LEXUS, ACURA AND INFINITY

Apply your understanding from the Multimedia PowerPoint Video Lecture Modules as well as the Chapter on DISTRIBUTION STRATEGY to answer the following extremely thought provoking Discussion Exercise, which asks you how you will tackle seemingly simple, but vexing strategic marketing issues that can have far-reaching implications and ramifications. Although most students and people think marketing is “easy,” attempt this exercise, which deals with the topic of DISTRIBUTION STRATEGY and experience what it feels to think and make decisions like a CEO.
LEXUS, ACURA AND INFINITY
It is often said that relative to product, pricing and promotion decisions, designing a marketing channel, and selecting, motivating, managing and controlling channel members, such as agents, wholesalers, retailers and dealers or distribution strategy is perhaps the most difficult aspect of marketing strategy. Further, although product, pricing and promotion decisions are “easily mimicked” by competitors, which do so all the time (.e.g., smart phones, MP3 players) marketing channels decisions, especially new channels, are extremely expensive to develop, hard to copy and take a long time to design and set-up from scratch.
You will recall that many years ago Toyota, Honda, and Nissan introduced their Lexus, Acura and Infinity brands, respectively, yet even today their distribution marketing channels decision is still discussed by many. It would have been much faster and less capital intensive to use their independent and already existing and multifarious Toyota, Honda, and Nissan distributorships to market their new line of cars.
–MARKETING EXERCISE CREATED BY DR. RAJIV MEHTA
DISCUSSION EXERCISE QUESTIONS ON DISTRIBUTION STRATEGY
1. BEING YET ANOTHER EXAMPLE OF MULTI-BILLION DOLLAR GLOBAL DECISIONS MADE BY TOP LEVEL MANAGEMENT, WHICH I HOPE YOU ALL WILL ASPIRE TO ONE DAY IN THE FUTURE (AND YOUR PROFESSOR WILL HAVE CONTRIBUTED IN SOME SMALL WAY IN YOUR SUCCESS), PUT YOURSELF INTO THE SHOES OF THE CEO AND SENIOR VPs OF THESE COMPANIES AND TRY IDENTIFY WHAT WAS THEIR RATIONALE FOR CHOOSING TO SELECT AND USE EXCLUSIVE NEW AUTO DEALERSHIPS TO MARKET THEIR NEW BRANDS OF AUTOMOBILES KNOWING FULLY WELL HOW CAPITAL INTENSIVE AND TIME CONSUMING THEY ARE TO SET-UP. JUSTIFY YOUR DECISION BY OFFERING SOLID RATIONALE IN DEFENSE OF YOUR THOUGHTS.
Type the question above, then write your answer here.
Indicate Word Count, (e.g., Words= 600) [minimum or more if you desire. The more ELABORATE AND EXTENSIVE your response, the better. DO NOT count the number of WORDS in each QUESTION as part of your response.]