You are to assume the role of an entrepreneur that has created a line of all-natural hair care products named Cleanse. Your business partner has asked you to analyze a list of four retailers that want to sell Cleanse products and decide which is the best sales channel for the company to reach the target market.
Cleanse is a new line of all-natural shampoos and conditioners that are certified organic and vegan. Cleanse products are completely free of all animal ingredients and have not been tested on animals. The shampoos and conditioners are softly scented and are packaged in 10-ounce bottles made from recycled materials. Currently, Cleanse products are only available on the company website. Each 10-ounce bottle is priced at $15.99.
Professional women with moderate to high socio-economic status have been the largest market purchasing Cleanse products. The customers have an allegiance to the organic and vegan qualities that are important to the company and do not mind spending more on hair care products that support that.
The company has been so successful that several retailers have asked to carry Cleanse products. Your business partner has narrowed the list to four different retailers that are interested in selling the products. It is important that each retailer be analyzed to determine the success Cleanse will have using the sales channel to reach the target market.
- Option 1: Maygreens – a popular drugstore with over 8,000 locations. Each store has a dedicated cosmetics/beauty department where Cleanse products would be located.
- Option 2: X-Mart – the world’s largest big-box retail chain. X-Mart is the world’s largest company and has over 11,00 locations. Cleanse products would be located with all other hair care products in the health/beauty aisles. X-MART carries many brands of hair care products.
- Option 3: Wordstrom – a high-end department store with 200 locations. The department store does not typically sell hair care products, but would have a special display in the upscale cosmetics department.
- Option 4: Urba – a specialty retailer that sells cosmetics, skincare, fragrances and hair care products. There are over 900 locations. Urba sells a wide variety of hair care products at all price points, both less expensive and more expensive than Cleanse.
