Question
Consider BR Hygiene Ltd that manufactures and sells household hygiene products such as hand sanitiser, hand wash and floor and bathroom cleaner. The company's target
Consider BR Hygiene Ltd that manufactures and sells household hygiene products such as hand sanitiser, hand wash and floor and bathroom cleaner. The company's target customer segment is the middle class urban Indian population.
Since the company sells its products only in urban areas, it has not invested in its rural distribution network over the past years. Now, with COVID-19 and a sudden shift in consumer's preference towards better personal hygiene, there is a growing demand for hand sanitisers and hand washes from the rural population.
To leverage this sudden spike in demand, the company has decided to start selling its products in rural areas as well. However, from the market survey, the company has identified that this demand is only temporary and will die out within a year. Keeping these parameters in mind, which of the following distribution strategies should the company adapt?
A hub-and-spoke model
Corporate piggybacking
Selling to local rural retailers by appointing distributors
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started