Question

Because of channel conflict problems, it is not good for brick-and-mortar companies to adopt the multi-channeling strategy.

Is this sentence True or False? give reasons clearly about which part of sentence is true/false with good explanations.

Answer 1

Brick- and -mortar store is the key to Retailing. Due to the invention of different technology, there is a pace of online E-commerce business. Each brand is looking for incremental business and increases its market share.

Online is the one of the important channels to reach your target customer of the business. Nowadays, different types of apps, social media are becoming the mode of sale. So the brick-and-mortar store is increasing the base through this channel It is good for their business to sustain and growth in the future.

The key is to focus only on those modes of communication which is beneficial for the sale and creates a better brand image in the market. Because it also involves the cost of resources of the back-end.

There is no doubt there will be an issue of channel conflicts; because Manufacturers also trying for D2C Sale (Sale to Direct to Consumer). Many manufacturers are going to direct sale mode from warehouse to consumer model.

This is false that the Brick-and-mortar store should not adopt the Multi-channel strategy because of channel conflict.

Rather it should be overcome through following steps:

1.Pricing: The Pricing of the product to end consumers should be the same to avoid the conflict. Customers will decide based on the service of the Retailer or the brand values associated with a retailer or wholesaler.

2. Promotion: Retailers and wholesalers should avoid discount promotion. Rather there should a bundle offer. It includes different types of products with a bundle MRP.

These tactics help in avoiding the Channel conflict.