Question: requested to develop a distribution strategy for the new fi rm . MODA IN , founded in January 20 20 , is a company located
requested to develop a distribution strategy for the new firm.
MODA IN, founded in January 2020, is a company located in Bahrain that produces and markets clothes for women. This firmhas recruited more than 2,000 employees. In Bahrain, the clothing trade sector is highly dynamic and still presents undeniable growth opportunities. In this area, the customer has the choice between several brands. To do this, the company aims to launch the product in the market to face multiple competitorsand attract new customers. The marketing manager decides tocreate and set up a new distribution channel for the products.
The firm aims to become the market leader over a 3-year horizon. The products are of good quality and are positioned in the mid-range in the market. One can choose from different styles the firm has to offer. The firm aims to launch at least 10,000 new designs in a year and to provide best fashion trends.To produce the products, the firm uses muslin, silk and cotton and some nylon or polyester fabric.
A market study carried out by the company shows that consumers are more and more concerned about the quality of the products and the materials used to make them. The firm chooses to reach a target market namely those customers who pay attention to the quality of the products and the materials used to make them and especially women between 20 and 50 years old. To differentiate themselves from the competition, the general management decided to adopt a high price to convey a good brand image. This price will be significantly higher than the other clothes in the market. To familiarize the customers with these new clothes of this new brand and generate brand awareness and positive attitude, the marketing managers willmake great investments in promotion and advertising. You are required to develop a distribution strategy for this firm.
Questions:
1/The company must carry out a distribution strategy to promote its new products. What distribution types would you recommend to the marketing manager?
2/The company asks you to help it set up a distribution strategy process.
3/ Faced with this COVID 19 health crisis, new innovations in the distribution strategy will be necessary. What do you propose to this company to face this crisis and attract consumers?
The project must follow the following plan:
A/ Recognizing the need for a channel design decision
B/ Setting and coordinating distribution objectives
C/ Specifying distribution tasks
D/ Developing possible alternative channel structures
E/ Evaluating the variables affecting channel structure
F/ Choosing the best channel structure
G/ Selecting the channel members
The students must identify the type of distribution strategy (direct or indirect or both; exclusive, selective or intensive) and justify the choice of the intermediaries and the possible implementation of a multi-channel distribution
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