Marketing Channel Analysis
Essay by Alya1234 • November 7, 2018 • Research Paper • 5,204 Words (21 Pages) • 713 Views
Marketing Channel Analysis
Name of the University: Swinburne University
Name of the Student: Alya, Tess and Tara
Authors Note:
Executive Summary
The development of possible alternative channel structures has been selected for Driza-Bone in order to stretch its brand through offering clothing accessories in Australia. The possibilities on three dimensions such as number of levels, intensity along with type of intermediaries will be evaluated. Considering all the channel alternatives based on number of levels, type of intermediaries and intensity it can be considered important for ensuring product success.Selection of the optimum capital structure is considered by Driza-Bone and the justification for such selection will also be considered in facilitating the company to expand its brand all over Australia. The paper also revealed that Banks, local real estate dealers, independent consultations, internet, and business databases along with direct mail solicitations can serve as the prospective channel members of the clothing brand.
Table of Contents
Alternative Channel Structures 3
Selection of Optimal Channel Structures 5
Criteria for Recognizing Prospective Channel Members 7
References 9
Alternative Channel Structures
The development of possible alternative channel structures has been selected for Driza-Bone in order to stretch its brand through offering clothing accessories in Australia. The possibilities on three dimensions such as number of levels, intensity along with type of intermediaries will be evaluated. Considering all the channel alternatives based on number of levels, type of intermediaries and intensity it can be considered important for ensuring product success.
First Issue
- Number of Levels: Moreover, the number of levels within the business channel can range from the direct ones that include manufacturers to users and can even go up to five levels.
- Intensity:Intensity at various channel levels for Driza-Bone can be segmented into intensive, selective as well as exclusive. Such channel for this women range raincoats can be intensive that can consider including effectiveness-based technologies along with well-designed websites that will not require performing necessary distribution tasks such as picking, packing, stocking and tracking a huge number of orders on everyday basis.
- Type of Intermediaries:In increasing its brand reach in the market, the brand must consider implementing electronic and online auction as a type of intermediary that can offer a wide range of outlets for its consumers (Chryssochoidis 2015). Based on the fact the company is recommended to follow a 2 level direct structure that will be carried out on the online medium.
Second Issue-
- Number of Levels:The brand can also consider developing a number of “state-of-art warehouses” along with hiring a number of people to carry out the simple distribution tasks (Gupta and Gentry 2018).
- Intensity:On the other hand, as mentioned in the type of intermediary that can be selected by Driza-Bone brand is online auction strategy. Selling or distributing goods through online auctions can facilitate the company in eliminating the presence of older product models and dated styles (Lancaster and Massingham 2017).
- Type of Intermediaries: The items distribution strategies explained above can be used by Driza-Bone in selling their products in as many outlets as possible. This distribution channel structure can be used by the brand for the reason that it can facilitation offering certain convenience products of the band such as a wide range of women range raincoats (Ko, Ko and Chun 2017). The recommendation is to implement a three level structure and the third a four level structure – manufacturer – wholesaler – agent – retailer.
Third Issue
- Number of Levels: The warehouse distributors can also be employed by the brand that will have all the capability to perform the distribution tasks that can be attained by producers.
- Intensity: Extensive intensity is used in which there will be a selective distribution pattern. Just one intermediary will be selected in this intensity selection as it might apply to all the retail intermediaries of Driza-Bone.
- Type of Intermediaries: The web also can offer the brand will the opportunity to develop the company’s regional or domestic consumers for all its offered women range raincoats all through Australia and as the company can ship its offerings it can also sell it though auction.
Fourth Issue
- Number of Levels: Speciality goods is possible to e offered by the company and use of intensive level can be used as it can serve as a major factor in reflecting a company’s overall strategies and corporate objectives.
- Intensity: Intensive distribution channel can be used in this brand and many consumer convenience goods and industrial opeaing supplies fit this organization.
- Type of Intermediaries: The distribution channel that will be used is very high selected distribution pattern.
Selection of Optimal Channel Structures
Selection of the optimum capital structure is considered by Driza-Bone and the justification for such selection will also be considered in facilitating the company to expand its brand all over Australia (Moreno-Gavara and Jiménez-Zarco 2016).
