as the world’s largest retailer (they still have a long way to go)?
Support your response with research.
4. Most of us purchase the majority of our food products at local supermarkets.
Pick a chain with stores in your local area that you are familiar with and describe it in the terms presented in Chapter 18 of the text.
• Address the following areas:
• Retailer Type (see Table 18.1)
• Service Level
• Target Market- who is the chain trying to attract the most?
• Product Assortment
• Price
• Atmosphere
• Private Label Offerings
Personal Application
Choose any organization with a distribution function.
• Describe the organization’s channel design.
• Does the company utilize Integrated Logistics Systems?
• How would the following Channel Margins learning tool from the Harvard Business School be useful for your organization?

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