COLLEGE OF BUSINESS AND MANAGEMENT SCIENCES

SCHOOL OF BUSINESS
MASTER OF BUSINESS ADMINISTRATION (MBA) 1, 2021/2022

MBS 7205: Marketing

Course Facilitators:
1. Prof. Peter K. Turyakiira (PhD)
2. Dr. Sarah Bimbona (PhD)

FOCUS: A scholarly paper on

i. Designing and coordinating distribution channels
ii. Building a Stronger brand and Digital Management
A CASE STUDY OF aYo UGANDA LIMITED
GROUP 12 SCHOLARS

No. Name Reg. No. Signature

1 Muwanguzi Joshua Clever 2021/HD06/20495U
2 Asinai Paul 2021/HD06/20403U
3 Mulyazaawo Matthias 2021/HD06/20486U
4 Niwagaba Robert 2021/HD06/20540U
5 Edith Namusoke 2021/HD06/20524U
6 Ekson Ngumire 2021/HD06/20538U
CONTENTSs
1.0 ABSTRACT ............................................................................................................................................ 3
2.0 INTRODUCTION ............................................................................................................................ 3
2.1 Meaning of a Distribution Channel ........................................................................................... 4
2.2 Industrial Distribution channel Design ......................................................................................... 5
2.3 Analysing the Needs of the Customer................................................................................................. 5
2.4 Establishing Channel Objectives ........................................................................................................ 6
2.5 Considering Channel Constraints........................................................................................................ 6
2.6 Listing Channel Tasks......................................................................................................................... 6
2.7 Identifying Channel Alternatives ........................................................................................................ 7
2.8 Evaluating Alternate Channels............................................................................................................ 8
3.0 BUILDING A STRONGER BRAND .................................................................................................... 9
Building a Strong Brand. .......................................................................................................................... 9
4.0 DIGITAL MARKETING ..................................................................................................................... 11
4.1 Types of Digital Marketing ............................................................................................................... 12
Email Marketing ..................................................................................................................................... 13
5.0 CRITIQUE TO THE SCENARIO ........................................................................................................ 13
6.0 RECOMMENDATION ........................................................................................................................ 14
7.0 CONCLUSION ..................................................................................................................................... 15
8.0 REFERENCE........................................................................................................................................ 16
1.0 ABSTRACT
Channel coordination has a strategically important role in a multi-channel context. In this paper,
we focus on the strategic design and coordination of distribution channels with an aim to optimize
performance of a firm through choosing and optimizing the available opportunities using an
analytical model to show that the brand differentiation is not a dominant distribution strategy to
coordinate the channel conflict and improve channel performance; the company can sell identical
brands through its online and traditional channels and actively employ a cooperative structure with
profit coordination to maximize the entire distribution of channel profit and create a win–win
channel strategy for each channel member. In addition, we also highlight the concept of digital
marketing opportunity and typologies on the whole distribution channel performance under the
different structures.
Marketing is a social and managerial process by which individuals and groups obtain what they
need and want through creating and exchanging products and value with others. The major concept
in marketing is human needs. Human need is a state of felt deprivation. Marketing involves
offering a product or service. A product is anything that can be offered to the market to satisfy
want or a need while a service is any activity or benefit that one party can offer to another which
is essentially intangible and does not result in ownership of anything.
We take a case study of aYo Uganda, a Micro insurance broker in partnership with MTN & Sanlam
group, to critique their current channel selection and recommend some operations that they can
use to optimize the existing opportunity

