Choose a firm that sells their products through more than one channel of distribution

a) Samsung is a company of South Korea who sell different products like Samsung mobiles, Samsung televisions, cameras, etc. These Samsung products are sold through online networks like snapdeal, flipkart, myntra, etc and through various Samsung showrooms to the general public.

Every firm follows different approach for product distribution due to their different strategies of selling product to the customers. Samsung company sell their product through selective platforms i.e. selling online or through their showrooms. Limited outlets are there to sell this particular brand.

Under selective distribution, a producer uses limited number of outlets in a geographical area to sell products. An advantage of this approach is that the producer can choose the most appropriate or best-performing outlets and focuses on them only. Selective distribution works best when consumers have a preference for a particular brand. It also enables the firm to establish a good working relationship with channel members. Selective distribution helps the manufacturer to gain optimum market coverage and more control at a lesser cost than intensive distribution.

Competitors of Samsung are Asus, Lenovo, Apple, etc. Asus is a competitor of Samsung in selling smart phones in the market. Samsung sell their phones online as well as through various distributors who take permission. On the other hand, Asus phones are only available online. There exist no distribution of Asus mobiles.

Lenovo mobiles are also available in the market but less than the Samsung as distributors of Samsung are much more than the Lenovo. Lenovo mobiles are also available online, one must bought it online.

(b) Samsung should increase its channels of distribution through involvement of more retailers of product. This increases the sale of mobiles and it become easy for consumers to purchase it. It should follow the steps shown below:

1. Understanding needs of customers : Firms have to understand the needs of customers irrespective of following their strict strategies. If customers have to travel so much to buy the firm product then, firm have to take initiative that reduces transaction cost of customers.

2. Cover more number of customers : Firms have to follow that strategy of distribution which covers large area of customers and distributors available to these customers in meantime.

(c) When a firm's marketing strategy does not in the way it wants then, it shifts its in some other way. If firm is providing its product through some selected area and found that sales are not increasing as it is quite far from their place then, firm will shift its marketing channel. It can open more new distributors of product so that they can achieve target of more sales.

Some firms follow the strategy of exclusive distribution under which there is only one wholesaler, retailer or distributor is used in a specific geographical area. When the firm distributes its brand through just one or two major outlets in the market, who exclusively deal in it and not all competing brands, it is said that the firm is using an exclusive distribution strategy. Examples are designer ware, major domestic appliances and even automobiles. If firm notes that there sales are very less due to the presense of only one or two distributor then, it will take steps to increase number of distributors to earn more and sale more.

Circumstances that lead to a firm to change its distribution channel are low profit, less sales, more competition, etc. If Lenove increases its outlets and increased its distributors and due to this sales of Lenovo increases then it force Samsung also to change its distribution channel.