Channel Design & Structure
Choose direct or intermediary channels based on coverage, control, margin and service.
Cheat sheet
Choose direct or intermediary channels based on coverage, control, margin and service.
What to check first
Estimate outlet reach, delivery cost and credit exposure for both routes.
How to make the call
Use direct service where density supports it and distributors where coverage adds value.
OpenStax · Retailing and wholesaling · further reading for retail & services
Indian practice case
Fictional scenario
A Coimbatore kitchen tool brand weighs distributors against direct retail supply.
Reveal the step-by-step solution
- Diagnose the problem.
Estimate outlet reach, delivery cost and credit exposure for both routes.
- Work through the evidence.
Compare contribution after returns and working-capital costs, and identify where channel conflict could arise.
- Recommend and validate.
Use direct service where density supports it and distributors where coverage adds value.
More Indian cases
Interview question
How would you use channel design & structure to make the decision in this case? Explain which data you need first and what would change your recommendation.
See what a strong answer includes
Compare contribution after returns and working-capital costs, and identify where channel conflict could arise. Use direct service where density supports it and distributors where coverage adds value.