1. 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 why the firm reversed their decision and returned to their initial channel mix was because they were not making a profit off of expanding their marketplace to discount stores, therefore affecting the brand’s image that could have changed their customer’s perspective on the brand overall, for example, quality.

2. Do you agree with their decision?

I agree with their decision because although they were making additional sales from the discount stores it was not enough for them to be profitable, and the brand could have a certain aesthetic they want their company to represent/match, thus by selling their items at discount stores they were concerned with the brand’s image as well.

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

I disagree with their choice of channel for their new watches because the jewelry stores and their customers most likely expect good quality products, and not cheaply made. They should distribute to a better marketplace that sells more affordable products.

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

I think their existing jewelry stores will not be willing to stick and sell the new watches because the stores could have a different target audience. Therefore, the jewelry stores may not make a profit off of the cheap watches versus the already well-known Swiss watches.

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

They should consider retailers who have similar target audiences. The manufacturers are more likely to be profitable by expanding their marketplaces at places like discount stores since customers would be more willing to buy the products.