Unit 11 – Place

1- For the first example, what were the main reasons that the firm reversed their decision and returned to their initial channel mix?

  •  Because there was not actual change in the company’s profit overall
  •  Because there were concerned about the integrity of their brand after mixing the distribution channels.

2- Do you agree with their decision?

  • I agree with their decision because there is no point of mixing channels and possibly hurting their brand’s integrity if there is no real profit.

3- In the second example, do you agree with their choice of channel for their new watches? Why?

  • I don’t agree with their choice of channel because even though it might be cheaper to distribute to their existing traditional channels, the overall profit won’t be as much as it would have been if they distributed to convivence stores.

4- Do you think that most of their existing jewelry stores will be willing to stick and sell these new watches?

  • I don’t think they will stick to selling these watches at their existing stores because soon they will realize that they are not making good profit.

5- What other channels (retailers) should they also consider?

  • I think they can profit by selling their watches to department stores, wholesale retailers and other businesses.

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