Assignment 2: LASA 1—Afterschool Depot: Channel Design and Implementation Plan
Assume that you have been hired as the channel manager for Afterschool Depot. Beth Nammons, Marketing Director for Afterschool Depot, has assigned you to develop the channel design and implementation plan. She has asked that you complete the following three tasks in your report:
- Assess the four target markets that the company has selected.
- Determine whether Afterschool Depot should include wholesalers as channel members or sell directly to retailers.
- Prepare an instructional explanation that will help Beth understand the role of vertical integration in channel design and present your analysis of whether vertical integration will be valuable to Afterschool Depot.
Being aware that the first step in the channel design process is to segment the target market, assume that you reviewed the Healthy Kitchen’s target market analysis performed by Beth. Your review uncovered the information shown in the table below.
To complete Task 1, you are to assess the four identified target markets using the service output demand (SOD) template in Word format for your analysis. Include the completed template and a 1-2 page explanation of your analysis as the first subset of your report to Beth. Prepare your report in MS Word format.
TASK 2:To complete Task 2, you should use the target market information and your SOD analysis to determine whether including wholesalers as channel members will assist in creating a sustainable competitive advantage for Afterschool Depot. The alternative is to sell directly to retailers.
In order to make a well-informed decision, you assessed Afterschool Depot’s internal constraints that may affect channel member selection. Your assessment identified warehouse space and the sales representative compensation budget as potential constraints.
Once you have determined whether to include wholesalers as channel members, you must complete your analysis using the efficiency chart template in Word format. Include the completed template and a 1-2 page explanation of your analysis as the second subset of your report to Beth.
TASK 3:Task 3 requires you to prepare an instructional explanation to Beth that will help her understand the following:
- The role of vertical integration in channel design
- Your analysis of whether vertical integration will be valuable to Afterschool Depot
- Your recommendation regarding whether the company should plan to utilize vertical integration.
Write 2-3 pages that address Task 3 to include as the third subset of your report to Beth.
Prepare your completed report (tasks 1, 2 and 3) in MS Word format and submit the entire report for grading.