2.0 INTRODUCTION
Management guru Peter Drucker predicted that in the twenty first century business, the biggest
change would not be in new methods of production or consumption, but in the distribution
channels. (Doyle, 1998, s325). Distribution channels are the paths that products and services take
on their way from the manufacturer or service provider to the end consumer.
Creative well-executed marketing channel strategies provide some of the more potent means by
which companies can enhance and stimulate their efforts and energies on the other business
functions, such as finance, production and research and development or on elements other than
distribution in their attempts to secure competitive advantage. The channel strategy area of
business is undergoing turbulent change. For years, it was considered a relatively unchanging
and un imaginative part of marketing, and business marketing managers rarely tampered with the
traditional channels. Although it was termed “the long-neglected side of marketing”, this attitude
appears to be changing. (Haas, 1995, s409).
From the view point of the manufacturer, a key aspect of marketing strategy is to determine how
best to go to market (Bowersox & Cooper, 1992, s10). Marketing channel decisions are among
the most critical decisions facing management. The channels chosen intimately affect all the
marketing decisions. (Kotler, 2003)
 2.1 Meaning of a Distribution Channel
A distribution channel is the route through which goods and services pass from producers to
consumers or business users. The main purpose distribution channel is to have the right product
delivered when the customer wants it, and at the price customer is willing to pay for it (Duric and
Stojiljkovic, 2018). Distribution channels refer to the network used to receive the product from the
manufacturer or its creators and ultimately to the end-users (Bui and Nguyen, 2021). To Segetlija,
Mesaric and Dujak (2017), a channel of distribution is the route along which goods and services
flow from producer or manufacturer through marketing intermediaries such as wholesalers,
distributors, and retailers to the final user.

Therefore, a distribution channel can also be defined as a set of interdependent organizations

involved in the process of making a product and service available for use or consumption by the
consumer. It is systems of mutually dependent organizations that are involved in the process of
making goods or services available from producer through marketing intermediaries such as
wholesalers, distributors, and retailers to the final user. A distribution channel may involve the
firm’s own field sales teams, sales representatives, distributors, the online channel among other.
Therefore, it must choose channels that will efficiently and cost effectively serve the targeted
customer.

Distribution channels are important to businesses as they allow for the smooth delivery of goods
or services to a customer. If a business does not source the best collection of businesses for this
purpose, it can lead to unhappy customers and an inadequate provision of services.

An Illustration of a Distribution Channel with the Main Participants

Retailers

Producer Wholesaler Retailers Consumer

Source: Author

The main participants in the distribution channel are; the producer, the intermediaries who may be
the wholesalers, retailers and the final user of the commodity. This may be an individual consumer
or business customers. Note that with online ordering, some retailers are disappearing and thus the
distribution channels are getting shorter.
For the case of aYo Uganda, the distribution model is such that from the company, the service is
sold to the customer through either assisted channels (involving a 3rd party or agent), or through
the un-assisted channel (from the company to the customer usually using the digital platforms).
The assisted channel is comprised of field agents (both owned or out sourced from other
partners) and the Telesales agents (who sell the service through a telephone engagement. A
service like insurance as sold by aYo can be

2.2 Industrial Distribution channel Design

Marketing channel decisions are one of the critical decisions that companies face. They
determine how consumers can gain access to a company’s products and services. These channel
decisions are also a matter of concern at the cost point of view.
It is very important that a distribution channel is properly aligned to satisfy the needs of channel
members and also for the success of any industrial marketing strategy. A good industrial channel
creates the communication and physical supply linkages with existing and potential
customers. Channel designing in industrial markets is a dynamic process that consists of either
developing the new channels or modifying the existing ones.
Designing distribution channels is a process that requires making a sequence of choices and
decisions related to the structure of marketing channels, channel procedures, the choice of
intermediaries, organization of relationships and activities of all channel members and conflict
resolution (Duric and Stojiljkovic, 2018). A well-designed channel structure helps to achieve the
desired marketing objectives. A channel structure consists of types and number of middlemen,
terms and conditions of channel members, number of channels.

