Channel Objectives Differ from Firm to Firm; Consequently, their Channel Designs Differ

We see that often channel designs of firms differ from one another. Even within a given industry; different firms have different channel designs. This is so because their channel objectives differ. Even in respect of those objectives, which are by and large common for all firms, we can see variations in emphasis from firm to firm. For example, intensity of market coverage sought from the channels and extent of convenience to be provided to the customer will vary from firm to firm. The weight ages will flow from the marketing objectives of the respective firms.

The textile industry example: National Textile Corporation (NTC), Reliance Industries, Bombay Dyeing, DCM and Mafatlal are all textile firms and all of them operate in the same market. Yet, their channel designs vary from one another. This is so because their channel marketing objectives differ from one another. NTC’s objective is to cater to the lower middle class, with textiles of reasonable quality at reasonable prices. It goes in for a channel design, which is appropriate for this objective. At the other end of the spectrum, selling ‘fashion’ to well-to-do urban segments is the objective of Reliance. Premium product and premium price are the implications here. Evidently, the channel design of Reliance differs from that of NTC Reliance has gone in for a chain of exclusive Vimal showrooms. Though NTC has also set up some showrooms, it relies mainly on conventional trade. Reliance has set up 2,000 odd showrooms, covering all metros and Class I towns of India; it has located them in the shopping areas of the concerned towns; it has fabulously displayed its fabrics in these showrooms; the showroom is one main strategic strength of the company; Firms like Bombay Dyeing and DCM fall somewhere on the line between the positions taken by NTC and Reliance at the two ends. All these firms have obviously selected their channel design, based on their respective channel objectives.