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How Would a Manufacturer of Exercise Equipment Benefit from the Addition of Another Channel of Distribution to the Two-Level Channel It Now Uses?

In: Business and Management

Submitted By holistic12007
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How would a manufacturer of exercise equipment benefit from the addition of another channel of distribution to the two-level channel it now uses? For the manufacturer of exercise equipment adding a channel of distribution could provide a range of benefits. Intermediaries can increase efficiency of the channel, provide the option to expand into a bigger range of products, expanding the customer base and distribution methods. For example, if the exercise equipment is being delivered by road perhaps another distributor could capitalize on air and sea. If the manufacturer is domestic adding another distributor could open international sales or increase business beyond the current geographical bounds. The addition of another distributor could create relationships with schools, universities, hospital rehabilitation departments and hotels for example to be their exclusive provider of exercise equipment. The distributor could develop customized packages for these venues for example adding yoga balls or hand weights as a bonus, the theme is to provide an appealing package to the new venue(s) and creating a competitive edge both in service, long term agreements and loyalty by corporations to the exercise equipment manufacturer. A distributor could create standardization of orders, payment, return policy and method. For example my son bought a treadmill from Sears and there was something wrong with the rubber part you run on. We were impressed with the efficiency of the pickup and replacement, which can be a role or an added value of adding a third level distributor. The addition of a distributor could save costs that are passed onto the consumer making the exercise equipment more competitive in price and service. The distributor could add other mechanisms of sales beyond the mortar and bricks store by integrating online orders, attaching adverts for online

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