Distrubution

Question 1

Traditional / Multi Channel Benefit (5)

Answer 1

1. Choosing through Intermediaries like Wholesalers / Retailers
2. Widely available and more accessible to customers
3. Customers therefore may purchase the product
4. Inc SV
5. Link to Yellow Sheet (EOS)

Question 2

Traditional / Multi Channel Drawback (5)

Answer 2

1. Intermediaries have higher levels of buyer power
2. Can dictate the terms of the business
3. Like Lower Prices or Longer Terms of Trade Credit
4. Reduce Inflows
5. Link to Yellow Sheet (Liqudity)

Question 3

Direct / Single Channel Benefit (5)

Answer 3

1. Choosing to sell direct to customers
2. Increases control on customer experience
3. Offering better customer service
4. Differentiated
5. Link to Yellow Sheet

Question 4

Direct / Single Channel Drawback (5)

Answer 4

1. Selling direct to customers requires high investment
2. As business needs to set up own distribution network
3. Need to Purchase non current assets
4. For stores / delivery vans
5. Link to Yellow Sheet (Liquidity)