For staying competitive in the market, Nudie, like any other company has to introduce new product lines occasionally. The development of the new product line has been always a challenge for any company. The need for the development of new products is usually promoted by the ever-changing customer preferences, technological advancements, and competitive forces. However, the rate of success for the introduction of new products is evidently low for the businesses. There are many factors which lead to the failure of the new products. For the achievement of success in introducing new products, companies have to be more innovative. However, factors like price, quality, promotion, the demand of the customer, and the competitive nature of the new product is also crucial for its success (Tanja & Thomas, 2014, p. 107).
One of these many factors is the support that this new product receives from the independent members of the company environment. The channel members play an important role here. Without their support, it is difficult, if not impossible, to gather any acceptance of a new product in the market (Dent, 2011). For this purpose, there are certain focus areas which are needed to be analyzed by Nudie if it is going to the introduction of a new product in the market. Nudie and the fruit juice industry have followed the trend of using direct channels with less number of intermediaries. Media started its operations by selling its units in a convenience store. The fruit juice industry is using Supermarkets, convenience stores, retailers, and specialty wholesalers for the distribution of their juice drink products (IBIS World, 2017).
In the selection of channel members for a new product, Nudie can consider many important aspects. The most important criteria for selection of channel member would be the Cash Power, willingness to cooperate, the intensity of coverage, and management strength in planning. These are the ones which are the most important criteria aspects. Other than these, Nudie should also consider the financial strength, level of expertise, Freight experience, and method, Key accounts handled, Ability of Account penetration, and their adaptability with Nudies marketing strategy (Danaher & Rossiter, 2011, p. 30). Furthermore, Nudie can also evaluate by the payment and ordering procedures, ownership of the facilities and equipment, systems and infrastructure used geographic coverage, sales and advertising strategies, and its willingness to share data with Nudie.
As per the research by Jandaghi et al., (2011, p. 19), there are three levels of selection criteria for the manufacturer that has found to be more important and relevant. Thus, Nudie should consider:
1-Financial Strength:
Nudie should assess the financial position and notably the liquidity of the potential channel member. It refers to the research by Jandaghi et al., (2011, p. 19) as the Cash power. Furthermore, the payment procedures and sales strength of the potential channel member are also to be considered. It can further include the assessment of the ownership of the facilities and equipment to be used by the potential channel member.
2-The Planning Process:
The management strength of the potential channel members in the form of their planning process, marketing strategies, after-sales follow up and employee relations are important. However, the most important factor is their planning ability.
3-The intensity of Coverage:
The market coverage by the potential channel members is important for Nudie to be assessed and analyzed critically. The outlets per market, the intensity of coverage or the call frequency and the industry coverage, are crucial aspects to be assessed by Nudie.
4-Cooperation Level:
Most importantly the willingness of the potential channel member in assisting with the distribution and sales of the new products of Nudie is essential. The willingness of the potential channel member to share data related to sales, inventory, distribution, costs, and pricing is important for Nudie to assess (Jandaghi et al., 2011).
Conclusion:
In the end, it is concluded that channel members are long-term partners in the success of a company. The success of the channel members and Nudie are interdependent, and hence both should have the compatibility to work together for a common aim. Thus, it can be concluded that the best criteria for the selection of channel members for Nudie would be to assess on the Willingness of cooperation, financial strength, the intensity of coverage, and Effective planning process of the potential channel member.
References
Danaher, P.J. & Rossiter, J.R., 2011. Comparing perceptions of marketing communication channels. European Journal of Marketing, 45(1/2), pp.6-42.
Dent, J., 2011. Distribution Channels: Understanding and Managing Channels to Market. 2nd ed. London: Kogan Page Publishers.
IBIS World, 2017. Fruit Juice Drink Manufacturing in Australia: Market Research Report. [Online] Available at: https://www.ibisworld.com.au/industry-trends/market-research-reports/manufacturing/beverage-tobacco-product/fruit-juice-drink-manufacturing.html [Accessed 3 January 2018].
Jandaghi, G., Shahanaghi, K. & Irani, H.R., 2011. A Framework for Selection of Intermediary in Marketing Channel. Broad Research in Accounting, Negotiation, and Distribution, 2(2), pp.10-21.
Tanja, K. & Thomas, A., 2014. Cultural capital and strategic social marketing orientations. Journal of Social Marketing, 4(2), pp.94-110.
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