The design of distribution channels refers to the decisions that come from the organization to create
a new distribution channel or from the taken decisions to change an existing distribution channel
(Karaxha and Karaxha, 2015). According to Rosenbloom (2013) specifies seven phases in
marketing channel design namely; recognizing the need for a channel design decision; setting and
coordinating distribution objectives; specifying distribution tasks; developing possible alternative
channel design; evaluating the variables affecting channel structure; choosing the best channel
structure and lastly, selecting the channel members. On the other hand, according to Kotler and
Keller (2009) in Karaxha and Karaxha (2015), the design of a distribution channel includes the
analysis of consumers’ needs, setting the objectives of the marketing channel, identifying the main
alternatives of marketing channels and their evaluation. Below, the various aspects of the
distribution channel are presented.
2.3 Analysing the Needs of the Customer
Companies have to adapt quickly to consumers’ changing needs and buying behavior. When a
marketer designs a marketing channel, he must understand the service output levels desired by the
target customers. Different customers have different levels of service requirements. A high
potential customer needs to be offered effective and professional service backup, ensured
availability of varied products compared to the low potential customer. The marketing channel
designer has to know at this stage itself that providing superior service output means increased
channel costs and higher prices for customers.
2.4 Establishing Channel Objectives
Channel objectives are a part of and result from the company’s marketing objectives that need to
be stated in terms of targeted service output levels. Profit considerations and asset utilization
must be reflected in channel objectives and the resultant design. It should be the Endeavor of the
channel members to minimize the total channel costs and still provide with the desired level of
service outputs. Channel objectives keep varying depending on the characteristics of the
products. For example, while a customized non-standard product requires company sales force to
sell directly, products like HVAC (Heating, Ventilation and Air-conditioning) are either sold by
the company or its franchised dealers.
2.5 Considering Channel Constraints
The industrial marketer develops his channel objectives keeping into consideration various
constraints like the company, competition, the environment, product characteristics and the level
of service output desired by the target customers.
1. Company: If a company has financial limitation as constraint, then it may restrict its
direct distribution approach through company sales force to few high potential customers.
2. Competition: If a competitor has been very successful through direct service, then it may
force all other firms also to adopt the same strategy of direct selling.
3. Environment: Economic conditions, legal regulations are the environmental factors that
affect channel design. During recession, producers use economical ways to sell the
products to avoid additional costs. Similarly, the law looks down upon those channel
arrangements that tries to build a monopoly market or minimize competition.
4. Product characteristics: As already mentioned, complex and non-standard products
require direct distribution without any intermediaries. E.g., If an industrial marketer is
providing customized machinery to his customer, then he deals directly with him rather
than involving any intermediary to understand the customer needs better.
5. Customer: The industrial marketers depend on intermediaries to offer services to
customers who are either giving less business or are located at far-off places and prefers
to serve the nearby or high potential customers by themselves.
2.6 Listing Channel Tasks
The industrial marketers have to creatively structure the necessary tasks or functions to meet
customer requirements and company goals. They have to first make a list of various tasks to be
performed, identify the critical tasks, take objective and realistic decisions on which tasks can be
effectively performed by the company and which cannot be performed due to certain
constraints. The careful analysis of customer needs, establishing objectives, considering
constraints and listing the channel tasks form the backbone of channel design process. Once
these aspects are delineated individually, the next step of identifying and evaluating channel
alternatives starts.
2.7 Identifying Channel Alternatives
There are four issues that are involved in identifying the channel alternatives. They are: the
types of business intermediaries, the number of intermediaries, the number of channels and the
terms and responsibilities of each channel members.
• The types of business intermediaries: There are different types of intermediaries that
the industrial marketers should identify. They have to consider various factors like the
tasks to be performed, product and market conditions before selecting
either manufacturer’s representatives or agents, industrial distributors, brokers,
commission merchants or value-added resellers. The marketers should search for
innovative or combination of marketing channels.
• Number of intermediaries: The manufacturers have to settle on the number of
intermediaries they wish to use in their channel structure. They may either go for
intensive, selective or exclusive distribution.
• Intensive distribution: In this strategy, standard products that are purchased more
frequently and have less unit value like raw materials and other convenience goods are
distributed intensively i.e., products are stocked in numerous outlets so as to make them
available to varied customers on demand.
