Question

JMP is a manufacturer of high-end designer apparel. Competition in the apparel industry is severe and the market is driven by price. What distribution strategy would be best suited to help JMP obtain an edge over its competitors?

Answer 1

Since the competition in the apparel industry is very severe and the market is driven by price,it is quintessential for JMP to reduce their operating costs as much as possible to stay competitive in the market.

JMP can achieve an edge over its competitors if they can bring down their supply chain costs by reducing the number of supply chain players i.e reduce the channel length to enhance the operational efficiency thereby bringing down the prices of the products.So, JMP should employ direct distribution strategy to reap higher profits and gain significant market share.The firm can sell can its product on e commerce channels which cuts down their costs to a large extent.

Also,since the industry is highly competitive,JMP should also employ intensive distribution strategies by selling on maximum number of outlets to enhance its reach to the target market.JMP should ensure that their products are available at as many channels as possible to maximise their profits and beat the competition.