- For the first example, what were the main reasons that the firm reversed their decision and returned to their initial channel mix?
For the first example the main reasons that the firm reversed their decision were that there was no real change in their profitability. And they were concerned with the impact that their new distribution mix was having on their brands integrity. The stores need to be in a place where there’s a lot of people that are interested in high-quality jeans.
- Do you agree with their decision?
I do agree with their decision because their profitability wasn’t increasing and they were concerned that their distribution mix was impacting their brands integrity.
- In the second example, do you agree with their choice of channel for their new watches? Why?
In the second example, I don’t agree with their choice of channel for their new watches which are their own cheap digital watches because they want to distribute them through jewelry stores at premium prices. Instead they should sell their new cheap digital watches at convenience stores.
- Do you think that most of their existing jewelry stores will be willing to stick and sell these new watches?
I think most of their existing jewelry stores will not be willing to stick and sell the new watches because of the difference between premium prices and cheap prices. It will look bad if you go into the store and you expect to see only premium prices but then you see cheap prices, which will make you question why they are selling such different products. Instead the cheap digital watches should be sold at convenience stores.
- What other channels (retailers) should they also consider?
I think other channels (retailers) that should be considered are B2C and wholesalers considering that they are new cheap digital watches. And they could quickly see an increase in profitability.
