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Clark’s flower shop, a cut-flower retailer, is now coping with the emergence of non-traditional channel distribution wherein the profit of retailers may be lessened due to the disintermediation of the wholesaler in the flow. Because of this, retailers fail to take precautionary measures regarding the quality and variety of the products they offer.
Background of the Case
The emergence of e-commerce leads to the development of the non-traditional channel distribution wherein the presence of wholesalers is lessened. Although non-traditional channel of distribution offer faster process, there’s a possibility that the profit of retailers could be less since the growers also cater services to the ultimate consumer. The availability of variety of flowers may be limited to retailers and ultimate consumers as well.
1. Provide post-sales services for the benefit of customers I terms of convenience and customers service.
2. Add value through promotions and ads that could attract potential buyers as well as to satisfy loyal customers
Anaylysis on External Environment..
Although the non-traditional distribution channel could make the process shorter and faster for retailers, disadvantages still arise. The major disadvantage in the non-traditional channel is that the wholesaler was disintermediated that results the lack of variety of the products. The emergence of new technology has greatly affected the traditional purchasing methods of the channel flow which caused great competition.
Analysis on Internal Environment..
Clark’s Flower shop is a retailer that purchases flowers in boxes which allows them to set cheaper price on their product compared to other retailers. Also, they primarily purchase their flowers from regional wholesalers that provide them variety of flowers. But with the emergence of non-traditional channel distribution, Clark’s flower shop faces the challenge of sustaining the quality, availability and variety of their product.
Occur in the Channel?
Alternative Courses of Action
1. Offer deliveries and prepaid purchases set
for years and even update from time to time
in order for them to keep in track.
2. Create an ad which tells consumers that flowers are not just for Valentines or in special occasions only. Also provide promotions like discounts, freebies and memberships.
3. Make a calendar of stocks that would help
retailers when to restock and change their
With the emergence of an online market,
retailers and sellers have come up with nontraditional channel of distribution in which there is no longer need for a wholesaler. But with this practice, the variety available to the consumer and retailers has now become limited. That is why we are recommending to focus on creating promotion in accordance to occasions of the year. For example, during Valentines every purchase of a bouquet of flowers will come with a free box of chocolates or a card. Also a more intensive advertising campaign to push
customers to make purchases even if it is