Emmanuel Appiagyei Unit 29-Understanding Retail D1 Teacher: Jaswinder
The Distributon of goods and Services D1
In this assignment I will select one of my products I chose earlier and will write a
report evaluating the distribution systems used by a retailer in delivering the
product. The product I am going to use is jeans and the business I am going to
use is Armani.
Info on Armani
Giorgio Armani is an Italian fashion house founded by Giorgio Armani in 1975 and
designs, manufactures, distributes and retails haute couture, ready-to-wear, leather
goods, shoes, watches, jewelry, accessories, eyewear, cosmetics and home interiors. The
brand markets these products under several labels, including Giorgio Armani, Armani
Collezioni, Emporio Armani, AJ | Armani Jeans, AX | Armani Exchange, Armani Junior and
Armani/Casa. The brand utilizes the association of the Armani name with high-fashion,
benefiting from its prestige in the fashion industry and has revenue of 1.8 billion.
Responsiveness to customer needs
Advantages
With faster distribution methods such as air and train transports Armani will be able to
respond to customers’ needs much faster and more efciently. An example of this is
when Armani’s retailers or other businesses need stock as soon as possible in seasonal
business cycles like summer or Christmas Armani will be able to respond to customer
needs by using the air transport method to quickly get the jeans to their stores and
customers. Armani will implant tracking devices with the stock they sent to their
customers allow both Armani and customer know where the products currently are and
estimate the delivery time on its arrival.
Disadvantages
The disadvantage of this issue is that customers’ needs constantly change and Armani
might not be able to respond quick enough to combat these changing needs example if
Armani makes new jeans that were supposed to be a an upgrade from the current ones
and didn’t meet customers’ needs the jeans won’t sell meaning they have wasted money
on production and delivery process. Another disadvantage of this is that the economy
can highly afect customers’ needs, an example of this is the recession stage of the
business cycle when businesses tend to make cuts to survive making people unemployed
and making every pound stretch. Resulting to the jeans having to be sold at losses, even
then customers will still get their jeans elsewhere from grey markets or individuals that
sell counterfeits.
To improve upon this issue Armani is currently facing they need to consider making
cheaper versions of jeans that can still generate income in time of recession and also
allowing customers to design their own jeans on its websites.
Cost efectiveness
Advantages
The Distributon of goods and Services D1
In this assignment I will select one of my products I chose earlier and will write a
report evaluating the distribution systems used by a retailer in delivering the
product. The product I am going to use is jeans and the business I am going to
use is Armani.
Info on Armani
Giorgio Armani is an Italian fashion house founded by Giorgio Armani in 1975 and
designs, manufactures, distributes and retails haute couture, ready-to-wear, leather
goods, shoes, watches, jewelry, accessories, eyewear, cosmetics and home interiors. The
brand markets these products under several labels, including Giorgio Armani, Armani
Collezioni, Emporio Armani, AJ | Armani Jeans, AX | Armani Exchange, Armani Junior and
Armani/Casa. The brand utilizes the association of the Armani name with high-fashion,
benefiting from its prestige in the fashion industry and has revenue of 1.8 billion.
Responsiveness to customer needs
Advantages
With faster distribution methods such as air and train transports Armani will be able to
respond to customers’ needs much faster and more efciently. An example of this is
when Armani’s retailers or other businesses need stock as soon as possible in seasonal
business cycles like summer or Christmas Armani will be able to respond to customer
needs by using the air transport method to quickly get the jeans to their stores and
customers. Armani will implant tracking devices with the stock they sent to their
customers allow both Armani and customer know where the products currently are and
estimate the delivery time on its arrival.
Disadvantages
The disadvantage of this issue is that customers’ needs constantly change and Armani
might not be able to respond quick enough to combat these changing needs example if
Armani makes new jeans that were supposed to be a an upgrade from the current ones
and didn’t meet customers’ needs the jeans won’t sell meaning they have wasted money
on production and delivery process. Another disadvantage of this is that the economy
can highly afect customers’ needs, an example of this is the recession stage of the
business cycle when businesses tend to make cuts to survive making people unemployed
and making every pound stretch. Resulting to the jeans having to be sold at losses, even
then customers will still get their jeans elsewhere from grey markets or individuals that
sell counterfeits.
To improve upon this issue Armani is currently facing they need to consider making
cheaper versions of jeans that can still generate income in time of recession and also
allowing customers to design their own jeans on its websites.
Cost efectiveness
Advantages
