This is an excellent case that focuses you on distribution strategy and growth, and the implications of those choices for other elements of the marketing mix (and profits). You'll draw most heavily from the Channels module, but not from it, exclusively (marketing strategy, positioning, branding, product line strategy (and pricing, which we are just getting to) may/should play a role in your analysis).

As always, do not consult any outside materials beyond those linked, here.

Here are the assignment questions:

1. What are the advantages ande disadvantages of the direct-to-consumer (DTC) model?

2. What are the financial realities of the DTC model?

3. Searching for the "legitimacy threshold" in new ventures, how does passion (or lack of it) affect the trajectory of a venture? How should Stoddard pursue his own career goals?

4. Assuming Schiit Audio continues selling through the Amazon Marketplace, should it modify pricing or the product line-up offered via this channel? Or should the company end its partnership with Amazon? These are the ultimate, and thus key questions of the case, and that should be reflected in the thoroughness of your answers.

For this case, there are a few outside references that may be helpful:

The Legitimacy Threshold (concept):

Searching for the Legitimacy Threshold-Dr. Paul Buller (gonzaga.edu)(Links to an external site.)

(You'll at least need to have a basic idea of the concept to answer Q3; you are free to read his original journal article, if you'd like--but no need to get too deep; on its face, it's a simple idea)

Here are a couple articles on DTC brands that might be interesting/helpful:

IAB "250 Brands to Watch" Identifies the Most Disruptive U.S. Direct-to-Consumer Brands and Services(Links to an external site.)

DTC Growth: Is Direct-to-Consumer the Future of Retail? (profitwell.com)(Links to an external site.)

Established Brands Are Embracing the Growth of Direct to Consumer (apocalypseretail.com)(Links to an external site.)