Grainger Case Study 14.2
Is Grainger in a position to be a channel captain? Explain.
I think Grainger is in a great position to be a channel captain because they are utilizing every avenue afforded to them, from mailing post cards to using the internet. It is this type of communication that has enabled them to be a marketing channel captain as described in the figure 14-3 of the text on page 392 Pride/Ferrell 2008). Grainger is a large producer of maintenance, repair, and operating equipment, and are using four of the five marketing channels and profiting big. Grainger is using the first channel of producer as they are the ones producing the products; in this case the machine parts, then they use various websites, such as Grainger.com and FindMRO.com both of which became top producers of sales. When Grainger decided to build distribution centers in three different states in different regions of the country, the sales grew even bigger. They seemed to skip the wholesaler and go straight to the retailers, which saves one of the middle men. Grainger goes on to sell their products on military bases and places that use or are nearby businesses that use their products which makes it easier for the customers to receive their product. Grainger could be considered a channel captain simply due to the way they handle their customers in terms of how they get the word out in terms of their products. Grainger uses everything from catalogs to websites to advertise thousands of products, yet are capable of addressing each customer’s needs from suggesting items that would need to replaced down the road in addition to the parts purchased for replacement now. Grainger seems to cover all bases when it comes to sales, distribution, and marketing.
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