Question
Randy Hollahan was upset with the poor job Hyundai Department Store and Lotte Department Store were doing selling his line of fine brass products from
Randy Hollahan was upset with the poor job Hyundai Department Store and Lotte Department Store were doing selling his line of fine brass products from India. He complained that the department stores simply put the products on the floor display like any other product, and expect people to buy them on impulse. He felt the department store didn't realize that his products had to be sold by knowledgeable sales people who can show customers the intricate details and the artistic engraving on the products that are done exclusively by hand.
What issues does Randy have regarding channel structure,and market behavior in channel design strategy?
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Randy book publishing company has decided to publish their "classic British literature" line of products (eg. Charles Dickens, Agatha Christie, the Bronte sisters, etc), exclusively in e-book format, and available only from their website. Additionally, they are making this line of products available for $9.99 when they would usually sell for about $15 in retail book stores like Barnes and Noble,the largest book retailer in the United States. The classic British literature line has been a very successful line for Randy, selling well over 200 million copies around the world in over 50 different languages.
Randy is thinking about extending this e-book strategy to its other product lines over time. What marketing channel problems/issues do you think Randy may have with their e-book plan?
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Randy Appliance Company has traditionally used a large number of small wholesalers to distribute its products to appliance retailers. One of the larger wholesalers, EJH Wholesaling had been distributing Randy's products for over 30 years, when Randytold them that EJH would not be distributing Randy's products in the future as part of Randy's channel redesign strategy. EJH decided to take Randy to court saying the termination violated their distribution agreement and Canadian franchise law. EJH has been getting support in the lawsuit against Randy since these retailers feel that they would get less attention and service from Randy without an intermediary like EJH.
Evaluate the use of power in this channel relationship?
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