Hi-tec Plastic Aids- The Channel Choice Decision*

Abstract:

This case is about the decision to be made by an entrepreneur on the distribution channel to use from the choices available to him. Five choices are placed before Mr. Raman, the first generation entrepreneur who chose to manufacture and sell plastic items like buckets, mugs, jugs, and clothes baskets. Now he had to arrive at a decision.

Issues: » The objective of the case is to enable the student to understand the need to evaluate the channel choice on certain parameters like » Reach » Cost » Competitive superiority » Future platform comfort » A variable to strategy Introduction Raman was pondering over a few sheets of paper at his newly established Cherlapalli office in Hyderabad, India. The packed Injection Molding machines meant for producing domestic plastic utilities had arrived the previous day at his newly acquired factory shed and were right across the office...

Questions for Discussion:

1. Should Raman plan to offer his products through any single channel?
2. If he follows a multiple channel system what should the combination be and why?
3. Should he focus on select products through all channels?
4. What would his concerns be if he were to choose the markets first and decide later on the channels to be used?

Key words:
Sales, distribution, channel choice, reach, cost, competitive superiority, future platform comfort, strategy

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.