Designing A New Manufacturing Company Of Motor Vehicles Entering The Motor Scooter Market

1351 Words6 Pages
Company S is a new manufacturing company of motor vehicles entering the motor scooter market with a higher-cost scooter with better fuel economy than that of leading competitors. With the company’s executive’s intent to distribute their products using existing scooter dealerships, that have strong loyalties to competitors’ products that they already carry, as intermediaries, a strong distribution-programming model with innovative strategies is required. Therefore, within this essay you will find the innovative channeling strategies that’ll enable the success of Company S’s intent to motivate intermediaries as part of the distribution-programming plan. First and foremost, selling through indirect distribution channels to the end consumer…show more content…
Having a limited distribution channel further allows for the manufacturer to pay more attention to its channel partners, which allows for the partners to become more efficient at distributing product. When a channel partner is more efficient, the ultimate goal of profitability for the manufacturer and channel partner thus is met. Ten times out of ten a product distributor will go with the partnership that guarantees it profitability over one that doesn’t. Advantages: • Greater margins • Minimizes competition • More control of product and market Disadvantages: • High risk with betting on limited amount of distributors • Only appropriate for higher price and margins and lower volume of products • Hard to build a high level of brand image if not yet built. Evaluation method: • The effectiveness of this strategy will be evaluated on the demand for the manufacturers product in the area of the channel outlets based off its sales and profitability. Induce More Participation Of Channel Partners in Decision Making (Co-Op Arrangements): Inducing more participation of channel partners in decision-making also known as a cooperative arrangement is pretty simple and straightforward. This type of strategy may be achieved by giving partners opportunities to subsidize decisions of the manufacturer as far as pricing, promoting, and
Open Document