Endovile Tire Solutions' distribution channels and structure

Distribution Channels

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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 channels. 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 meeting these targets. They will also be given other incentives such as bonuses for each time they beat targets Dent, 2011()

EndovileTire Solutions will also set up regional offices to help divide the country into sales territories. These will be headed by regional managers who will be in charge of developing dealerships and increasing brand recognition and awareness. For key areas, area managers will also be appointed. They will be based at the company's regional office and area offices will be opened as the company's sales grow in specific areas.

Racing teams

Motorsport teams will be sponsored through providing them with tires free. However, partnerships will be sought to set up company owned shops at racing grounds or near them to improve sales at these events.

Individuals looking for sport tires

Individuals will be targeted through independent tire dealers, auto dealers, mass merchandisers, and company owned shops.

SUV owners

These will be targeted in a similar fashion to individuals

Heavy commercial truck companies

These companies will be targeted through company owned stores which will be opened close to the company's location and places where trucks frequently stop over.

Monitoring of the distribution strategy

At the time of implementation, this strategy has undergone rigorous testing of its viability. However, logistical issues and challenges are bound to arise Rolnicki, 1998.

These will require constant monitoring of the distribution channels to ensure that EndovileTire Solutions is able to make cost savings by having as efficient and reliable a distribution strategy as possible. These cost savings can then be passed on to the customers and dealers to help promote product sales. Factors such as geographic distribution and frequency of purchase will be the major factors in ensuring that the strategy adopted and used is effective as all times.