Question

Step 1

Consider a time when you wanted to buy a certain product but could not find it.

What was your reaction? Why? How did the lack of availability affect your perception of the company and of the product? Did it make you want it more or did it make you frustrated so that you lost interest. Speculate on the supply chain and distribution channel strategy that the company was trying to achieve.

Step 2

Now consider a product that is widely available.

What is your perception of the product and the company? How is your perception influenced by the ubiquity of the product? Speculate on the distribution strategy and goals for the company.

Step 3

Compare and contrast your findings in the first two steps.

How did the availability of the products influence your thoughts and attitude toward the product and the company? Speculate as to whether the companies' distribution strategies have proved effective and served them well.

Step 4

In addition to discussing each of the questions in Steps 1 and 2, be sure to include the comparison between the two companies and products.

Answer 1

Step 1

Consider a time when you wanted to buy a certain product but could not find it.

What was your reaction? Why? How did the lack of availability affect your perception of the company and of the product? Did it make you want it more or did it make you frustrated so that you lost interest. Speculate on the supply chain and distribution channel strategy that the company was trying to achieve.

I was in Kuwait and I was looking for a swimming shorts from Speedo. I looked for an authorized dealer or showroom but could not find it. I researched and found out that Speedo is not having a showroom in the country. They were supplying through other local stores but stock of the product kept by such stores are slim. In my opinion, lack of availability of good brands are a concern. Speedo is the best in water sports industry and the brand name is known to all. So, despite being frustrated, my perception about the company was neutral. It may be able to purchase it on my travel to some other place. But for a customer who does not have such option, it will be frustrating. Speedo, here, is trying to achieve a selective distribution strategy by keeping a few intermediaries to sell the product. Kuwait market is flooded with expats who are not very brand conscious. This is the company’s reason for engaging such strategy.

Step 2

Now consider a product that is widely available.

What is your perception of the product and the company? How is your perception influenced by the ubiquity of the product? Speculate on the distribution strategy and goals for the company.

A product that is available everywhere is Kellogg’s cornflakes, which is an FMCG product. Since the product is available throughout the market, we have a perception that we will not be away from the product – ever. The distribution strategy employed by the company is mass distribution or intensive distribution. Since a large number of customers are there for the product, this type of marketing is good for the product.

Step 3

Compare and contrast your findings in the first two steps.

How did the availability of the products influence your thoughts and attitude toward the product and the company? Speculate as to whether the companies' distribution strategies have proved effective and served them well.

Distribution strategies are decided by the availability of consumers for the product in market. For an average customer, non-availability of a product will be frustrating and brand loyalty may be lost. But for the companies the strategies are good as they are catering to the needs of the market. For Speedo, operating a store in a market with less customers will not be profitable. For Kellogg’s, it is on the other side. Their products are well received throughout the markets, globally.

Step 4

In addition to discussing each of the questions in Steps 1 and 2, be sure to include the comparison between the two companies and products.

Speedo is a company engaging in water sports goods which is a sports niche product. It will not be purchased by everybody. But Kellogg’s being a food manufacturer has more volume of customers because of the company dealing with FMCG products. But both companies are successful in their areas of business. Speedo is a well-received brand in the sports industry because of the company’s positioning in the premium segment.