Question

My newly established FMCG brand launches its brand in a foreign country, what should be its distribution channel (direct involvement or indirect involvement?) What are their advantages and disadvantages? (international marketing perspective)

Answer 1

It would be best if you used direct involvement as the distribution channel for launching your newly established brand in a foreign country.

There are various reasons for that. Direct involvement through exports is one of the most natural methods to enter into any new market. Moreover, it is also suitable because it does not have an established supply chain system and the foreign market. So they would find it challenging to find and deal with intermediaries for the indirect involvement in their distribution channel.

Advantages:

1. The brand will have total control over the international market and how it will get sold and marketed.

2. Through direct involvement, the brand will get to know more about the customers and build good relationships with them.

3. direct involvement allows the brand to distinguish itself from the competition in the international market.

4. Brand will not have to share any portion of their profits to any intermediary.

Disadvantages:

1. it will be very costly for the band to go for direct involvement, especially when we talk about entering into a foreign market.

2. brand will have limited coverage if they go direct responsibility for overseas customers.

3. Maybe, the brand will not be able to establish a Goodwill in the foreign market because the exporters name might be unknown.