Assume that you have been contracted as an external marketing consultant to Jamie Bailey, the owner and president of C. R. Plastics, and that he has asked you to prepare a brief report (1,000-word limit) responding to the following two issues. Note that Mr. Bailey is looking for practical potential solutions and you need to take a professional rather than an academic approach in responding to these questions.

Please answer the following two questions in the sequence presented.

Part 1

On the assumption that alternate additional channels of distribution need to be considered from what currently exist (which focus on the use of distributors and smaller independent retailers), construct an expanded distribution strategy to bring the C. R. Plastics line of outdoor recycled outdoor plastic furniture to the national market using big box stores or outlets such as Costco, Rona, or Home Depot (but avoiding Wal-Mart).

In your presentation, discuss also how you would propose to implement such a strategy without seriously affecting the loyalty of the existing channel members. Hint: Consider product differentiation strategies for the existing and expanded channels recognising that pricing and sales volumes to these separate market segments may be distinctly different.

Part 2

Given the existing technology and manufacturing capability that C. R. Plastics possesses in working with recycled plastics, suggest at least three separate and distinctly different potential product lines or category extensions that the company could consider with a view to offsetting the seasonal demand for its existing lines of outdoor furniture. For each of your suggested extensions, also indicate which of the existing and expanded channels (as you have recommended in Part 1) would be most suited to distribute these new products or if an entirely new distribution channel would be necessitated for each.

You should clearly state any reasonable assumptions that you care to make in providing your recommendations and should address the proposition from the perspective of C. R. Plastic's current strengths as evidenced in the case material.