EVIDENCE 2 – WORKSHOP “DISTRIBUTION CHANNELS”

1. Lea cuidadosamente la siguiente conversación:

Susan: Good morning Mr. White.
Mr. White: Good morning, Ms. Susan. Can we start the meeting?
Susan: Of course, Mr. White. I have the options on the board.
Mr. White: That’s good. Remember, we need to choose the most suitable distribution
strategy for our products.
Susan: We have three strategies: Intensive, exclusive and selective. Intensive strategy
pretends to reach the largest possible number of POS (Point of Sale), but unfortunately,
it’s difficult to control. That’s because we would have to deal with many intermediaries.
Mr. White: What about the exclusive strategy?
Susan: It’s different from the first one. Only it’s necessary one POS by each geographic
area, no matter if it’s retailer or wholesaler.
Mr. White: Sounds god to me. And the last one?
Susan: Well, it’s the selective strategy. It’s the intermediate strategy between the other
ones.
Mr. White: I don’t know. I like the first one, but I don’t know how profitable it is.
Hhhhmmm, well. What do you think?
Susan: Well, I consider that the selective strategy is the best.
Mr. White: You’re right. Well done.
Susan: Thanks, Mr. White.
2. Responda T si es verdadero o F si es falso.

a. The Company product is a cake.

T ( ) F (X)
b. The meeting objective is to choose the product’s price.
T ( ) F ( X)
c. Susan proposes three distribution strategies.
T (X) F ( )
d. The selective strategy pretends to reach many POS.
T (X ) F ( )
e. The exclusive strategy is difficult to control.
T ( ) F (X)
f. Mr. White chooses the intensive strategy.
T ( ) F (X)

3. Lea el siguiente texto y responda las preguntas planteadas posteriormente:

Economic aspects – understanding of cannel emergence

Economic reasons are the foremost determinant of channel structure. The
emergence of the wide variety of intermediaries can be explained in terms of
four logically related steps in an economic process:
• Intermediaries can increase the efficiency of the process of exchange,
• They align the quantities and assortments produced with the quantities
and assortments consumed,
• They make transactions routine, and
• They facilitate the searching process.
Dependence and cooperation
Each member of a distribution channel is dependent upon the behavior of
other channel members. Four different approaches have been used to assess
dependence levels in channel relationships:
 • The ‘sales and profit’ approach, which postulates that the larger the
percentage of sales and profit contributed by the source firm, the greater
the target’s dependence on the source.

• The ‘role performance’ approach, which assesses the firm’s role

performance in carrying out its role in relation to another company
down or up the channel.

• The ‘specific assets –offsetting investment’ approach, which maintains

that offsetting investments help to safeguard the target company against
opportunism by the source.

• The ‘trust’ approach, in which a long-term relationship is built on the

extent to which companies trust one another.1

QUESTIONS:

1. The raise of such many intermediaries, are explained in ___ steps.

a. Three.
b. Two.
c. Five.
d. Four.

2. Intermediaries make:

a. Process of exchange.
b. Transactions routine.
c. New members.
d. Assortments.
3. A member of a distribution channel depends on:

a. Other channel members.

b. The retailers.
c. The wholesalers.
d. Intermediaries.

4. The ‘trust’ approach is based on:

a. The role of another company.

b. The percentage of sales.
c. How much companies trust each other.
d. Channel members.

5. The ‘role performance’ approach assesses:

a. The firm’s role performance.

b. The other channel members’ behavior.
c. Retailers.
d. Wholesalers.
 4. Describa en inglés un producto de su preferencia, asígnele una marca y presente,
tanto las características como los costos de dicho producto, luego seleccione un
canal y tipo de estrategia de distribución según la clase de producto.

COLOMBIAN COFFE
MARCA DE MI PRODUCTO:
CAFÉ AMARILITOS…
Coffee is the drink obtained from the roasted and ground grains of the fruits of the coffee
plant; It is highly stimulating due to its caffeine content, a psychoactive substance. This
product is one of the most commercialized in the world and one of the three most
consumed beverages in the world.

Most studies agree that a moderate consumption of coffee, between three and four cups a
day, is beneficial for health, as it provides nutrients and protects the body against certain
diseases.

Some of the benefits are as follows:

• helps burn fat

• provides nutrients
• is a source of antioxidants

Currently the coffee load (125 kilograms) is above $ 1.50 million POC, and so far, it is
the highest national value in history.

In the United States, a pound of Colombian coffee costs US $ 1.61

DISTRIBUTION CHANNEL

SHORT – CLASS INDIRECT DISTRIBUTION CHANNEL

CONSUMER GOODS CHANNELS: Used to transfer the physical product from the
producer to the final consumers, being able to use different alternatives.

DISTRIBUTION STRATEGY

INDIRECT DISTRIBUTION

since coffee is distributed through various intermediaries such as retailers,

wholesalers, etc.