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When should a company use company-owned retail outlets?

  • When some high-tech products are first introduced to the market, demand may not be sufficient for mainstream retailers to carry the products.  Company-owned retail stores may be used to build the demand and then mass-market channels may become more interested.
  • Independent intermediaries don’t offer the level of customer service that a particular company wants its products to receive.
  • The company wants to fully integrate retail sales into its marketing strategy.
  • Companies with well-known brand names and a complete product line (end-to-end solution).
  • Products for which there is a high amount of buzz or observability in use.
  • Products where customer trial at the point-of-purchase can positively affect customer purchase intent (i.e., relatively easy to use and experience).
  • High-growth product categories.
  • “Lifestyle” type products and/or strong focus on consumer markets (as opposed to business-to-business).
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