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    Chapter 14 (Marketing Mix-Place) - 18.02.21

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    Kelvin Lau
    This document contains three case studies about companies and their distribution channel choices: Case Study 1 is about a bicycle manufacturer called TR that uses different channels for different product lines. Wholesalers distribute its cheaper "town" bicycles while specialist retailers handle its more expensive "racing" models. TR must now decide how to distribute a new electric bicycle. Case Study 2 focuses on a football manufacturer called D&D that sells directly to some country retailers and through agents in others. Management wants to add online sales but others have concerns. Case Study 3 profiles a children's clothing retailer called Pinkor that operates small shops and stalls. The owner proposes expanding mail order and online while closing some physical locations to cut

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    Chapter 14 (Marketing Mix-Place) - 18.02.21

    Uploaded by

    Kelvin Lau
    173 views6 pages
    This document contains three case studies about companies and their distribution channel choices: Case Study 1 is about a bicycle manufacturer called TR that uses different channels for different product lines. Wholesalers distribute its cheaper "town" bicycles while specialist retailers handle its more expensive "racing" models. TR must now decide how to distribute a new electric bicycle. Case Study 2 focuses on a football manufacturer called D&D that sells directly to some country retailers and through agents in others. Management wants to add online sales but others have concerns. Case Study 3 profiles a children's clothing retailer called Pinkor that operates small shops and stalls. The owner proposes expanding mail order and online while closing some physical locations to cut

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    chapter 14 (marketing mix-place)_18.02.21

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    This document contains three case studies about companies and their distribution channel choices: Case Study 1 is about a bicycle manufacturer called TR that uses different channels for different product lines. Wholesalers distribute its cheaper "town" bicycles while specialist retailers handle its more expensive "racing" models. TR must now decide how to distribute a new electric bicycle. Case Study 2 focuses on a football manufacturer called D&D that sells directly to some country retailers and through agents in others. Management wants to add online sales but others have concerns. Case Study 3 profiles a children's clothing retailer called Pinkor that operates small shops and stalls. The owner proposes expanding mail order and online while closing some physical locations to cut

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    173 views6 pages

    Chapter 14 (Marketing Mix-Place) - 18.02.21

    Uploaded by

    Kelvin Lau
    This document contains three case studies about companies and their distribution channel choices: Case Study 1 is about a bicycle manufacturer called TR that uses different channels for different product lines. Wholesalers distribute its cheaper "town" bicycles while specialist retailers handle its more expensive "racing" models. TR must now decide how to distribute a new electric bicycle. Case Study 2 focuses on a football manufacturer called D&D that sells directly to some country retailers and through agents in others. Management wants to add online sales but others have concerns. Case Study 3 profiles a children's clothing retailer called Pinkor that operates small shops and stalls. The owner proposes expanding mail order and online while closing some physical locations to cut

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 6

    Chapter 14: (Marketing Mix – Place) Case Studies

    Case Study 1:

    TR manufactures a large range of bicycles. Its models range in price from $1oo
    ‘town’ bicycles to $500 ‘SR racing’ bicycles, which are bought by many
    professional cyclists. TR uses several different distribution channels. Town
    bicycles are mass produced and sold to wholesalers. TR only sells SR racing
    bicycles through small, specialist retailers. The business has just introduced its
    first electric bicycle, but a decision has not been made about how to distribute it.
    Max, TR’s Manager, believes that direct selling is unsuitable for selling TR’s
    products.

    a. Define ‘distribution channel’. [2


    marks]

    b. Identify two benefits of TR using a wholesaler for its ‘town’ range of


    bicycles. [2
    marks]

    c. Outline two factors that TR should consider before deciding on a


    distribution channel for the electric bicycle. [4
    marks]

    1
    Chapter 14: (Marketing Mix – Place) Case Studies

    d. Explain two likely reasons why TR distributes SR racing bicycles


    through small, specialist retailers.
    [6 marks]

    e. Do you agree that direct selling is always unsuitable for distributing


    products? Justify your answer. [6
    marks]

    2
    Chapter 14: (Marketing Mix – Place) Case Studies

    Case Study 2:
    D&D manufactures footballs. The footballs are sold in sports shops around the
    world. The distribution channels D&D uses are to sell its footballs direct to
    retailers in some countries and through an agent in other countries. The
    Managing Director of D&D wants the company to start selling footballs online
    but the Marketing Director thinks there are too many problems with this
    distribution channel.

    a. Define ‘distribution channel’. [2


    marks]

    b. Identify two other examples of products which might be sold directly to


    retailers rather than using a wholesaler. [2
    marks]

    c. Outline two reasons why ‘place’ is an important part of the marketing


    mix for D&D. [4
    marks]

    3
    Chapter 14: (Marketing Mix – Place) Case Studies

    d. Explain two possible benefits to D&D of selling footballs through agents


    in other countries. [6
    marks]

    e. Do you think D&D would be better selling through a wholesaler and not
    directly to retailers? Justify your answer. [6
    marks]

    4
    Chapter 14: (Marketing Mix – Place) Case Studies

    Case Study 3:
    Pinkor is a retail chain selling children’s clothes on the market stalls and small
    shops that it owns. It buys most of its products from wholesalers. Rakesh, the
    owner, says, ‘I think we should start to sell by mail order and on the internet and
    close some of our shops to save money’.

    a. Define ‘wholesaler’. [2
    marks]

    b. Identify two disadvantages to Pinkor of buying supplies from


    wholesalers.
    [2
    marks]

    c. Outline two benefits to Rakesh of selling through several small shops


    rather than by mail order and online. [4
    marks]

    d. Explain two factors which affect Pinkor’s choice of distribution channel.


    [6
    marks]

    5
    Chapter 14: (Marketing Mix – Place) Case Studies

    e. Do you think Rakesh is right to want to change the channel of distribution


    to business uses? Justify your answer. [6
    marks]

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