• Selective distribution: The industrial marketer selects few intermediaries to distribute
the products to the target customer. This gives the marketer to develop a good working
relation with the selected intermediaries, have better control, incur less costs and finally
expect a better than average selling effort.
• Exclusive distribution: This strategy helps to enhance the product image and is more
prevalent in consumer markets where some intermediaries exclusively deal and distribute
the products of one manufacturer. They are not allowed to handle the competitor’s
products. The manufacturer expects aggressive selling by the intermediaries and tries to
have control over their pricing policies, promotion strategy, credit terms and other
services.
• Number of channels: Industrial marketers need to serve various market segments. This
necessitates them to use more than one channel for distributing and marketing their
products. This multi-channel approach helps them not only to increase their market share
but also reduce their costs. However, the industrial marketers need to take care of
possible channel conflicts like proper demarcation of territory to channel members to sell
and serve the customers in their respective areas.
 • Terms and responsibilities of Channel Members: There are various terms and
conditions which the industrial marketer must make clear to the participating channel
members like the responsibilities and tasks, conditions of sale and territorial rights that
would enable both of them to enhance their performance.
• Responsibilities and tasks: In order to avoid any future disagreements, there should be
clarity in the roles of both the industrial marketers and the channel partners. Each should
comply with the commitments about their individual responsibilities and tasks to be
performed.
• Conditions of sale: It should be clearly mentioned well in advance about the discounts
offered by the manufacturers to the distributors, the commission to be paid to the agents
or brokers. Other terms relating to warranty period, replacement of defective parts also
should be appropriately stated.
• Territorial rights: The territory between the distributors should be well demarcated so
as to avoid any future confusion that may lead to legal issues.
2.8 Evaluating Alternate Channels
There are several channel alternatives available to the industrial markets. They have to determine
the best among the alternatives by evaluating them based on the following criteria:
1. Economic Performance: Different channel alternatives generate different levels of sales
and incur different levels of costs. An industrial marketer has to pose a question whether
sales generation would be more by direct selling through company sales force or through
the channel members. Many of the industrial marketers believe that sales will be more
from company sales force as they exclusively concentrate on company’s product, they are
given proper training to sell the product, they show more aggressiveness as their career
depends on company’s success and finally customers prefer to deal with the company
directly. But it may also happen that the intermediary can sell more than the company
sales force. The possible reasons for this could be the agency having many sales people
with it or its sales force are much motivated with the commission offered by the company
or the customers prefer to deal with agents who have extensive contacts. The marketing
manager has to similarly estimate the total costs of selling through different channel
members.
2. Degree of control: This is another important factor while evaluating the channel
alternatives. An industrial marketer exercises different levels of control over different
channel members. The degree of control is more on company sales force and least on
distributors. The distributor may concentrate more on those products that earn him high
products rather than following the instructions of the manufacturer to push less preferred
products. Similarly, an agent entertains his potential customers most rather than
concentrating on manufacturer’s product.
 3. Degree of adaptability of channel members: With the market changing dynamically,
the channel members should have the capacity to adapt themselves to the changing
environment. The industrial marketer must be able to control as well as modify the
channel structure. Each channel member should be committed to the agreement they have
with other members.
For example, a Tyre Company who is trying to enter into the Ugandan market is a manufacturer
of safety systems for vehicle tyres whose products allow the vehicle to continue to be driven
even if the tires burst or are shot out. The main customers for the systems are police forces,
security companies, emergency services like ambulance and fire service, armies, trucking
companies, and even the general public. The organization cannot serve all types of customers
through a single distribution channel, so depending on the size of the market, value and the level
of usage, the market for safety systems can be divided into three segments’ i.e., Government
Organizations (Ambulance, fire services, armies), Private sector (Original equipment
manufacturers like Trucking companies & vehicle manufactures), General public.
In the above scenario, channel 1 comes under direct distribution channel where the organizations
directly deal with the customers. This distribution channel does not have any intermediaries like
distributors, wholesalers, retailers etc.
Direct distribution channel the manufacturer’s own sales force deals directly with the customer
segments, and the manufacturer has the complete responsibility for performing all the required
channel tasks. Channel 2 and channel 3 come under indirect distribution channels. Indirect
channel distribution uses one or more intermediaries like distributors, retailers, sales
representatives etc.