[pic 3]
Figure 1: Distribution Channel Structure of Raincoats
(Source: Authors Creation)
The financial cost management for the selected distribution for the brand has been indicated below:
Driza-Bone brand | |||||||||||
Tradeshow Budget | |||||||||||
Tradeshow Name | |||||||||||
Tradeshow Dates | |||||||||||
Tradeshow City | |||||||||||
|
|
|
|
|
|
|
|
| This Year's | This Year's |
|
|
| This Show |
| This Show |
| Budget As | Actual As | Average | |||
|
| This Year |
| Last Year |
| % of Total | % of Total | Cost % | |||
Item |
| Budget | Actual | Difference | Difference % |
| Actual |
| Cost | Cost | Benchmark |
|
|
|
|
|
|
|
|
|
|
|
|
SPACE RENTAL: |
|
|
|
|
|
|
|
|
|
|
|
Distribution intermediary |
| $ 10,000.00 | $ 9,000.00 | $ 1,000.00 | 10.0% |
| $ 1,00,000.00 |
| 34.8% | 35.1% |
|
Online auction |
| 9,000.00 | 7,500.00 | 1,500.00 | 16.7% |
| 2,00,000.00 |
| 31.4% | 29.2% |
|
Meeting Rooms |
| 8,500.00 | 8,000.00 | $ 500.00 | 5.9% |
| $ 3,00,000.00 |
| 29.6% | 31.2% |
|
Other |
| 1,200.00 | 1,150.00 | 50.00 | 4.2% |
| 4,00,000.00 |
| 4.2% | 4.5% |
|
Subtotal |
| 28,700.00 | 25,650.00 | 3,050.00 | 10.6% |
| 10,00,000.00 |
| 100.0% | 100.0% | 39% |
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT DESIGN: |
|
|
|
|
|
|
|
|
|
|
|
Design |
| $ 10,000.00 | $ 9,000.00 | $ 1,000.00 | 10.0% |
| $ 1,00,000.00 |
| 34.8% | 35.1% |
|
Construction |
| 9,000.00 | 7,500.00 | 1,500.00 | 16.7% |
| 2,00,000.00 |
| 31.4% | 29.2% |
|
Refurbishing |
| 8,500.00 | 8,000.00 | $ 500.00 | 5.9% |
| $ 3,00,000.00 |
| 29.6% | 31.2% |
|
Graphics |
| 1,200.00 | 1,150.00 | 50.00 | 4.2% |
| 4,00,000.00 |
| 4.2% | 4.5% |
|
Packing |
| 28,700.00 | 25,650.00 | 3,050.00 | 10.6% |
| 10,00,000.00 |
| 100.0% | 100.0% | 39% |
Storage |
| $ 10,000.00 | $ 9,000.00 | $ 1,000.00 | 10.0% |
| $ 1,00,000.00 |
| 34.8% | 35.1% |
|
Insurance |
| 9,000.00 | 7,500.00 | 1,500.00 | 16.7% |
| 2,00,000.00 |
| 31.4% | 29.2% |
|
Display Materials |
| 8,500.00 | 8,000.00 | $ 500.00 | 5.9% |
| $ 3,00,000.00 |
| 29.6% | 31.2% |
|
Installation & Dismantle |
| 1,200.00 | 1,150.00 | 50.00 | 4.2% |
| 4,00,000.00 |
| 4.2% | 4.5% |
|
Insurance |
| 28,700.00 | 25,650.00 | 3,050.00 | 10.6% |
| 10,00,000.00 |
| 100.0% | 100.0% | 39% |
Tool Box Supplies |
| $ 10,000.00 | $ 9,000.00 | $ 1,000.00 | 10.0% |
| $ 1,00,000.00 |
| 34.8% | 35.1% |
|
Other |
| 9,000.00 | 7,500.00 | 1,500.00 | 16.7% |
| 2,00,000.00 |
| 31.4% | 29.2% |
|
Subtotal |
| 8,500.00 | 8,000.00 | $ 500.00 | 5.9% |
| $ 3,00,000.00 |
