Case Name :      Kreative Works: Extending the Boundaries

Authors :           Tuhin Sengupta, Priyavrat Sanyal, Vishal Kakkar

Source :              Ivey Publishing

Case ID :           9B16M210 / W16830

Discipline :        General Management

Case Length :    10 pages

Plagiarism : NO (100% Original work)

In April 2016, the owner of Kreative Works, a small-scale furniture manufacturer in Lucknow, Uttar Pradesh, India, decided to expand his company’s product line in response to increased market competition and a shift in consumers’ buying patterns and preferences. The intent was to extend the company’s market reach from its traditional target of educational institutes and offices to a consumer market by marketing a premium lounge chair and a family of dining chairs. The owner also wanted to expand the market geographically. Kreative Works did not have the capacity to open multiple retail outlets. Given these circumstances, should the company market its new product line in a single retail outlet or through an exclusive dealer or distributor (a centralized channel structure), or by distributing its products through multiple distributors or retailers (a decentralized channel structure)?