Suitable intermediaries are not available

Assignment Help Operation Management

Reference no: EM131398995

Suitable intermediaries are not available A firm may have to go direct if suitable intermediaries are not available or will not cooperate. Sometimes intermediaries that have the best contacts with the target market may be hesitant to add unproven vendors or new products. For example, when Glacéau began selling its now popular Vitaminwater, wholesale distributors had no interest in carrying it. So the owner of the company delivered the bottled water directly to small retailers in New York City. Once he proved his product would sell, distributor interest grew. On the other hand, to enter the California market, Glacéau gave distribution rights to just one distributor. As a result, it was in this distributor’s interest to work closely with Glacéau to build the market. Eventually Coca-Cola purchased Glacéau; at that point Coke added many of its own distributors. Glacéau became a success by slowly building support from retailers and wholesalers, but many new products fail because the producer can’t find willing channel partners and doesn’t have the resources to handle direct distribution.2 In the United States, the Census Bureau publishes detailed data concerning wholesalers and retailers, including breakdowns by kind of business, product line, and geographic territory. Similar information is available for many other countries. It can be very valuable in strategy planning—especially to learn whether potential channel members are serving a target market. You can also learn what sales volume current intermediaries are achieving. Agree? Why?

Reference no: EM131398995

Questions Cloud

Farmers in poor countries get very little money for crops : Farmers in poor countries get very little money for crops—such as coffee, cocoa, and bananas—that they grow for export. Some consumers in prosperous nations are willing to pay retailers higher prices for “fair trade” goods so that the farmers receive..

Witnessed leader acting in an unethical manner : Without including names, describe a situation in which you have witnessed a leader acting in an unethical manner. What effect did the leader's actions have on organizational or team performance? If you have not experienced this, try to think of a tim..

Technology newness and technology familiarity : Describe the four phases of a project in your own words and outline activities in each phase. Pick a project that would have a score of 1 on the DCPI in the areas of size, organizational complexity, technology newness, and technology familiarity.

Effective marketing strategies : Despite the complexity of 21st-century commerce, success in marketing is still founded on four basic concepts: product, price, promotion, and place. This program shows how businesses incorporate the four P’s into effective marketing strategies.

Suitable intermediaries are not available : Suitable intermediaries are not available A firm may have to go direct if suitable intermediaries are not available or will not cooperate. Sometimes intermediaries that have the best contacts with the target market may be hesitant to add unproven ven..

Direct contact with customers if a firm is in direct contact : Direct contact with customers If a firm is in direct contact with its customers, it is more aware of changes in customer attitudes. It is in a better position to adjust its marketing mix quickly because there is no need to convince other channel memb..

The internet makes direct distribution easier website : The Internet makes direct distribution easier Website-based e-commerce systems and delivery services like UPS and FedEx give many firms direct access to customers whom it would have been impossible to reach in the past. Even small, specialized firms ..

Define precedent and stare decisis : Define precedent and stare decisis. Explain how precedent and stare decisis will help a trial court judge decide an issue they are facing. If you were a business owner, how would having knowledge of case law relevant to your business help guide your ..

Organizational factors such as morale-culture-motivation : Why are managerial writing skills so important to organizational factors such as morale, culture, motivation, and collaboration?

User Account

All Pages