Strategy for distribution channel management

Management

Distribution channel management

Toys are amazing products, responsible for better learning and grooming of young ones. Advantages of a utility if exceeds the economical constraints will surely be purchased and bargained over. However it's important to depict toy as a utility for an infant or young ones. The market of toys can never be build unless the consumers are turned aware about its utilities, accessibility, applications and benefits. it's not important to turn a toy item brighter for sake of consumer's acknowledgement, rather the manufacturer and the retailer should emphasize over the effectiveness, durability of the toy products.

The question then raises that, shall the market be approached directly by the big market giants, who in collaboration with the manufacturers publicize and market the product. By restricting your network within big giants the product might turn out to be commercialized utility however it accessibility is hampered significantly. The monopoly that big market giants undergo adversely affects the prospects of manufacturers. Therefore the role of market tycoons must be significantly subdued. When it comes to the accessibility of the product, it's the local retailers who can contribute towards the positive trend of market sales by ensuring the people at local level are aware, familiar about the toy product.

Under current scenario where the toy manufacturers are under threat of low sales, not because of their worst product quality, but because of their heavy dependence upon the market giant i.e. Wal-Mart and Toys-R-Us. Both the companies tried to influence and dominate their respective shares by offering lucrative deals over the toy products and compromising over the profit rates, thereby affecting the production as a whole. The logical review of the situation can be generalized as; the marketing campaign is always launched by manufacturers and if the market dealers join-in and penetrate, the share of product within the giants gets distorted, and equilibrium is lost.

Under this troublesome situation that is never hypothesized by the manufacturers the toy brand loses credibility and market share. The best fit solution lies in forging normalized relation with the overall market than with only the front runners. The manufactures should therefore broaden its geographical and logistical network. The most importantly it should immediately forge a deal with local retailers regarding products distribution, sales and at the same time should develop an understanding regarding profit percentage. Of course the manufacturer can offer subsidized rate of profit to the local retailers. For such retailers, capturing new manufacturer is itself a huge jump over the heap.

Under such scenario where the manufacturer is immune to many concerns. However if the brand or product is well advertised, produced in the right proportions of quantity and quality, shipment in time, rate of return closer to estimated value can bring major break through for the manufacturer. The imminent matter of concerns to be sorted out by the manufacturer includes,

Selection of a retailer or distributor having good and strong public relations.

Cater for logistics, shipment issues when the retailer network expands / Time dilation.

Mere incentives offered by the retailers as compare to Super Market Giants.

The public and market repute of the retailer has to be thoroughly reviewed. The standards of the products aren't solely derived from its production standard; rather the mode of supply for the product also determines and influences its standards. Consumers are never good enough to conclude their remarks on the toy products by looking into the brand only; it's the manufacturers and consumer interface i.e. retailers in this case, who adversely shape and mould the thoughts and attitude of the consumers toward the product/brand.

The effective solution can be if the manufacturer voluntarily support and help the retailer to flourish and build the infrastructure required for optimized sales of the products. This possibility can only be appropriate provided that the manufacturers broaden the scope of its participation in the launch and distribution of the products. Although the method can contribute massively towards bulk profit and sale, as the manufacturers get the lead to standardizing and negotiating the profit percentage. The manufactures active participation and modification of its role contributes extensively towards high profit percentage. The manufacturers should then be termed as "manufact-tributor," this redefining of manufacturers' role, can contribute a great deal towards market expansion and accessibility. The "Category Killers" have evolved "Category Builders," a joint and well defined venture of manufacturers and distributors.