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Distribution Channels
I email file. I writer: Betty comlete paper
Distribution, location and timing
A three tiered distribution structure will be adopted by EndovileTire Solutions. From the factory, the products will be supplied to the regional distribution centers which will then transfer the goods to carrying and forwarding agents who will act as godowns for distribution of the products to delers. Finally, the goods will get to divisional distribution centers which will then distribute to the final retailers. This structure is adopted because it allows for timely delivery of products to retailers as well as provides a safe and efficient way of transporting goods. This will ensure that no major stock outs experienced.
In terms of dealers, EndovileTire Solutions will focus on independent tire dealers who are the most dominant in the tire distribution channels. Independent tire dealers account for over 60% of the wholesale sales made in the tire industry and thus will be the main target. These will ensure that the company's distribution network reaches areas where it does not have its own shops. They will receive goods from the division distribution centers at turnover and bulk discounts to encourage them to sell the company's products over those of competitors. Mass merchandisers sourced through vehicle manufacturers and service stations are also a major distribution...
These will essentially stock many brands of tires for their particular market segment. EndovileTire Solutions will also focus on setting up fully owned shops and franchises to help set up the EndovileTire brand and promoting the company's products and services. Auto dealerships which have also shown huge growth over the years will also be an integral distribution channel. Though majority of these dealerships have had their growth affected largely by the recession, they have since recovered and are showing steady growth.
Consumers will be able to purchase products during normal working hours and an online shopping portal will also be availed for those who would like to order online. This distribution channel is chosen since it will ensure that consumers are able to get EndovileTire's products and services and convenient locations near them while keeping distribution costs as low as possible. Company owned stores will be the major points at which customers can get after sales services although partnerships with other distributors will be sought to increase coverage of after sales services.
The company will also have a loyalty scheme for its premium dealers. These will receive additional discounts as well as be involved in promotions and deciding market strategies for their particular market segments. They will also help in setting targets and developing strategies for…
References
Dent, J. (2011). Distribution Channels: Understanding and Managing Channels to Market. London: Kogan Page.
Rolnicki, K. (1998). Managing channels of distribution. Saranac Lake, NY: AMACOM, American Management Association.
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