Case Study:

Mary Jay, an American designer of luxury leather goods, had experienced growth by selling her goods in her own retail stores. As internet usage increased, Mary Jay did what many of her competitors did: she created a virtual online store on her company website. When the Canadian and US dollars were on par, many Canadian shoppers would purchase online through the US website since there were no retailers in Canada carrying Mary Jay goods. Eventually, Mary Jay opened her own retail stores in Canada after considering the risks and advantages of going global. She also created opportunities with major department stores to carry her goods under specific conditions.

1. How many channel levels did Mary Jay have? What type of Marketing system is she using? (5 marks)
2. Describe possible conflicts that can arise. (5 marks)
3. What is the most logical way to store and distribute product from the main warehouse in the US to the Canadian customer? (5 marks)
4. How does a company determine its channel objectives? What factors influence the channel objectives of a company? (10 marks)