Rust-Oleum and Big-Box, Essay Example

Rust-Oleum Corporation has a well-known product and needs to ensure that its distributors are able to help the company maximize its profits. Since the corporation will be extremely selective when deciding prospective channel members, it is necessary that they select the distribution channel after comparing and contrasting various aspects of their prospects including the reach of the distribution channel, the size of the distribution channel, the customers, and the level of control that will be available.

Since Rust-Oleum Corporation’s product seems to be high in demand, reach will be one of the most important aspects for the company to consider. The product has many applications, and it would be useful to detail these applications and decide on a distributor on this basis. The applications could likely be linked to a specific industry, and distributors that are located where these industries are prevalent would be a useful consideration in this decision making process. Furthermore, since Rust-Oleum is a unique product, it will be difficult to identify a distributor that is experienced with this type of product. As a consequence, it may be useful to research whether a similar product exists and stick with companies that have this kind of experience.

Ultimately, the aspects of reach and skill should be emphasized in the distribution of the Rust-Oleum product because it has a broad range of applications and is a specialized item. As a consequence, selecting prospective channel members that will be able to accommodate these aspects of the product will be an ideal decision.

Modern retailers strive to have a large variety of goods available to their customers to ensure that they will be able to achieve maximal profit. However, many people remain sentimental about the way that sales used to be conducted in small specialized stores. Some specialists believe that the days of giant big-box retailers like Wal-Mart are numbered, however, it is likely that there will always be a need for these types of stores. Ultimately, the preference of giant big-box retailers versus small specialized stores depends on the individual; some individuals would rather put time into their shopping experiences in order to gain the best service and quality products and others like the ability to simply grab all of the items they will require at once without much assistance.

A major problem with giant big-box retailers is that occasionally customers cannot find some of the items on their shopping lists and become frustrated due to the sheer size and disorganization that is associated with these types of stores. However, I do not think that this is a threat to business because even though this is inconvenient, a majority of items the customer needs can be found, and it has been demonstrated that the customer will return in the future despite these occasional issues. Rather than elimination of giant big-box stores, it is likely that these retailers will implement organizational systems that will help customers find the products they need in order to remain competitive. Paper guides or computerized systems would both be useful in this type of situation.

Ultimately, giant big-box stores are still perceived as an easier shopping experienced compared to other retailers even though this may not be the truth. However, it is difficult for smaller, more specialized businesses to compete with the prices and occasional convenience that giant big-box retailer’s offer. While it is possible that giant big-box retailers may have decreased customer preference in the future, they will certainly not be replaced any time soon.