The core objective of this discussion is to broaden students’ view regarding the concept of channel performance and its vitality in daily business operations.
After attempting this case, students will be able to learn the importance of distribution channels and their practical implementation in business growth.
Classic Water, a mineral water company has recently started its business operations and looking forward for suitable ways to cater major business expansion regions and maximize its clientele. Being a newly launched company, Classic Water decides to hire external distribution channels because the company does not have enough resources to purchase its own vehicles. Also, it would cost too much for this company to hire delivery persons for distribution purpose. Mr. Ali, having 10-years’ experience in the field of distribution, argues since Classic Water is on initial stage of the business, thus, there is a need to setup company’s own distribution channels. Distribution channels play a vital role in revenue generation of any organization. Therefore, the objective of any company should be to configure its channels in such a way that it will not only improve its performance but also amplify its revenue generation. Before doing agreement with any logistic firm, the Classic Water must check its reputation in the market, i.e. timely delivery, efficiency, and security of products, etc. If a company is unable to reach its potential customers, it will not be able to expand its sales. In case of Classic water, it is mandatory that it should look forward to the cost effective and pocket friendly ways to reach its potential customers, being new to the market and having limited resources.
Point of Discussion:
Being the logistic manager of Classic Water, which distribution channel do you think would be more appropriate for Classic Water, whether “Direct” or “Indirect” and why? Explain in detail.
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