TyroCity

Discussion on: Channel System Integration

Collapse
 
sushant profile image
Sushant

Retailer is a middleman whose primary task is selling to the ultimate customer (American Marketing Association, 2015). They are the intermediaries, which makes the product or service available to the general public by using different forms of distribution. Meanwhile Distribution channel has become complicated and yet easy to access with the growth of Information and technology. So, I would choose "Gillette" as the best retailer that has come up with new concept, which looks complicated yet has made shaving easy by the use of IT.

The online sales in US is equal to 10% of retail trade (Stern, 2016) while the growth rate in internet sales rose by 23% in 2015 and is expected to have an creased growth rate this year (Loeb, 2016). Gillette has now come up with an online sale of its product and a revolutionary new concept called “Shave Club”. Shave Club is basically a shaving plan that includes razor plus other shaving solutions; the customer picks the models and determines a timeframe to receive next lot of cartridge and other shaving solutions, based on which the company maintains a continuous flow of the supply. The Shaving Club can be comparable to a Monthly subscription of magazine, where the buyer gets the subscription after certain time, while in shaving club’s case the only difference is that the buyer determines when he’d like to replenish the stock. Looking upon these cases, we can say they have an integrated channel system. In my opinion, Gillette must focus more on Online shaving while can follow the customer’s preference and provide small units of differentiated products based upon geographic differences.

Yes, I always use multiple channels for a product purchase. According to Floyd, Freling, Alhoqail, Cho and Freling (2014) the online product reviews has a greater on sales and consumer and consumer tend to search for reviews in the internet before buying (Floyd, Freling, Alhoqail, Cho, & Freling, 2014). The same is true for my case. I often go to the official site and look over the products and its features while will be making parallel research for its review. Recently I was researching over the Gillette’s flexible razor “Proglide” and the electric “Fusion power razors” with the intention to buy them on Bhat-Bhateni. So, now a day it’s common to search about the product online; buy online if you find a good deal or else buy it at the department stores at your convenience.

References

American Marketing Association. (2015). Dictionary . Retrieved from American Management Association: ama.org/resources/Pages/Dictionary...

Floyd, K., Freling, R., Alhoqail, S., Cho, H. Y., & Freling, T. (2014). How Online Product Reviews Affect Retail Sales: A Meta-analysis. Journal of Retailing , 90 , 217-232.

Loeb, W. (2016, January 4). Why Retailers Must Restructure In 2016 . Retrieved from Forbes: forbes.com/sites/walterloeb/2016/0...

Stern, N. (2016, January 4). Will 2016 Be A Transformative Year For Retail? Retrieved from Forbes: forbes.com/sites/neilstern/2016/01...