Caninantics Case Study

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1. How many channel levels are appropriate for your company's targeted business segment? Based on the number of channel members, should you use exclusive, selective, or intensive distribution? Why?
For Sallone's to be successful, we will use a mixture of zero and one channel levels as our strategy to target our core business segments. We will use our promotions and advertising to attract potential consumers to buy direct from our factories via the use of our website which is a zero level channel, manufacturer direct to consumer (Kotler & Keller, 2008). This zero level channel is cost effective as it keeps all third party suppliers out of the loop.
We will additionally pursue a one channel level strategy of selling our dog food dispensers directly to distributors who will sale to consumers. We will target pet supply dealers and big box retailers as our primary distribution resources for effectively moving our products to our consumers (Kotler & Keller, 2008).

Using a mixed strategy of zero and one level channels will be effective for Sallone's based on some key factors:
- Distribution at zero and one channel levels helps keep Sallone's in control over the final service consumers receive.
- Using the mass appeal of big box retailers and specialty pet supply distribution centers can help persuade more casual consumers toward purchasing our products based on their attraction to the stores products through a developed history of shopping there (Ruskin-Brown, 2010).
- Having 2 strategy channel levels will ensure the company has the capability to meet all customer demands through online purchases and by having a strong shelf presence in retail stores (Kotler & Keller, 2008).
For our distribution we will use Exclusive Distribution as our primary strategy. By utilizing an exclusive distribution model, CANINANTICS will have the ability to maintain more control over its flagship product, Sallone's Universal Dog Food Dispenser. Due to the specialized nature of the dispenser and the newness of the product to market, having exclusive distribution allows for ensuring technical experts are available in the distribution chain to be used as a resource to help explain the products advantages and generate sales (Shaw, 2011).
Additionally, the strategy of exclusive distribution will help CANINANTICS develop strong partnerships with specifically selected vendors that are trusted and represent our products well (Shaw, 2011).

2. What types of retailers will your company use for distributing your product? Discuss the advantages and disadvantages of using this type of retailer.

CANINANTICS will use specialty stores and full service retailers ...