| 29.6% | 31.2% |
|
|
| 1,200.00 | 1,150.00 | 50.00 | 4.2% |
| 4,00,000.00 |
| 4.2% | 4.5% |
|
TRANSPORTATION (to & from): |
| 28,700.00 | 25,650.00 | 3,050.00 | 10.6% |
| 10,00,000.00 |
| 100.0% | 100.0% | 39% |
Freight |
| $ 10,000.00 | $ 9,000.00 | $ 1,000.00 | 10.0% |
| $ 1,00,000.00 |
| 34.8% | 35.1% |
|
Drayage |
| 9,000.00 | 7,500.00 | 1,500.00 | 16.7% |
| 2,00,000.00 |
| 31.4% | 29.2% |
|
Customs & Brokerage |
| 8,500.00 | 8,000.00 | $ 500.00 | 5.9% |
| $ 3,00,000.00 |
| 29.6% | 31.2% |
|
Other |
| 1,200.00 | 1,150.00 | 50.00 | 4.2% |
| 4,00,000.00 |
| 4.2% | 4.5% |
|
Subtotal |
| 28,700.00 | 25,650.00 | 3,050.00 | 10.6% |
| 10,00,000.00 |
| 100.0% | 100.0% | 39% |
|
|
|
|
|
|
|
|
|
|
|
|
SHOW SERVICES: |
|
|
|
|
|
|
|
|
|
|
|
Electrical |
| $ 10,000.00 | $ 9,000.00 | $ 1,000.00 | 10.0% |
| $ 1,00,000.00 |
| 34.8% | 35.1% |
|
Plumbing |
| 9,000.00 | 7,500.00 | 1,500.00 | 16.7% |
| 2,00,000.00 |
| 31.4% | 29.2% |
|
Janitorial |
| 8,500.00 | 8,000.00 | $ 500.00 | 5.9% |
| $ 3,00,000.00 |
| 29.6% | 31.2% |
|
Security |
| 1,200.00 | 1,150.00 | 50.00 | 4.2% |
| 4,00,000.00 |
| 4.2% | 4.5% |
|
Audiovisual |
| 28,700.00 | 25,650.00 | 3,050.00 | 10.6% |
| 10,00,000.00 |
| 100.0% | 100.0% | 39% |
Internet |
| $ 10,000.00 | $ 9,000.00 | $ 1,000.00 | 10.0% |
| $ 1,00,000.00 |
| 34.8% | 35.1% |
|
Equipment Rental |
| 9,000.00 | 7,500.00 | 1,500.00 | 16.7% |
| 2,00,000.00 |
| 31.4% | 29.2% |
|
Furniture Rental |
| 8,500.00 | 8,000.00 | $ 500.00 | 5.9% |
| $ 3,00,000.00 |
| 29.6% | 31.2% |
|
Carpet |
| 1,200.00 | 1,150.00 | 50.00 | 4.2% |
| 4,00,000.00 |
| 4.2% | 4.5% |
|
Riggers |
| 28,700.00 | 25,650.00 | 3,050.00 | 10.6% |
| 10,00,000.00 |
| 100.0% | 100.0% | 39% |
Exhibitor Badges/Registration |
| $ 10,000.00 | $ 9,000.00 | $ 1,000.00 | 10.0% |
| $ 1,00,000.00 |
| 34.8% | 35.1% |
|
Florist/Plant Rental |
| 9,000.00 | 7,500.00 | 1,500.00 | 16.7% |
| 2,00,000.00 |
| 31.4% | 29.2% |
|
Catering |
| 8,500.00 | 8,000.00 | $ 500.00 | 5.9% |
| $ 3,00,000.00 |
| 29.6% | 31.2% |
|
Photography |
| 1,200.00 | 1,150.00 | 50.00 | 4.2% |
| 4,00,000.00 |
| 4.2% | 4.5% |
|
Other |
| 28,700.00 | 25,650.00 | 3,050.00 | 10.6% |
| 10,00,000.00 |
| 100.0% | 100.0% | 39% |
Subtotal |
| $ 10,000.00 | $ 9,000.00 | $ 1,000.00 | 10.0% |
| $ 1,00,000.00 |
| 34.8% | 35.1% |
|
|
| 9,000.00 | 7,500.00 | 1,500.00 | 16.7% |
| 2,00,000.00 |
| 31.4% | 29.2% |
|
TRAVEL & ENTERTAINMENT: |
| 8,500.00 | 8,000.00 | $ 500.00 | 5.9% |
| $ 3,00,000.00 |
| 29.6% | 31.2% |
