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Chapter 14 (Marketing Mix-Place) - 18.02.21

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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Kelvin Lau
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325 views6 pages

Chapter 14 (Marketing Mix-Place) - 18.02.21

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

Uploaded by

Kelvin Lau
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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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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