Distribution Channel:

Distribution channel plays a vital role for both the consumers and manufactures as through it,
consumers are getting their desired products or services and on the contrary, the company or the
manufacturers are getting profits. Distribution channels are three types,

1. Direct: Where the company does not use any third party to sell their products
2. Indirect: When the company uses third party intermediaries to sell their products
3. Winning: When the company uses both the Direct and Indirect channel that is, the
company sometimes uses the third party intermediaries and sometimes it does not use any
third party.

For our product to distribute to the consumers, we will use the winning channel strategy. We will
sell our product to the consumers directly without having any intermediaries and we will sell our
products through the community center, the marriage event arranger and the decorators, who are
the third party intermediaries.

Conventional vs Vertical:

Conventional channel is like indirect channel that is the company use third party to sell the
products. These are the separate business unit and they focus on their own profit. On the other
hand, Vertical channel system signifies that a company uses marketing intermediaries, but they
are not third party intermediaries rather they are owned by the company and act as a unified unit.

For our catering service business, we will use both conventional and vertical marketing system.
As we are going to use indirect channel, so it will fall under the conventional system and as we
will directly provide our services to our clients by using our own employees, it will fall under
vertical system.

Marketing Channel to Brand Equity:

As we are doing winning strategies, we will receive more benefits to build or increase our brand
equity.

Indirect Channel: Through indirect channel, we will have 2 benefits.

 1. The intermediaries have the direct interaction with the consumers and they can spread
positive word of mouth to the customers. As a result, it will create a good perception
about our product on the consumers mind.
2. These intermediaries (community center) have their own brand image and when our
product will be sold in these centers, people will have an impression that, if the quality of
the product was not up to the mark, they (community center) won’t sell it to the
consumers. Thus, we will bring reputation from through the retailers.

Direct Channel: Through using direct channel, we will be benefited by

1. The needs of the consumer can be known and these sales representatives can spread
positive word of mouth about the benefits, value and quality of the product.