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Principles of Marketing (MGT301) Fall, 2014
Graded Discussion Board No. 2
Due Date: February 16, 2015
Total Marks: 05
Topic: Number of Channel Levels
NOTE: There is no grace period in case of GDB
The case will enable the students to understand and apply strategies so that they could manage the difficulties that a business startup and distribution phenomena faces.
There was a time when women were operating businesses as a way of supplementing income or in many cases they were simply trying to avoid poverty and making up for the loss of a spouse. But; with the advent of new progressions in the business world, trend is getting changed and women are now doing businesses as a profession.
A group of five women living in the rural area of Pakistan had started with a small set up of making embroidery suits three years ago, they had been making suits for a reseller who is living in the urban area; he bought suits from these women at lesser price and sold them in the urban market at a very high profit margin. It’s been more than three years now and these women are earning very less amount of their hard work; to get rid of this situation they started to analyze the way through which they could maximize their profit margin as in return of their extremely hard and devoted work. Finally they came to a conclusion that they should take the initiative of selling their distinguished work to the urban market themselves so that they could earn maximum profit and make more money as in return of their enthusiastic work.
Point of discussion:
Considering this scenario; which level(s) of distribution channel these women should opt so that their dependency on that reseller could be eliminated and they could competently sell their product in the urban regions? (05 Marks)
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Dear all please, shares yours ideas here it not difficult but need of minute concentration
focus on following (only 02, or 03)
Selling directly to consumers
Itinerants Fixed Shop
General store or variety store
Single line store
Asif Bhai, great effort and very useful information. Thanks
Yes i agree that selling directly to customers for these ladies would be difficult. So No-1 (selling directly to customers) is out.
Retailers would also get some profit margin and would result in less profit margin for these ladies. So no-2 (retailers) would be less attractive.
No-3 (Itinerants fixed shop) appeals a lot to get maximum profit margin. They can introduce their own out let in the urban areas and place their products there to sell them directly to the end users. Like Junaid Jamshed garments etc.
thanks@M.Asif @Malik Shakeel @ROSALI :)
yr koi final solution btao
dear read the posted file, solution also include in it
I little disagreed with Itinerants fixed shop channel....It is because its just same like direct channel....These are ladies and not business girls, they are only embroidery makers and they want best channel for distribution their products. In my view, the best channel is retailer, the middlemen. The retailer channel less irritating than direct channel and much profitable than using reseller channel.
What is the difference between retailer & reseller?
A retailer is basically a store where customers come in and buy products, the most common type of business.
A reseller is a person or company who simply buys products and tries to sell it to people without necessarily having an establishment.
i need complete solution .. plz post the complete s