Case Study 3 ( 10 Marks)

Mr. Talal is working in a manufacturing company for shoes and bags lines. They produce high quality products for reasonable prices that can be afforded by all customers income level. Talal knows that taking care of production is not the only thing matters in the company, but other things like storing,selling,packging and distribution of these products is also important.

A manufacturer can sell his products through many channels like wholesalers and retailers. If the company did not choose the channels carefully, it might become a problem for the company and all their production efforts will go waste. Transferring the product from their manufacturers and stores to ultimate customers is really important. So Talal chose the shortest channel to deliver their products and the most suitable for them, which is selling directly to retailers. Also, deciding to whom should the product be sold and what should be sold to them is an important question to be asked before even choosing the distribution channel. Because every company has limited resources and it is important to

choose the right part of the market to serve.

Talals company is thinking of expanding overseas therefore selling directly to retailers or customers will be difficult.Talal has to choose other ways to sell their products like using middlemen to to distribute

the products.

Question 3

i. Do you think middlemen can help Mr. Talaal in distributing the products overseas? Debate

. (5 marks, 125-150 words)

ii. Suggest other types of distribution channels that can be choosen to distribute products of Talals company? (5 marks, 125-150 words)