In: Operations Management
Some marketers feel that the image of the particular channel in
which they sell their products does not matter--all that matters is
that the right customers shop there and the product is displayed in
the right way. Others maintain that channel images--such as a
retail store--can be critical and must be consistent with the image
of the product.
2. Take a position: Channel images do not really
affect the brand images of the products they sell that much versus
Channel images must be consistent with the brand image.
A marketing channel is a necessary to ensure that the products
that have been manufactured reach the end consumers in the proper
time effective manner. While it is difficult to ascertain whether
any channel has significant correlation to sales, very often a
brand is synonymous with the distribution strategy it takes on. For
understand the distribution strategy we must first understand the
organization`s strategy.
For example, if we consider the case of Zara, a leading fashion
retailer. They want to ensure that the latest trends are available
to the consumers in the quickest time. To ensure this, the
distribution strategy including logistics have to be really
effective. In such cases, the cost of supply chain planning,
sourcing, network design and logistics management will be high. To
recover the costs it becomes a mandate that the costs will be
passed on to the customers. In such cases, the shops need to be
prime locality where the community can afford to spend the money
and purchase for the supply model to work effectively.
Contrary, if we consider a local vendor who wants to sell
vegetables across chain of stores, affording a store in a big area
in a shopping mart may not be affordable. In such cases, he may
prefer to sell it to local vendors in the markets.
I fully feel that the channel image plays an important role in
brand images. Brand perception is very important in the mindset of
the consumer and this is what differentiates one product from
another. If we consider the case of Zara, if Zara were to sell the
clothes in low cost stores in every other block, the brand will be
popular but only a select few among that neighborhood could really
afford such clothes. While it can be argued that if right consumer
shop in any area, the brand still maintains the impact it wanted to
create, but it is not very often that such occurrence happen.
Shopping is often described as an experience, high end shoppers
often prefer spending time in shops to understand what is best and
what can be better than others in the crowd. In such cases, having
a high end retail store is a must to ensure such customers are
attracted to the stores. As mentioned initially, all this boils
down the to the target audience the brand needs. If they want to
target the high end customers and ensure the projected prices are
recovered, channel image is a must to maintain.