Expanding Coverage From Perfumery To Pharmacy:the Biotherm Case

In a world where consumer goods markets are getting increasingly complex and competitive, a smart and well-studied distribution strategy can turn out to be a true source of sustainable competitive advantage. The strategic dimension of distribution channel design is the underlying concept of this essay, which is focused on one of the most critical distribution strategies:the expansion of distribution coverage. In particular, this thesis claims that, in order to increase effectively the number of contacts between the brand and its customers, the expansion must be implemented in distribution channels which, when different from the original one, provide the same kind and level of service outputs to the customers and are consistent with the brand’s value and positioning. The "Biotherm" case represents a clear and strong support for this thesis:the strategic expansion of the distribution coverage could be a solution to "Biotherm"’s problems of low sell-out, provided that it is implemented carefully and choosing a suitable distribution channel other than perfumeries, that, in this case, turned out to be the pharmacy.