Marketing homework
For the first example, what were the main reasons that the firm reversed their decision and returned to their initial channel mix?
- They had to reverse their decision because it did prove to increase sales but at a lower margin.
- It could have possibly hurt there brand as they produced low costing jeans so it was smart to revert back to the traditional way.
2- Do you agree with their decision?
- I agree, brand integrity is important and lowering your cost could really turn away majority of their customers.
- Having to expand their channels would have hurt them in the long run.
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 think that they won’t because in the long run they will see a decrease of there premium watches being sold.
5- What other channels (retailers) should they also consider?
- For their watches they could consider agents, retailers and wholesalers. This could prove to increase sales not only in their existing jewelry but also the new watches.