Wholesale Marketing Channel Case Study Example | Topics and Well Written Essays - 1250 words

Wholesale Marketing Channel - Case Study Example Furthermore, these retailers create delays in order to frustrate the customers and tarnish the reputation of the company in the market. As a result, the most appropriate marketing channel for FOXXY is the use of the wholesalers. Unlike in Canada whereby the company was able to use internal sales representatives to distribute products in different parts of the country, the US market requires a different approach. The reason is that the target market requires different segmentation strategies in order to position the products strategically in the market. Therefore, the use of wholesalers will offer the company with an opportunity to focus on the production system. Therefore, the company will produce high quality products which meet the tastes and preferences of the target market (Keillor, 2013). The reason is that majority of the target customers are young people who have a disposable income that they are willing to spend on high quality products. However, this group has access to information especially from the social media. As a result, they can easily shift their loyalty to new entrants in the market. Local wholesalers understand the market dynamics in the United States. With the increasing levels of globalization, it has become critical for the company to focus its attention towards customers’ satisfaction. However, due to the fact that FOXXY is an external company, many of its subordinates do not understand the US market. Each market has its unique culture which must be taken into consideration while marketing and distributing the products. Therefore, in order for FOXXY to achieve this objective, the company should have to employ local subordinates who understand the local consumption culture. This would delay the expansion program and affect the future plans of the company. Moreover, the US market prefers to be associated with products that have been produced locally (Reidenbach & Goeke,  2006).