Selecting Appropriate Variant within a Given Design

Usually, within a given channel design different variants can be thought of. For example, firm I: A and firm B may opt for the same channel design consisting of conventional wholesalers and retailers. Still, their approaches within the model can vary from one another. Firm A may opt for a wholesaler-weighted system, while firm B for a retailer-weighted system. For example, Nirma Chemicals distributes Nirma soap with a wholesaler-weighted system. In contrast, HLL distributes its Lifebuoy in the same market through a retailer-weighted system. Nirma off-loads the product on the wholesalers at a larger discount; the retailers buy the product from the wholesal- ers. HLL reaches out directly to a large number of retailers, using wholesalers! C&F agents to the extent necessary:

The two variants have their associated advantages and disadvantages. For instance, the wholesaler-oriented system obviates the need for a large sales force, thereby resulting in considerable savings in related costs. But, brand building may suffer somewhat in that system. The firms have to study in detail the trade-off between the two approaches and have to see which one would best suit the firm.