Question

Is the distribution channel selected always consistent with the products image? We have all heard the saying that image is everything. If you discover a Coach handbag on sale at Walmart and you had recently purchased one at Coach's retail location in an upscale mall, what might you think about the brand?

A display ad for Stihl chain saws reads "Why is the world's number one selling brand of chain saws not sold at Lowe's or The Home Depot?". Why has Stihl decided to not include these major channels as part of their strategy? Is there a specific stereotype associated with products sold at these mass merchant locations?

If a product is prominently displayed in a retail location and your target customers have been known to frequent the store, is the image of the channel member a factor? Some marketers claim that the image is not an issue. Others, however, argue that the image of the channel member must match the image associated with the product.

For this assignment, you will take a position on whether “the image of the intermediary does not need to be consistent with the image of the brand" or "the image of the intermediary must match the image of the brand." Support your position with credible research.

Answer 1

"The image of the intermediary must match the image of the brand."

There are some specific reasons for this -

A customer always pays high for a brand. The reason behind this is brand loyalty. The customer believes he is investing his money on a quality product.

The same customer would never pay that much amount for the same product if it starts selling at a street shop.

Nobody would buy a pair of Hush Puppies shoes from a shop selling Paragon.

This is because the company that is selling the product must count on its product living up to the standard they have set and market to consumers. Selling it through a intermediary that does not have a sound image hampers this standard.

This is the reason why you would never get a Peter England shirt at a normal cloth retailer.

One such example is Dominos which believes in providing home delivery through its own delivery system. Even if it uses some intermediary mobile app for delivery it would be a standard app like Zomato and not a local level app.

Nobody wants to sacrifice their brand loyalty just by doing business with a non branded intermediary.

This is the reason why most of the clothing brands have their own outlets from where they do their maximum business rather than selling it through multiple local level vendors.