|
Staff Salaries |
| 1,200.00 | 1,150.00 | 50.00 | 4.2% |
| 4,00,000.00 |
| 4.2% | 4.5% |
|
Temporary Staff |
| 28,700.00 | 25,650.00 | 3,050.00 | 10.6% |
| 10,00,000.00 |
| 100.0% | 100.0% | 39% |
Staff Transportation |
| $ 10,000.00 | $ 9,000.00 | $ 1,000.00 | 10.0% |
| $ 1,00,000.00 |
| 34.8% | 35.1% |
|
Meals & Entertainment |
| 9,000.00 | 7,500.00 | 1,500.00 | 16.7% |
| 2,00,000.00 |
| 31.4% | 29.2% |
|
Lodging/Accomodations |
| 8,500.00 | 8,000.00 | $ 500.00 | 5.9% |
| $ 3,00,000.00 |
| 29.6% | 31.2% |
|
Staff Attire |
| 1,200.00 | 1,150.00 | 50.00 | 4.2% |
| 4,00,000.00 |
| 4.2% | 4.5% |
|
Other |
| 28,700.00 | 25,650.00 | 3,050.00 | 10.6% |
| 10,00,000.00 |
| 100.0% | 100.0% | 39% |
Subtotal |
| $ 10,000.00 | $ 9,000.00 | $ 1,000.00 | 10.0% |
| $ 1,00,000.00 |
| 34.8% | 35.1% |
|
|
| 9,000.00 | 7,500.00 | 1,500.00 | 16.7% |
| 2,00,000.00 |
| 31.4% | 29.2% |
|
ADVERTISING & PROMOTION: |
| 8,500.00 | 8,000.00 | $ 500.00 | 5.9% |
| $ 3,00,000.00 |
| 29.6% | 31.2% |
|
Print Advertising |
| 1,200.00 | 1,150.00 | 50.00 | 4.2% |
| 4,00,000.00 |
| 4.2% | 4.5% |
|
Customer Hospitality |
| 28,700.00 | 25,650.00 | 3,050.00 | 10.6% |
| 10,00,000.00 |
| 100.0% | 100.0% | 39% |
Sponsorships |
| $ 10,000.00 | $ 9,000.00 | $ 1,000.00 | 10.0% |
| $ 1,00,000.00 |
| 34.8% | 35.1% |
|
Guest Passes |
| 9,000.00 | 7,500.00 | 1,500.00 | 16.7% |
| 2,00,000.00 |
| 31.4% | 29.2% |
|
Press Conference |
| 8,500.00 | 8,000.00 | $ 500.00 | 5.9% |
| $ 3,00,000.00 |
| 29.6% | 31.2% |
|
Press Kits |
| 1,200.00 | 1,150.00 | 50.00 | 4.2% |
| 4,00,000.00 |
| 4.2% | 4.5% |
|
Radio & TV |
| 28,700.00 | 25,650.00 | 3,050.00 | 10.6% |
| 10,00,000.00 |
| 100.0% | 100.0% | 39% |
Collateral Material |
| $ 10,000.00 | $ 9,000.00 | $ 1,000.00 | 10.0% |
| $ 1,00,000.00 |
| 34.8% | 35.1% |
|
Direct Mail |
| 9,000.00 | 7,500.00 | 1,500.00 | 16.7% |
| 2,00,000.00 |
| 31.4% | 29.2% |
|
Mailing List Rental |
| 8,500.00 | 8,000.00 | $ 500.00 | 5.9% |
| $ 3,00,000.00 |
| 29.6% | 31.2% |
|
Catalogues/Guides |
| 1,200.00 | 1,150.00 | 50.00 | 4.2% |
| 4,00,000.00 |
| 4.2% | 4.5% |
|
Promotional Products |
| 28,700.00 | 25,650.00 | 3,050.00 | 10.6% |
| 10,00,000.00 |
| 100.0% | 100.0% | 39% |
Agency Fee |
| $ 10,000.00 | $ 9,000.00 | $ 1,000.00 | 10.0% |
| $ 1,00,000.00 |
| 34.8% | 35.1% |
|
Internet |
| 9,000.00 | 7,500.00 | 1,500.00 | 16.7% |
| 2,00,000.00 |
| 31.4% | 29.2% |
|
Other |
| 8,500.00 | 8,000.00 | $ 500.00 | 5.9% |
| $ 3,00,000.00 |
| 29.6% | 31.2% |
|
Subtotal |
