A smartphone brand decides to switch from selling through multiple third-party retailers to establishing exclusive agreements with selected franchise stores for distribution. This strategy allows the brand to better control its marketing and distribution efforts.
What is the primary advantage of adopting a Vertical Marketing System (VMS) in this situation?
1
Increased competition among franchise stores.
2
Greater control over pricing, marketing, and customer experience.
3
Wider market reach through multiple independent retailers.
4
Reduced need for promotional activities.
5
Lower manufacturing costs due to streamlined distribution.