If the company manufactures THE GENEVA BRAND WATCH, then the required level of selling
activities will likely to be low. After-sales service is optional, even can be eliminated. Since the
average retail price is already cheap, increasing amount of selling activities means growing
unnecessary costs. When it comes to channel length, the company should consider indirect channel,
launching a chain of intermediaries, from supplier, to distributor/wholesaler, and then to retailer
stores. Using each intermediary’s own advantage, the company can reduce its own operation costs,
lowering the risk and creating more efficiency as well. With regard to channel breadth, the
company should use intensive distribution, stocking products in as many outlets as possible. This
method could maximize the possibility of the product to be available for purchase by consumers.
If the company manufactures THE PATEK PHILLIPE BRAND WATCH, then it will have to
make greater marketing efforts when engaging into higher-level selling activities. After-sales
service will be of vital importance to costumers, especially when you want them to become loyal.
When it comes to channel length, the company should consider direct channel, since the product
requires a large amount of introduction and communication to the end consumers. On the other
hand, risk will arise a lot when the product involves numerous interactions from different levels
of intermediaries, causing inevitable damaged or stolen. The high value of the product may not
allow the company to bear such burden. With regard to channel breadth, the company should use
exclusive distribution, treating the product as specialty good. Fewer outlets could bring costumers
perception that the item is a luxury good, enhancing brand awareness.