The Distribution Strategy Of The Product In The Uk Market And Types Of Distribution Channels Utilized

1599 words - 6 pages

The distribution strategy of the product in the UK market and types of distribution channels utilized.Distribution is defined as: "involves company logistics and marketing activities concerned with making and distributing the finished product to customers" (Kotler et al 2007, p106). Distribution simply refers to how you will sell your products to your customers. Depending on what product you are selling will directly influence how you distribute it. Distribution can sometimes be direct, or indirect.Channel can contain two intermediary levels - a wholesaler and a retailer.A wholesaler simply buys and stores large amounts of different products from different manufacturers and then breaks into the bulk deliveries to supply retailers with smaller packs. For small retailers with limited order quantities, the use of wholesalers makes economic sense. ( Borden,1999)Retailers are often large chain shops (Tesco, Asda and etc.). They buy products from both wholesalers and manufacturers and sell straight to the consumers. Supermarkets and other high street shops make good examples.The distribution channel is the route a product goes on from being produced to being bought by a customer. There are three different channels in which distribution is made.▪ A Zero level channel is when the manufacturer delivers their product or service straight to the consumer. The Zero level channels is usually used by services providers, like hair salons or dentists.▪ A One level channel is when there is a middle-men between the manufacturer and the consumer. This is often is the retailer. Supermarkets and electrical retailers are good examples of this.▪ A Two level channel is where there are two intermediaries between manufacturer and the consumer. Products sold to a wholesaler, then to a retailer, then finally to the consumer. In our case is Victoria FoodsThe distribution strategy for a company's product can depend on several factors. (Kotler et al 2007, Borden, 1999).One of the factors is the type of product being sold. For example goods like food need to be distributed in as many places as possible as consumers are not willing to travel far for such products. More expensive items and goods like cars and or computers are not distributed to as many places as consumers are willing to travel further for them ( Borden,1999).Another factor is the channel of distribution. If a product is going directly from a producer to a retailer they are likely to want it delivered to them rather than picking it up themselves ( Borden,1999).According to Kotler, Armstrong (2004) and Borden (1999), there are several effects to the distribution strategy decided by a company.▪ Distribution cost. It may be cheaper to sell to intermediaries rather than sell directly to the consumer.▪ Product coverage. A small producer is unlikely to have the resources to reach everyone in their target market - so selling to a retailer can let them do the hard work.▪ Product control....

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