Rama, the Marketing Manager of a reputed Watch Company, faces the problem of selecting the channel of distribution for the company's new expensive watch.
Which channel should she select ? Give two reasons in support of your answer and also discuss the factors which determine the choice of channel.

Explanation

As a Marketing Manager, Rama should select one level channel of distribution for the company's new expensive watch. In this arrangement, one intermediary is used in between the producer and the customer. The manufactuer sells to the retailer who in turns sells to the ultimate consumer. Reason for selection one level channel of distribution are :
`(i)` One level channel is usually suitable for speciality goods like expensive watches or home appliances, where the producer sells its products through retailers.
`(ii)` This type of distribution network covers the wide area of market.