3.0 BUILDING A STRONGER BRAND

Building a Strong Brand.
A brand is a name, term, sign, symbol, design or a combination of these which is used to identify
the goods or services of one seller or group of sellers and to differentiate them from those of
competitors. A brand covey a specific set of features, benefits and services to buyers. It is a
mark, a tangible emblem which says something about the product.
A company has to define its overall Brand Strategy. Brand Strategy is the long-term plan to
achieve a series of long-term goals that ultimately result in the identification and preference of a
company’s brand by consumers. Brand strategy can be in form of the following that a company
may choose from;
a) Line Extensions- This strategy involves using a successful brand name to
introduce additional items in a given product category under the same brand
name.
b) Brand Extensions- this strategy aims to use a successful brand name to launch
new or modified products in a new category. Brand extensions give a greater
 market share and help the company to enter new product categories more easily as
it gives new product instant recognition and acceptance.
c) Multi-Brand strategy- This strategy is where a company introduces new brand
names in the same product category. This implies that the company is marketing
several products from the same market as competitors. This strategy is common
for financially stable and resourceful companies.
d) New Brand Strategy- the new brand strategy simply means new brand names in
new product categories. This strategy is employed where an existing brand is at
saturation and heading to a decline stage.
There is a reason brand strategist who know how to build a strong brand can charge top-dollar
for their services. There are more businesses in each niche than ever before, so a smart brand
building strategy is necessary to differentiate yourself in this crowded marketplace. Follow these
five brand building tips to define and exploit your competitive advantage.
1 – Define Your Brand
There are three types of brands, and how to build a strong brand varies slightly depending on
your type of brand.
• Service Brand – Offers various forms of service to a specific niche. A marketing
consulting firm is a service brand.
• Product Brand – Tied to a specific product mix. The Keurig brand of coffee machines is
an example of a product brand.
• Retail Brand – Sells multiple products and often sells many different brands. Your local
grocery store is a good example of a retail brand.
Figuring out your brand type is the first step to defining your brand identity. What is your
brand’s unique selling proposition? Why should customers choose your brand over your
competition?
2 – Position Your Brand for Success
Your brand positioning strategy is how you get your brand noticed by the right types of
customers. Have you ever eaten at a hole-in-the-wall restaurant with excellent food and
wondered how more people didn’t know about the place? It’s a classic example of bad brand
positioning. Such a restaurant offers a great product, but they don’t reach as many customers as
they could.
There are many types of marketing strategies brands use to position themselves in their niche.
One of the most effective marketing strategies is search engine optimization. Creating quality
content on a consistent basis that answers the questions your target customer has when they turn
to a search engine is the best way to position your brand as a thought leader in your industry. In
the case of aYo Uganda, aYo positions itself as a digitalized provider of insurance solutions that
are affordable, relevant, accessible and easy to use.
3 – Develop and Implement an Amplification Strategy
Once you have implemented a keyword and content strategy for your business, you need to
amplify that content. This is where social media marketing comes into play. With increased
usage and access to social media platforms, businesses or entities need to build a strong
community around their brand on social media in a bid to increase brand loyalty. Create a
Facebook group where your customers can connect with each other, as well as with the
employees behind the brand.
aYo Uganda has been using influencer marketing tools to amplify certain company objectives.
To identify and connect with key influencers in your niche that may be interested in working
with your brand requires an investment of time and money, but if you invest well, it has massive
reward.
4 – Humanize Your Brand
Today’s consumer has no desire to do business with a faceless brand. This is especially
important for brands who target millennials. Don’t lose sight of the fact that part of your brand
identity is you. Make sure that your brand voice is based on your personality. It’s the recipe for
an authentic brand.
In the case of aYo Uganda, being active on social media platforms like Facebook, Twitter, etc. is
actively done to interact with their brand’s community and showcase their personality and stay
close to their customers.
5 – Measure Results and Tweak Your Brand Strategy Regularly
A brand building strategy is incomplete without a way to measure success. Choose your key
performance indicators based on your specific brand goals. Set up a routine for monitoring your
KPIs monthly, weekly, and daily. Tweak your brand strategy to include more of what is working
and less of what isn’t.
In the case of aYo Uganda, measuring success is a key element of the company’s operation. On a
daily basis, reports are released to indicate the impact of their brand building efforts in the form
of product uptake. Surveys such as the Net promoter scores (NPS) are done monthly to check on
the ability of their customers to recommend others to take up their products.

