Case 11
Star Chemical Company
Case Objectives
1) To give the students an experience in the difficult problem of channel design.
2) To discuss possible frameworks for evaluating channel alternatives.
Problem Situation
The Star Chemical Company is seeking an efficient way to distribute a new germicidal chemical
for swimming pool cleaning. It needs to identify the distribution alternatives and find the best
one.
Case Discussion
The first step in discussing this case is to distinguish the various possible target markets for the
product. Star Chemical could decide to concentrate on the home pool market or on the
Let us assume that Star Chemical wants to gain experience in consumer marketing and sets home
pool owners as its target market. The task is to research the various ways in which the product
can be made available for purchase to home pool owners. Here are six broad alternatives:
1) Conventional retail outlets such as hardware stores, drug stores, and garden supply shops.
The company would have to research swimming pool owners to learn where they prefer to buy
their swimming pool chemicals, how much they expect to pay, their images of different brands,
in the selling of swimming pool chemicals.
The channel alternatives identified above deal with the broad retailing possibilities for the
product. Star Chemical may want to take a more fundamental look at the channel alternatives:
1) Marketing through present distributors (Present Distributors Alternative).
2) Marketing through new distributors already selling to the swimming pool trade (New
A discussion of these alternatives is likely to move inconclusively unless some overall
framework is established for rating them. The class should propose methodologies for this