Selling Subtlewax To CVS Health And Shoppers Drug Stores

Distribution: Eric
Selectively distributing through multiple channels creates a placement strategy that maintains product control and has a balanced market coverage while leveraging intermediaries to initiate brand awareness. Two of the channels being used are direct and another two are indirect. One of the channels is a website that communicates directly to customers looking to purchase the product. The other direct channel is a three-month kiosk operation that will focus on gaining the brand awareness necessary to achieve the market share in our objectives. There is cross-channel integration with these two channels as the kiosk generates awareness that leads to sales for the website. The only intermediary being utilized is retailers. Selling SubtleWax to CVS Health and

Additionally, the most popular destination for women to go buy cosmetics is drug stores/pharmacies (Statista, n.d.). While mass merchandisers ranked as the second highest location for purchasing cosmetics, we didn’t see this as a viable option currently because of the power large stores like Walmart exert over their suppliers to push margins that better suit the store than the producer. The use of retailers as a channel helps for new entrants to have the competitive advantage by offering a contact point that is familiar to customers without needing to front high promotional costs. Shoppers Drug Mart has 1,307 stores across Canada, 250 of which we would look to have our product distributed to in areas of high population density with numerous high schools nearby. CVS Health is the leading drug store in the United States for sales, indicating it attracts a high number of consumers. We would distribute our product to 780 locations across America in middle class areas that have many high schools. Having little control over the placement of the product on shelves is part of the disadvantage of using intermediaries but we would hope to eventually be placed in an ideal eye level