Part 1: The Coca-Cola Company has a very large and complex channel distribution system. Take a look at how the company describes its distribution system by clicking on this link:
http://www.coca-colacompany.com/our-company/the-coca-cola-system
Can you outline the indirect channel system based on the information on the website? You might want to refer to Figure 6.2 or Figure 6.3 in the main text to organize your thoughts. What value does each of the channel members provide to the end customer? What might you suggest they do differently?Part 2: Pick a product for one of the three distribution strategies (intensive, selective, or exclusive). Note your product and the distribution strategy, and then discuss why you feel the distribution strategy is most appropriate for that product based on the factors listed above in the weeks readings.
For example, Lexus automobiles are distributed selectively. Customers tend to be upper middle class who want an affordable (as they define it) luxury car that is highly dependable. Because of the service component, dealerships need to be all-inclusive for services needed for a Lexus and be as close to their target market as possible, e.g., upscale neighborhoods. But because Lexus is a car dealership, it cant be directly located in an upscale neighborhood. The car dealer needs to be able to serve a geographic area that is easy to reach and where customers are willing to drive, and the best choice may be locations visible from highways driven by upscale members of the target market as they drive between home, work, and errands. A Lexus dealership wants to be located near competitive offerings to ensure the target market considers Lexus. It also makes it easy to shop the competition and to increase the value of the brand by being associated with like products.
Do the same type of description (BUT SHORTER) for each of the three distribution strategies with a product of your choice.
Part 3: Can you think of an example of a product for which the warehouse or the method of transportation is the channel leader? You might need to do a little web searching to find examples. Think creatively for both online delivery and physical delivery.
Part 4: There is no shortage of pricing approaches, and as customers, we are exposed to all of them at some time or another in our purchasing processes. Choose one of the pricing approaches discussed in the readings and discuss a product, the pricing approach, and why you think it is the most appropriate approach for that particular product given your consumer characteristics. Be sure you understand the definition of your approach before tackling this topic.
Many of you will be tempted to use promotional pricing since it is the easiest to demonstrate. So promotional pricing is not for sale (pun intended). Pick one of the other approaches for this topic.