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LOCATION

510 5th Ave, New York, NY 10036, USA

The company architecture comprises several collection and sub?brands, each of which is a leader in its segment. Market has been split into Low end (Geneva Brand) and Luxury brand (Patek Phillips Brand) which have average retailing price of $10 and $90,000 respectively.
The Geneva Brand Watch
Conventional channel with an indirect distribution is recommended for the company to place their products among whole sellers to agents or retailers as this will result in product distribution into a plethora of markets due to the unique selling point, namely low cost convenience. In turn retainers would showcase and employ salesmen to sell them and thereby share the resultant profits with distributors. This would aid the prospective customers to experience the product virtually in supermarket, and the watch stores. These extensive channels provide a wide range coverage to the products, covering a number of pricing options and target a number of segments of customers. This aids Geneve to generate sales volumes.
The Patek Phillips Brand watch
A vertical marketing system with a direct channel which would result in controlling a centralized management over all aspects of the business is recommended in this case. As this would predict challenges and place a mechanism to increase marketing efficiently. Excellent communication and coordinated strategies are critical to make such an exclusive product successful and create a winning network with the prospective consumers. An exclusive distribution channel that owns and operates limited outlets needs to be used, as the selling effort for an exclusive product is intense. Exclusive distribution ensures high levels of service to the potential consumers need to be assured of the quality of services to breed sustainable brand loyalty. The brand perception that would be created owing to the small number of outlets in terms of luxury watch as the brand, the lineage, culture and products, and the linkage with quality and luxury. The luxury quotient needs to be stressed to the consumers and this is implemented by strategizing elements of the marketing mix inclusive of the channel strategy.

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