Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Marketing

Question:

Read the following case study and answer question.

Ranvijay is an entrepreneur who has set up his enterprise with the manufacturing of an innovative product i.e. GPRS glasses with Al feature which is going to help the blind people in navigation and identifying places and people in front through voice. He has given a unique name to his product "Elinir". For all the usage instructions to reach to the consumer, he got them printed over the packaging which is made up of biodegradable material. He wants to get it advertised by some celebrity but fears that the cost of product may increase with the involvement of celebrity and will make it unaffordable. He is also planning to open his own outlets and his own website in order to sell the product.

Identify the channel of distribution used by Ranvijay to sell his product ?

Options:

Direct Channel

Indirect Channel

Two level Channel

Three level Channel

Correct Answer:

Direct Channel

Explanation:

The correct answer is option (1) : Direct Channel

Direct Channel

Explanation: In a direct channel of distribution, the product moves directly from the manufacturer to the consumer without intermediaries. In Ranvijay's case, he is planning to open his own outlets and his own website to sell the GPRS glasses with AI features directly to consumers.

Rationale: By opting for a direct channel, Ranvijay has chosen to sell the product directly to the end users through his own outlets and website. This approach allows him to have more control over the distribution process, customer interactions, and potentially reduces the cost by eliminating intermediaries.

Benefits: Direct channels often provide better control over the brand image, enable direct communication with customers, and may result in higher profit margins as there are no intermediaries to share profits with.