Dynamic Solutions

The founder of Dynamic Solutions, Thumo, started by making cleaning chemicals and clothing accessories as a hobby at home. When the Covid 19 pandemic started to wreak havoc in March 2020, Thumo began to manufacture and sell her hand sanitisers and face Masks to customers in surrounding streets in her neighbourhood. Her hand sanitisers and face masks proved to be very popular, especially amongst the millennials. It was low priced, of high quality, perfumed with various fragrances, and very fashionable. Quite simply, Thumo discovered that not only was she good at making hand sanitisers and face Masks, but she had a feel for the market and hand sanitisers and face Masks products that would sell across many markets.

From this humble beginning, in just two months. Thumo has expanded her business and sales to the point where she now works full-time and employs three people to help her make the hand sanitisers and face Masks in a small workshop. At the moment she is implementing direct distribution by getting orders and distributing the goods directly to customers.

Thumo wants to expand the business but feels that engaging marketing channels through indirect distribution will make her lose control of her business, and increase the distance between the company and her customers. Furthermore, adding intermediaries will increase the amount of time it takes for her product to reach the buyer. It will also find it harder to establish brand loyalty when she will not interact directly with her customers.

Discuss for reasons why Thumo should engage marketing channels when distributing her products? (20marks)

Explain any four types of conflicts that Dynamic solutions will likely face with the distributors (12 marks)

Suggest four ways through which e conflicts can be solved.