Question

Explain in detail your channel organization and make sure it includes at least one direct and...

Explain in detail your channel organization and make sure it includes at least one direct and at least one indirect channel.

For the indirect channels, explain in detail the types of channel partners and their roles.

Include an image of the channel organization chart in the appendix.

My product is pepper spray

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Answer #1

Channel organization

A marketing channel is used for the supply of products or services to customers who are scattered across the market. A marketing channel helps an organization in transferring ownership of products from the manufacturer to consumers. It also helps a company to improve its customer reach as well as company revenue. An efficient channel organization will be helpful for an organization to build its customer relationships. A marketing channel is also known as a distribution channel and it makes the products available to the end-customer.

Channel organization options of pepper spray

Here the product is pepper spray used mainly for containing riot, controlling the crowd and also for the purpose of self-defense. There are direct and indirect marketing channels available in taking products to the end customer. Different channel options for the selling of pepper spray are given below.

Direct Channels

Under the direct distribution, channel pepper spray will be passing directly from the manufacturer to the end-user. Here we are able to eliminate the presence of intermediaries that is the reason why it is also known as the zero level distribution channel. It can be done by door-to-door sales, direct Online Selling, etc.

Producer → Consumer

Option 1 - Direct Online Selling

Here we use the power of internet in reaching customers without opening even a retail shop. Here the customer will be placing pepper spray orders online and we provide the products via post, courier, etc.

Option 2 - Door-to-Door Sales

It is a traditional method for distributing a product. Here the company has to hire a salesman who goes out and directly meets customers and sells pepper spray.

Indirect Channels

Under Indirect channels of distribution, we depend on various intermediaries to take our products to customers.

Option 1 - One Level Distribution Channel

One Level Distribution Channel is a type of indirect distribution channel where there is only one intermediary between the manufacturer of pepper spray and the user of pepper spray. Here the intermediary buys pepper spray from the producer and sells it to the customer. In most cases, the intermediary will be known as the retailer.

Producer → Retailer → Consumer

Option 2 - Two-Level Distribution Channel

There will be two different intermediaries in between the producer and customer under a two-level distribution channel. Here the producer sells pepper spray to a wholesaler and he then sells it to a retailer from there it reaches a consumer.

Producer → Wholesaler → Retailer → Consumer

Channel partners and their roles

Wholesaler

Wholesalers buy the pepper spray in bulk quantity at a lower rate from the manufacturing company. They store the purchased pepper spray in a warehouse and sell them to retailers in small quantities for a profit.

Retailers

Retailers buy pepper spray from a wholesaler and then sells it to the final consumer in very small quantities for a profit.

Summery

For a pepper spray manufacturer, the suitable channel of distribution will be a two-level channel. It helps the firm to reach out to more number of customers. The direct channel is suitable for perishable products and it is capable only to cover a shorter geographical distance.

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