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Distribution Channels (25 Apr 2007)


Even an excellent product requires a proper distribution channel, or "place", to reach target customers, so that the business can further expand. There are 3 cases in this episode. We will review how they develop their distribution channels after identifying target customers.Case 1: A company producing mid- to high-end window covering products in China and America takes a manufacturing role and hands the sales to retailers. It also participates in various exhibitions and fairs in order to directly obtain customers ’ opinions about the products, and assess their needs without entirely relying on resellers ’ reflections. It helps the company to make the products that match customers ’ needs. Case 2: The company is an agent of door locks and lamps of foreign brands. Since it has the expertise on locks and understands customers ’ needs, it can provide detailed information to clients.. Besides wholesaling to resellers, it has also set up retail shops. For the lamp business, it has taken into consideration the fact that profit margin is not high enough for wholesalers, so it directly sells at its own shops. It has currently expanded business by manufacturing car locks and lamps in the Mainland. The target is to sell the products in China and export to foreign countries. Case 3: The company is an agent of foreign natural organic skin care products and sells it directly to customers. Although the company is small, the founder is a registered nutritionist and provides beauty consultation services to customers with her expertise. The company does not have any retail shops, but it actively develops marketing channels, including setting up promotion booths in Japanese-funded department stores and large-scale chain stores. It also organises talks on nutritional, organic and natural beauty information in Hong Kong and China in order to absorb more customers.

Wins on Marketing
Publish Date: 
Wednesday, April 25, 2007
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