The company architecture comprises several collection and sub

The company architecture comprises several collection and sub?brands, each of which is a leader in its segment. Market has been split into Low end (Geneva Brand) and Luxury brand (Patek Phillips Brand) which have average retailing price of $10 and $90,000 respectively.
The Geneva Brand Watch
The company should follow the conventional channel as indirect distribution to sell a product in wholesale to agents or retailers so that they can getting distribute products into as many markets as possible because of its “Low cost convenience”. So, retailer store it, display it, and employ the sales force to put it into the hands of customers and will share the profits with distributors. This marketing strategy offers consumers to encounter the product virtually everywhere they go in supermarket, individual watch store. The intensive channels provide Geneve watch with wide range coverage, cover different price points and target different segments of customers. It helps Geneve to generate sales volumes.
The Patek Phillips Brand watch
Patek Phillips should create a vertical marketing system with a direct channel to control the centralized management over all aspects of the business, anticipates problems and makes necessary changes to increase efficiency. A good communication and coordination is crucial to the success to sell an exclusive product and benefit by building a strong relationship with there potential customers. Use an exclusive distribution channel to uses limited outlets, so high priced luxury items that require a great deal of selling effort. Higher levels of services are required for these products that are sold through exclusive distribution. So, potential customers need to be assured of the benefits of such a purchase and that enjoyed a high level of brand loyalty. So the person selling it and the design level of attention would be better achieved through exclusive distribution, limited number of outlets. An important component of company is not just watch, after service is much important to give a satisfaction to customer on high cost product. In addition, if company have very few outlets it impacts brand perception, in terms of luxury watch as the brand, its heritage, its products, and its association with quality and luxury. They want to enhance customer awareness of this luxury, this is carried out through elements of the marketing mix including channel strategy.