| 1,200.00 | 1,150.00 | 50.00 | 4.2% |
| 4,00,000.00 |
| 4.2% | 4.5% |
|
|
| 28,700.00 | 25,650.00 | 3,050.00 | 10.6% |
| 10,00,000.00 |
| 100.0% | 100.0% | 39% |
OTHER: |
|
|
|
|
|
|
|
|
|
|
|
Exhibit Staff Training |
| $ 10,000.00 | $ 9,000.00 | $ 1,000.00 | 10.0% |
| $ 1,00,000.00 |
| 34.8% | 35.1% |
|
Other |
| 9,000.00 | 7,500.00 | 1,500.00 | 16.7% |
| 2,00,000.00 |
| 31.4% | 29.2% |
|
Subtotal |
| 8,500.00 | 8,000.00 | $ 500.00 | 5.9% |
| $ 3,00,000.00 |
| 29.6% | 31.2% |
|
|
| 1,200.00 | 1,150.00 | 50.00 | 4.2% |
| 4,00,000.00 |
| 4.2% | 4.5% |
|
|
| 28,700.00 | 25,650.00 | 3,050.00 | 10.6% |
| 10,00,000.00 |
| 100.0% | 100.0% | 39% |
LEAD GATHERING/FULFILLMENT: |
|
|
|
|
|
|
|
|
|
| |
Lead Form Printing |
| $ 10,000.00 | $ 9,000.00 | $ 1,000.00 | 10.0% |
| $ 1,00,000.00 |
| 34.8% | 35.1% |
|
Lead Capture Rental |
| 9,000.00 | 7,500.00 | 1,500.00 | 16.7% |
| 2,00,000.00 |
| 31.4% | 29.2% |
|
Lead Follow-up Costs |
| 8,500.00 | 8,000.00 | $ 500.00 | 5.9% |
| $ 3,00,000.00 |
| 29.6% | 31.2% |
|
Other |
| 1,200.00 | 1,150.00 | 50.00 | 4.2% |
| 4,00,000.00 |
| 4.2% | 4.5% |
|
Subtotal |
| 28,700.00 | 25,650.00 | 3,050.00 | 10.6% |
| 10,00,000.00 |
| 100.0% | 100.0% | 39% |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
| $ 28,700.00 | $ 25,650.00 | $ 3,050.00 | 10.6% |
| $10,00,000.00 |
| 100.0% | 100.0% | 100% |
Financial Cost Management Table
Quantitauve analysis is conducted through using financial cost management for the company that will include the budget for implementing the selected channel. For better distribution certain expenses have been beard by the company in its space rental, exhibit design, transportation, show services, travel and entertainment, lead gathering and advertising and promotion. This budget is deemed to be justified in considering the fact that the expenses experienced by the company in implementation of this budget are less than the revenue attained. Moreover, the budget that is prepared will facilitate in cost control that did not lead to cost overruns within the company. The budget that is set in the table above as the prospective distribution channel for the women range raincoats brand for the reason that annual inventions can be held by its wholesale and retail trade associations. Driza-Bone has a sound financial position and is observed to have a sustainable market position through being an icon among the fashion brands that is deemed to support its new product development strategy.
...
...