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MT1: Distribution Channels Case- Consumer Products
Goods (CPG)
Actions for ‘MT1: Distribution Channels Case- Consumer
Products Goods (CPG)’
Choose an organization: Describe Distribution
Channels, Benefits/Costs of intermediaries
Choose a firm that produces tangible products (NOT a
retailer) that are ultimately sold to final consumers and is part of a
distribution channel involving at least one other independent
organization as an intermediary and uses at least two different sales
channels (e.g., direct sales, retail).
1.Describe the organization, its target market, its
positioning and its current competitive situation. Also discuss the
products that it produces (NOTE: If the company is very large and
produces many diverse product lines, narrow focus to just one division or
product line of that company).
2.Classify and describe the multi-channel distribution
system for the product line and assess the appropriateness of its design
in relation to its desired service output levels (e.g., lot size, waiting
time, spatial convenience,…).
3.Discuss how the organization benefits by using one
or more intermediaries.
4.Describe the costs and potential risks that the firm
must encompass by using these intermediaries. Explain how the distribution system
does or could operate as either a vertical (VMS) or horizontal (HMS)
marketing system and the benefits associated with that system strategy,
or why a VMS or HMS doesn’t make sense for the channel.
Please give a great deal of consideration to your
selection of the organization and the product that will be used in your
case. Your selection must meet the following criteria:
* The organization should produce a physical product
that is eventually sold to final consumers.
* The organization must be part of a distribution
system that includes a minimum of one intermediary.
The organization must sell its products through two or
more channels (e.g., retail, online sales, telephone sales, sales force)
MT3: E-Commerce Distribution Channels
 Actions
for ‘MT3: E-Commerce Distribution Channels’
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Amazon is the world’s largest
e-commerce company while Walmart is the undisputed world’s largest retailer.
The distribution channels that
these behemoths employed were distinctly different in the past (clicks vs.
bricks) but are now starting to merge.
Amazon is rapidly building a
network of distribution centers across the country and many observers believe
their ultimate goal is to provide home delivery to consumers the same day that
it is ordered.
Walmart is expanding its own
e-commerce capabilities and leveraging a world-class supply chain system and
enormous retail store presence with the goal of making products ordered online
available for pick-up by consumers at the closest Walmart store on the day it
is ordered.
Which approach do you believe
will be the most successful?
Can Amazon really pull off
same-day delivery across the nation (not just select urban markets)?
Will Amazon overtake Walmart as
the world’s largest retailer (they still have a long way to go)?
Support your response with
research.
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3. Personal
Application
Actions for ‘Personal Application’
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Choose any other organization
that you are familiar with for this week’s PA assignment
Describe the organization’s
channel design.
Does the company utilize
Integrated Logistics Systems?
How would the following Channel Margins
learning tool from the Harvard Business School be useful for your organization?
Tools available: http://hbsp.harvard.edu/multimedia/flashtools/channelmargins/index.html
