Leosb: The Distribution Channel Decision

The managing director of Leosb Private Limited has to select a distribution channel for his factory-produced roti (a flat bread popular in India) in the city of Hyderabad, a large metropolitan city in India. In July 2022, he considered the best distribution channel, which would offer access to retail consumers, and be cost effective, easy to scale, and expandable to related product categories. His options were using one or more distributors, selling to modern trade outlets, developing a sales team to sell directly to retail outlets, or selling directly to the consumer through Leosb’s website and mobile app. He was running out of funds, so his time was limited.

The case context of a start-up is easily relatable and relevant to postgraduate-level management students. This case can be taught in marketing courses while discussing the topics of intensive distribution, service output delivery in sales and distribution, and channel management.<br><br>This case compares all the main routes of reaching omnichannel consumers: distributors, small independent retailers, large format retailers, and direct-to-consumer online orders. It provides ample quantitative and qualitative information for comparing the commonly available intensive channel options. After completing the case and assignment questions, students will be able to do the following:<ul><li>Understand the qualitative and quantitative aspects offered by different distribution channels.</li><li>Discern the specific service outputs delivered by the different intensive distribution channels under consideration.</li><li>Evaluate the different distribution channels in terms of desired service outputs.</li><li>Select a distribution channel that best meets the selection criteria and understand the trade-offs involved in making a choice.</li></ul>

• distribution channel
• intensive distribution
• service output desired
• service output provided
• omnichannel consumer
• India