4.0 DIGITAL MARKETING

Digital marketing, also known as online marketing, refers to advertising delivered through digital
channels to promote brands and connect potential customers using the internet and other forms of
digital communication. As times are changing, so is the way customers engage with
advertising. Digital marketing is an essential component of a comprehensive marketing
strategy. It involves strategies that are via an electronic device and the internet. Below are some
tools which are used to deliver exceptional, effective digital marketing campaigns
4.1 Types of Digital Marketing
Search Engine Optimisation
Search Engine Optimisation has become a popular term associated with digital marketing. Using
various methods to optimise a website will give it higher rankings on search engines such as
Google and Yahoo. This can increase traffic and engagement on your website. Google utilises a
sophisticated algorithm to determine your website rankings. There are several simple changes
which can be made to a website to improve rankings:
• Presenting original content such as blogs.
• Site usability, especially on mobile devices.
• Make use of keywords that are relevant to your business.
• Backlinks to your website.
Social Media Marketing
Creating content and interacting on a social media platform can increase your audience and
brand awareness. Popular platforms include Facebook, Twitter, YouTube, and LinkedIn. By
using these, you provide content that can be shared for increasing exposure. It is a simple
method of information propagation. It will also create a sense of brand reliability with the
consumer, through seeing people they trust endorse your business on social media.
Influencer Marketing
Social media influencers cultivate and grow their following. They also create a sense of trust
and loyalty with their followers. Working with an influencer can bring your business to their
followers. Content options include a social media post, blogs, or product placement through a
YouTube video. By partnering with relevant influencers, it is a sure-fire way to get your
business out there and cement brand trust online.
Pay Per Click (PPC)
This is essentially a way of increasing website traffic by paying for it. It contrasts with SEO,
which is organic (unpaid) traffic. You pay per interaction (click) made with an ad. There are
two predominant PPC channels to utilise:
1. Google Ads
Google Ads improves your website visibility on a Google search query. It allows you to create
an ad campaign linked to specific relevant keywords. It can also incorporate Google Maps,
which will promote your business based on location.
 2. Social Media
Platforms such as Facebook analyse and track user activity. Ads are targeted at a relevant
audience of your choice. There are different pricing options available to suit your business
needs, and you can really drill down targeting to only appear for specific individuals.
Email Marketing
Sharing relevant content with a subscribed list can promote your business offerings. Emails can
be informative or create a call to action. Engaging content builds brand awareness, and emailers
have some of the highest open rates in digital marketing.
These are only some of the methods that should be included in an effective digital marketing
strategy. Identifying KPi’s, implementing digital marketing tools, and then measuring their
effectiveness are core and will undoubtedly lead to success.

5.0 CRITIQUE TO THE SCENARIO

From the view point of the manufacturer, a key aspect of marketing strategy is to determine how
best to go to market (Bowersox & Cooper, 1992, s10). In the long run, it is crucial that a
company goes to market the right way and not just go to market. A PESTEL analysis is one tool
that can be used to determine when to go to market, where to go to market and ultimately how to
go to market. Any company needs to understand the mix of their distribution channels in order to
guarantee sustainability of their operations. Below are some key critiques to the aYo scenario.

