¶ … Marketing
Distribution strategy is a plan designed by the top management of an organization or a company, which specifies the ways in which the firm intends to move its products to middle traders retailers, and even consumers. After the product has been launched, it should reach the end consumer in the market or any other place. Between the manufacturer and the consumer are other intermediaries who are the brokers, wholesalers, and the retailers. The intermediaries are responsible in the distribution of the product to the end consumer. Sometimes the manufacturer decides to sell the product direct to the consumer. It is when the manufacturer or a business owner is dealing with an impulse purchase or low priced products. Distribution channel strategy allows wholesalers and retailers to reach customers in various geographical areas that the sales team cannot reach. It enables them to cover a large area reaching more customers and increasing sales. Wholesalers a retailer can use three distribution strategies when transferring the products to the consumers (Lamb & McDaniel, 2011). Policies that they can apply could be inclusive, exclusive, and selective distribution strategies. Before wholesalers and retailers select one of these distribution strategies to use the distribution of products, they should consider some factors. Factors that should be considered include reaching the consumer, cost, contribution, support, and customer service (Rosenbloom, 2011).
Wholesalers and retailers will select distribution strategies to use depending on their products. Intensive distribution strategy is also known as mass distribution strategy. It is because the company or organization using this approach incorporates as many channels as possible to reach many people in the field. In this strategy, wholesalers and retailers are struggling to cover a wide such that they can increase sales leading to increased profits. Examples of products, which fit intensive distribution strategy, are beer, cigarettes, fruit juices, chocolates, and other soft drinks. In most cases, intensive distribution is much acceptable when customers have a wide range of brands to choose. It is where the customer will choose another brand in absents of the favorite brand. Distribution is a key success factor in all businesses (Marks & O'Connor 2014). Each company or organization is fighting to make the products easily available and reachable to consumers. Wholesalers and retailers dealing with soft drinks use this distribution strategy to make sure the products reach all consumers in different geographical areas. Due to intensive distribution strategy, soft drinks are available in both the small kiosks and five-star hotels (Perreault, Cannon & McCarthy, 2010).
Selective distribution is another strategy that can be used by wholesalers and retailers to distribute their products. It is whereby they decide to use a limited number of distribution channels outlets when supplying the products. The strategy is advantageous because wholesalers and retailers can choose the best performing and appropriate distribution outlets, unlike intensive distribution. Wholesalers and retailers will focus on the selected outlets and offer better training on they can distribute the products to reach the customers quickly (Armstrong & Cunningham 2012). It means the consumers prefer certain brand or price of the product and they can search the outlets supplying the brand. Selective distribution strategy enables wholesalers and retailers to manage the prices of products such that the consumer is not overburden. Wholesalers and retailers will control the outlets supplying the product because the more the outlets handling the product, the higher the prices on reaching the consumer. In addition, wholesalers and retailers will control the costs of distributing the product (Lamb & McDaniel 2011).
Exclusive distribution strategy is using one distributor in a given geographical area. Wholesaler of the retailer will select one outlet that will supply the product to the consumers. The products that can be supplied using this distribution strategy are those having high prestigious image. Examples are automobiles, designer ware, and major domestic appliances. Wholesaler or the retailer will have control over the products since there is no competition between the intermediaries (Perreault, Cannon & McCarthy, 2010). The selected distributor will sell the products as per the instructions from the...
Economic Principles -- Perfectly Competitive Markets Generally, gasoline and related petroleum products intended for automobiles are all products whose sale in the United States represents a close approximation but not necessarily an exact model of a perfectly competitive market. That is because entering the market is not completely barrier-free in that it requires a significant investment of capital. In that regard, the primary barrier to entering the market is the overhead
Market Audit The first point that has to be looked into is the health of the company, Colorado Australia. The company is passing through a bad phase and this is not the time for a product launch as generally no new introduction can make money for a period of time after launch. When the company launching the product is itself in a relatively poor condition of finances, then it is less
The basic explanation for this is that they rely on always offering the lowest prices, which makes them cut back on other costs. However, the future might bring about more pretentious and harder to satisfy customers and strategies will then have to be developed. 3. Internet Retailing The best selling strategy is that of combining multiple channels. This is similar to the financial sector, where the investor is advised to diversify
Thus, despite the high per-capita incomes in Scandinavia, consumers are value-conscious. Unlike Germany, Scandinavians are willing to pay more for wine, and recognize quality differences. Netherlands Like Scandinavia, the Netherlands is open to wine imports. With historical connections to Spain and Portugal, and without alliances with Italy or France, Dutch wine drinkers are friendly to imports and to the Spanish character found in Chilean wines. Like Scandinavians, the Dutch have high
Carrefour Expansion and Entry Plan into the Bangladesh MarketExecutive summaryThe increase in globalization has increased market opportunities for large companies and organizations, making them go international. Carrefour is one of these organizations that have been sought to increase their market share by venturing into the global market. This expansion plan is for the organization�s expansion and entry into the Bangladeshi retail market. PESTLE Analysis of the Bangladesh market shows that
New Market Expansion StrategySection 1Industry and Competition AnalysisThe apparel/clothing market is highly competitive with numerous players vying for market share. Garne operates in the Ukrainian market, but if it were to expand it would be competing with the likes of other international and domestic brands like Zara, H&M, and Uniqlo.While Garne faces stiff competition, it has a few key advantages. First, Garne has a strong online presence and is able
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