RCP - CASE ANALYSIS

RCP - Case Analysis

RCP - Case Analysis

Q1 A) Explain what is meant by the phrase “the economic environment is particularly challenging”.

ANSWER: The phrase refers to the economic environment when opportunities are available for the businesses to grow while enhancing its market share by competing with other companies in industry. Intense competition builds pressure on companies to focus on ways that can provide competitive edge to the company while maximizing the efficiency and performance of company.

Q1 B) Identify ONE non-economic external environment factor [force] and explain how it might have a positive impact on RCP.

ANSWER: Non-economic external environment factor of RCP include environmental sustainability. It provides significant benefit to the company to differentiate itself from the competitors based on its approach towards the environment and community. In current business environment, price is not the only differentiating factor to augment the positive impact about a company. Firms are moving towards green marketing approach as part of its corporate social responsibility. Economic sustainability initiatives such as recycling of its industrial waste to protect environment will enable RCP to convey a positive public message in the market. It will enhance the marketing approach of company to target its clients based on influencing their perception and deriving their demand by targeting the need of society of protecting environment (Barry, 2000). In this way, people will start associating positive characteristics with the brands of RCP.

Q2 A) What is meant by 'distribution channel'?

ANSWER: Distribution channel refers to the channel through which goods or services are moved from the manufacturer to the consumer(Barry, 2000). It may be direct or it may have multiple intermediaries in between manufacturer and consumers.

Q2 B) Describe the distribution channel of RCP.

ANSWER: RCP has a direct distribution channel as stated by marketing director of company. RCP aims at directly selling its products to customers to ensure timely delivery of offerings.

He refers to the fact that RCP ensures that its products are delivered directly and precisely on time to its clients. Along with its commitment to innovation, product quality and customer service, this attention to 'place' has helped RCP to become a well-recognized brand in the UK and Europe.

Q2 C) Identify and explain TWO advantages of that distribution channel to RCP.

ANSWER: The main advantage of direct distribution channel is that company can ensure timely delivery of its products to its clients. It improves the service delivery mechanism which shows commitment of company towards quality (Colley, 2004). Second major benefit of direct distribution is that it helps in eradicating the role of intermediaries which create significant problems for firms aiming at quality delivery to customers along with innovation (Colley, 2004). RCP has cut down its cost of distribution and increased its savings by adopting direct selling approach. Role of intermediaries although provide benefits in certain context but it result in sharing of profits and increase in cost which RCP has been cutting down through its direct distribution channel.

Q3 A) List FOUR elements of a business plan ...