• Corporate Identity
The need to align communications from the company to certain corporate guidelines limits the
go to market strategy and approach especially from a marketing angle. Certain campaigns cannot
be run and certain opportunities can not be leveraged owing to the nature of corporate identity of
the entity. This slows down the aYo Uganda’s engagements and opportunity in the market
especially for their target market.

• Shortage on a 360 communication

When products are not visible at all times in the eyes, ears and minds of customers and usually
breaks in advertisement or communication, businesses can result in a retardation in the sales
numbers. The aYo customer

• Education gap on insurance products.

Insurance requires a lot of education and not just persuasive advertisement. Looking at aYo,
there is need to increase on the education aspect in their marketing strategy.

• Little Language diversity

With the target market being the upper lower segment of the market, whose education levels are
not as high, aYo’s communication are mostly English and Luganda based. For customers in the
regions besides the central region, information about the insurance services they propose, are not
well understood because of the complexity of insurance in itself.

• No proper market segmentation

Insurance needs change relative to different demographics and some of the products currently
being offered work for a particular segment of the target market and not the others. The aYo
scenario is still lacking where communication is to a particular segment of the market and not the
others.

• Acquisition and no retention

An essential part of the Insurance business is retention of existing business. The aYo strategy has
been hinged primarily on acquisition of customers and are currently hit by a low persistency rate,
with many customers becoming dormant hence non-revenue generating.

• Communication over flow

Spamming Messages usually create a negative customer experience and can end up instead
retarding revenue growth. The current aYo scenario involves quite a number of SMS triggers to a
customer in their first month which may end up being disastrous.

6.0 RECOMMENDATION

• Ensure a 360 communication

In their communications, aYo should ensure a 360 communication should be We recommend
Products should be visible at all times in the eyes, ears and minds of customers and usually
breaks in advertisement or communication can result in a retardation in the sales numbers.

• Improve customer Education on insurance products.

Insurance requires a lot of education and not just persuasive advertisement. Looking at aYo,
there is need to increase on the education aspect in their marketing strategy.

• Increased Language diversity

Since aYo plans on a national coverage, we recommend a scaled diversification in the language
comms with specific effort tailored towards customized engagements for the different parties in
the different regions.

• Proper market segmentation

Citing from what their telco partner is doing, we recommend that aYo does more segmentation
of their customer base in order to tailor Insurance products towards the specific customer needs
relative to different demographics of their target market.

• Improved customer retention

As a supplement to their acquisition strategy, aYo should customize their comms to align with a
retention strategy in order to boost their unit return per enrolled customer.

• Manage communication flow

The aYo SMS triggers to a customer in their first month should be further well-spaced in the in-
life journey of the customer in order to rather enhance their experience and not spam them with
continuous messages over a small period of time.
We also recommend a further analysis by aYo and other companies’ marketing department to
check, the following
• What are the key strengths contributing to aYo brand’s success?
• What are the weaknesses do you need to improve to reach the next level of success?
• What opportunities have your strengths put you in a position to capitalize upon?
• What threats exist that could keep your brand from maximizing its potential?

7.0 CONCLUSION

The marketing literature has made significant progress towards a better understanding of how
firms can effectively design and manage their channels of distribution. However, the complexity
of today’s channel systems raises additional issues that remain unaddressed. We decipher the
different channel strategies and suggest several possible avenues to relate multiple channel
design and management to channel-system, channel-relationship and customer-level outcomes.
In particular, we see a great opportunity to integrate multichannel customer management and
traditional channel design research.
Further, different companies need to improve their understanding of how channel systems evolve
over time and why they may or may not need to deviate from “optimal” channel structures. The
opportunity around building a brand is a very imminent one and the availability of the digital
marketing structure is very pertinent in the realization of that objective. Finally, we argue that
future relationship research should account for cross-level effects and incorporate variables at
more than one relationship level for the different channels in order to choose the optimal channel
mix.
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