1.

The case of XYZ Manufacturing P.L.C highlights a key issue of market segmentation
practices and the importance of consumer involvement in the product development process.
The company's initial failure to consider consumer input in the development of their bicycle
designs resulted in a lack of satisfaction among consumers and subsequently a relative
product failure in the market.

Realizing the need for restructuring, the company made the shift from overemphasis on
production to marketing, and rightly did so. The marketing unit conducted a detailed analysis
and suggested the need to redefine market segments based on consumer attitudes. By
involving consumers with a positive attitude towards using bicycles as means of
transportation, the company was able to develop new designs that met their expectations and
needs. However, the unexpected response from consumers with less favourable attitudes
towards using bicycles as means of transportation highlights the need to consider different
factors beyond attitude in market segmentation practices.

This led to the establishment of a cross-functional research team to investigate and suggest
corrective actions. The team segmented the market based on the mix of attitude, benefit, and
income of consumers resulting in eight segments. This approach allowed for the development
of different versions of the product to meet the expectations of the consumers with different
needs, including those with low income and for environmental sustainability.

As a marketing manager of XYZ Manufacturing P.L.C, several key lessons can be drawn
from this case.
Firstly, involving consumers in the product development process is crucial for creating
products that meet their needs and expectations. Secondly, the use of market segmentation
based on attitude, benefit and income can allow for targeted product development, which has
the potential of addressing specific consumer needs and increase the chance of success in the
markets.
In addition to this, the case highlights the importance of cross-functional collaboration in
addressing product failures. By making it the responsibility of all functional units to identify
and satisfy consumer needs, the company can create a more aligned approach towards
product development that can potentially lead to greater success in the market.

Generally putting , while the case of XYZ Manufacturing P.L.C highlights the potential
drawback of not involving consumers in the product development process and segmentation
practices, it also highlights the opportunities for growth and success that can be achieved
when these practices are appropriately implemented. Therefore, as a marketing manager, the
responsibility lies in understanding consumer needs, working collaboratively with all
functional units, and ensuring that products are developed and marketed in a way that meets
these needs.
2.
When developing a distribution strategy for a business organization, there are several factors
that should be taken into account. These factors include:

Target market: The distribution strategy should be tailored to the specific needs and
preferences of the target market. For example, if the target market is primarily older
individuals, then a distribution strategy that stresses strong online presence may not be
effective. Product characteristics: The characteristics of the product, such as its size,
weight, fragility, and perishability, will impact the distribution strategy. For example, a
fragile product may require special handling during transportation, while a perishable product
may require expedited shipping.

Competition: The distribution strategy should take into account the distribution strategies
used by competitors in distribution. For instance, if competitors have strong distribution
networks, then the business organization may need to develop a stronger network in order to
remain competitive. Resources: The distribution strategy should be feasible given the
resources available to the business organization. This includes financial resources, as well as
the availability of personnel and technology.
Legal and regulatory requirements: The distribution strategy must comply with all relevant
legal and regulatory requirements, such as import/export regulations and safety standards.

When we come to service businesses, we think there are a lot of unique characteristics of services to
be considered by service industries to choose the most appropriate distribution channels. Here are
some of them:

Intangibility: Services are intangible, meaning they cannot be seen, touched, or felt. This
makes it difficult to convey the value of the service to customers, and requires special
consideration in terms of how the service is marketed and distributed.
Inseparability: Services are often produced and consumed at the same time, which means
that the delivery of the service is often inseparable from the service experience. This requires
careful attention to the delivery process and the training of service personnel.

Variability: Services can be highly variable in terms of quality, depending on who delivers
the service and how it is delivered. This requires careful standardization of service processes
and training of personnel to ensure consistent quality. Perishability: Services are perishable
in that they cannot be stored and resold at a later time. This requires careful management of
service capacity to ensure that services are available when customers need them.
Having considered these factors, we think the most appropriate and feasible distribution
channels for service giving industries are direct, indirect and online distribution channels.

Direct distribution: Direct distribution involves selling services directly to customers

without intermediaries. This can be done through physical locations or online channels.
Direct distribution allows service providers to have greater control over the customer
experience and to collect valuable customer data. It can takes place in the form of online and
partnership distributions.
Online distribution: Online distribution involves using digital channels such as websites,
social media, and mobile apps to sell services directly to customers. Online distribution can
be an effective way to reach a wide audience and collect valuable customer data. However, it
requires careful attention to website design, search engine optimization, and online
marketing.

Partner distribution: Partner distribution involves partnering with other companies or

organizations to sell services to their customers. This can be an effective way to reach new
markets and increase sales volume. However, it requires careful selection of partners and
coordination of marketing efforts.

Indirect distribution: Indirect distribution involves using intermediaries such as agents,

brokers, or resellers to sell services to customers. This can be an effective way to reach new
markets and increase sales volume. It includes franchising and licensing.
Franchising: Franchising is a form of indirect distribution in which a service provider grants
a franchisee the right to use its brand and business model to sell services in a particular
geographic area. Franchising can be an effective way to expand into new markets while
maintaining control over the customer experience and brand identity.

Licensing: Licensing is a form of indirect distribution in which a service provider grants a

licensee the right to use its intellectual property (such as trademarks, patents, or copyrights)
to sell services. Licensing can be an effective way to generate revenue without incurring the
costs of directly selling services.
In conclusion, we think the most feasible distribution strategies and channels services depend
on the unique characteristics of the service being offered , the target market, and the business
objectives.