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

The main reasons the firm reverses their decision were profitability and brand integrity. The firm began to sell their jeans in discount stores. They sold more. However, at a lower price. So their profit did not increase that much. Because they were at discount stores, they lost their exclusiveness because a lot more people were able to afford them. This might upset loyal customers and cause them to purchase jeans elsewhere.

Do you agree with their decision?

I agree with their decision. It protects brand integrity. I love fashion. However, I don’t want something that many people will have. Although I love a good discount ( TJmaxx, Marshalls, Nordstrom Rack), I also want to feel exclusive. I believe this is why brands like Louis Vuitton and Hermes don’t sale their merchandise at discount stores or outlets.

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

I agree with the the second firm’s choice for their new watches. They are able to reach more consumers with a lower price and and generate more sales without altering their original brand’s integrity because the newer watches are under a different name. Companies to this a lot. Some examples  are: Armani & Armani Exchange, Ralph Lauren & Polo by Ralph Lauren, and   Versace and  Versus by Versace.

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

I think that many of the existing jewelry stores will sell the new watches because it would bring the stores more sales. Because they are cheaper, the store can sell more of them and the the watches would be associated with its parent company. However, high-end jewelry  stores who sell other brands such as Rolex and Cartier may not want to sell the cheaper watches do to their  clientele.

What other channels (retailers) should they also consider?

For the cheaper watches the firm should consider department stores such as Macys and Bloomingdales. They could also consider discount stores such as tj maxx.