Category Archives: Place

These posts will be added to our Student Work menu item. This category should be used for submitting posts for our Unit #11 Assignment.

Place

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

For mini-case #1, the main reason why the firm decided to reverse their decision and return to their initial channel mix was that they did not see a change or increase in profits when expanding the distribution to discount stores being that they were selling at a lower margin. Also, because they felt that by selling their products in discount stores they were changing their brands’ integrity as they mainly consisted of high quality and strongly branded jeans.

  1. Do you agree with their decision?

I do agree with their decision because I feel that the main reason why one should want to expand their distribution would be to possibly create more sales but to also have more overall profit. If there was no change in the company’s overall profit, the decision wasn’t truly benefiting them.

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

For mini-case #2, I do not agree with their choice of channel for their new watches because I believe that they could have made the same, if not more profit by selling their product through convenience stores.

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

I do not think that most of their existing jewelry store would be willing to stick and sell these new watches because eventually, they will realize that they are not making much profit and that the watches will possibly change the view on the luxury jewelry stores.

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

I think that they should consider wholesale retailers and department stores for a possible better profit.

Unit 11 – Place

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Module 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?

The main reason for reversing their decision and returning to their initial channel mix was not getting the real worth for their products by selling to such discount stores. The company feared losing its product’s integrity and not making much profit.

 

2- Do you agree with their decision?

I agree with their final decision because there was no benefit to expanding their channels and offering their product at a discount. Doing so would have resulted in low margins and compromised integrity.

 

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

No, I do not agree with this choice of channel as introducing a completely new brand name in their own stores will help in reducing the integrity of the brand and decrease sales. Loyal customers can also lose their trust in the brand.

 

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

Most of their existing jewelry stores will not be willing to stock and sell these new watches as this will affect the sales of expensive watches and will ruin their store reputation of being a store for luxurious watches

 

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

The company may consider promoting its new brand in discounted stores which fetch more customers who are price sensitive. They can also sell their watches to wholesale retailers.

 

Unit 11 – Place

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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.

Place

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  1. 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. 

  1. 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. 

  1. 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.

  1. 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. 

  1. 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.