Investigate a place or distribution channel for a product or service with which

Question

Investigate a place or distribution channel for a product or service with which you are familiar. Explain what product/ service you are investigating and what distribution channel/s is/ are applicable. What is appealing about the product and distribution channel (place) and what sets it aside from those used by competitors selling similar products? What benefits are presented to consumers with regard to the place or distribution channel and how are they encouraged to engage with the product or service provider? How significant are these to the marketing process? (400–500 words)

Explanation / Answer

Distribution plays an important role in the Supply chain management. It includes inbound and outbound logistic to distribute goods in timely manner to wholesaler or retailer. There are 4 types of distribution channel - Direct distribution, Retail distribution, Wholesale distribution and Distribution by Agent or Brokers. The product chosen is the FMCG product which has a high demand in the market

Fast moving consumer goods like soap, shampoo, detergent are produce by some of the manufacturer. The firm has a very large distribution center. The product is moved to warehouse and stocked accordingly. Once the retailer demand for the product, it takes less time to deliver to retail outlet. The only drawback to these processes is that it requires more coordination according to its complexity. Sometime it is even possible to move the good from single low-level site to distribution center. In case of faulty goods or damaged goods, the customer returns the goods to manufacturer. Therefore this goods again moves to warehouse and finally to manufacturer. This is also known as reverse logistics.

The objective of Retail distribution channel is to deliver right product, at the right place, right time to the customer. It also involves delivering damage free product at a competitive cost. Following are the factors that determine the efficiency of the company's distribution center

1. Available at right time - The distribution channel helps to deliver the right product at the right time. This means the retailer do not go stock out every time as they forecast the demand effectively.

2. Right price - Retail distribution channel makes the product cheaper as the product directly distributes from manufacturer to retailer which removes the intermediary cost.  

3. No Damage - The Company use the effective way of reducing damage while distributing the goods from one region to other.

4. Service Cost - The Company ensures that the item is distributed quickly before the stock out of the any item. This helps the company to increase the customer satisfaction by making it available of items at the right time.

These are very significant to marketing process as it increase the advertisement budget due to low distribution cost. It is also significant to all the marketing related activity which includes promotion, sales driving activities, seminar or exhibition, etc.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.