A. Place? Place is referred to when an organization gets the right product to the right place in the right quantity, at the right time. Place is about marketing channels and distribution, and is just as important is business to business market and business to consumer market (Richardson & Gosnay, 2010). Companies are trying to achieve the best the best results to sell their products. About one fifth of the cost of a product goes on getting it to the customer. Place is concerned with various methods of transporting and storing goods, and then making them available for the customer. The choice of distribution method will depend on a variety of circumstances. It will be more convenient for some manufacturers sell to wholesalers who then sell to …show more content…
Direct distribution approach is a direct channel of distribution describes a situation in which the producer sells a product directly to a consumer without the help of intermediaries also known as a zero level channel (Richardson & Gosnay, 2010). Direct distribution is a model used by organizations to move products from production to the buyer without the use of wholesalers or retailers. By eliminating the number of parties involved in the distribution process, a company can capitalize with significant savings. An organization using direct distribution will sell and distribute the shampoo using their own warehouse and employees. By using zero level channel there are no other businesses involved in getting the company’s product to the consumer. Using a zero channel distribution enables the company to bypass the retailers and become closer to the customers and building relationships with the customer. By selling directly to a customer it allows a company to have better control over who the product is going to be sold to, allowing the company to keep their respected name and reputation. If issues arise, they are easily dealt with as the customer deals directly with the company and eliminate any middle men or outside …show more content…
An indirect distribution approach is a chain of intermediaries through which a product moves in order to be made available for purchase by a consumer. An indirect channel of distribution typically involves a product passing through additional steps as it moves from the manufacturing business from distributors to wholesalers and then retail stores (Business Dictionary, 2016). The use of intermediaries and indirect distribution allows a company to focus on the product like a computer, and entrusts retailers to get the product out to customers already using channels developed saving the company time and money. Indirect distribution enables retailers to utilize their existing skills, knowledge and resources to best fit the company, getting the computers to the market, while sharing the risk of the product life cycle (Richardson & Gosnay, 2010). Indirect distribution allows the computer company to use the existing network of stores that are already established in the marketplaces, and using another company’s resources cutting down overall costs of the company. When company’s use intermediaries, which should be considered partners, as soon as they are paid for the order, the wholesaler or retailer takes the title of the product and
...ck and mortar stores and online stores. All these products flow through the same supply chain before they gets customers. However, JB Hi-Fi’s distribution is not thoroughly horizontally integrated. For example, customers could not order a product online and pick it up in a brick and mortar store. Even though JB Hi-Fi did not try to vertically integrate its distribution channel since it is only a retailer, it still tried to offer its customers with best services and efficiency by strengthening its cooperation with its suppliers. For example, customers could check the status of their order through the website of JB Hi-Fi which has integrated information from delivery companies. Customers could also order products that are not in stock since JB Hi-Fi could quickly place an order to its suppliers and have it quickly delivered after it reaches the warehouse of JB Hi-Fi.
Place Strategy: Based on channel’s performance and feedback, we are going to allocate sales force to increase sales revenue. At the same time, we are going to use benchmarking to compare performance and sales force allocation by channel. We want to encourage our channels through an outstanding support, and salesforce is a key to building strong relations with partners, taking into consideration we expect to launch two more
Place: They opened discount factory outlet stores in rural areas and retail stores in urban shopping center. By selling different kind of product in different places help them to meet the different need of the customers. On the other hand, they also sell their product online, where customer can purchase their product at anywhere and anytime. All this make them be able to maximize their gain.
Per Kalogeropoulos (2016), the company is better able to ensure product availability while managing their costs because of their latest logistics initiative. They have recently created a network of deployment centers that reduces the time between when the product leaves a supplier to when it hits the shelf at the Home Depot store which drives profits higher. Parnell (2014), relays that companies who use low-cost strategy seek distribution channels that minimize cost. Home Depot’s new logistics initiative provides the company with economies of scale and a market advantage because it adds to their low-cost
In addition to the change in behavior of consumer, many companies or retailers change the sales channel combinations. The greatest impact of the Web-bases electronic revolution has occurred in companies adopting the click-and-mortar approach. Click- and-mortar is one the strategy used by the companies or retailers that they continue to conduct their business in the physical locations and have added the electronic commerce component to their business activities. According to one study, 37% of United States retailers are selling through a combination of the internet, in stores and catalogs. This represents a growing demand for the business-to-customer package delivery service.
Place (channels of distribution), refers to the point of sale (POS). The method of which a product is assessable to the consumer is a crucial part in the distribution of goods. Retailers pay top dollar for prime real-estate, one of the most popular saying in business is “location, location, location”. Location is key in the retail market and Victoria’s Secret understands that very well, they offer a number of outlets for consumers to reach their products; they have a number of physical store locations both inside and outside of the mall and centrally located to consumers, including overseas and in a number of countries throughout the world, offer online shopping for the millennial and convenience shopping as well as via catalogue (mail order). There is great utilization in all outlets for distribution of the product line; Victoria’s Secret ensures high engagement of its consumers in all outlets by offering special sales and promotions significant to the specific outlet. By doing this they appeal to each market
The Frito-Lay product distribution location strategy is to sell in grocery stores, convenience stores and gas stations. Frito-Lay’s distribution strategy is from manufacturer to retailer and from retailer to customer, thus the retailers offer the company a location to sell their products and allows for intensive distribution ("P7distributioncasestudy - Fritolay"). Frito-Lay products are sold in the snacks area. Frito-Lay aims local customers in the countries in which they distribute their packed
* place. This means how the service is delivered. The growth in e-commerce means it is delivered over the net. This is a new channel of distribution
The company is using intensive retail distribution strategy in order to make the product easily available for customers. The company would be adopting mass distribution strategy in which the product is available in a broad range of locations consisting of grocery stores, convenience stores, vending machines, hotels and a lot of other locations. With such a large number of places vending this product the distribution cost is extremely higher and must be counterbalance with very high volume of sales. Moreover, the manufacturer is involved in multilevel marketing in order to attract and retain the
...urselfers. The distribution strategy identifies the major channels through which the product will delivered and pushed through to the consumers.
Distribution channels or marketing channels can best be understood as a pathway through which product (goods and services) are made available for the consumers to use with ease
The goal of this distribution strategy is to mark up our prices minimally as we have to make some profit. However, due to the low cost of production and relatively low cost of expenses, our distribution strategy relies on moving large quantities of inventory consistently. The more volume we move, the more profit we will make (Refer to Appendix
All choices made by Seven-Eleven are structured to lower its transportation and receiving costs. For example, its area-dominance strategy of opening at least 50 to 60 stores in an area helps with marketing but also lowers the cost of replenishment. All manufacturing facilities are centralized to get the maximum benefit of capacity aggregation and also lower the inbound transportation cost from the manufacturer to the distribution center (DC). Seven-Eleven also requires all suppliers to deliver to the DC where products are sorted by temperature. This reduces the outbound transportation cost because of aggregation of deliveries across multiple suppliers. It also lowers the receiving cost. The information infrastructure is set up to allow store managers to place orders based on analysis of consumption data. The information infrastructure also facilitates the sorting of an order at the DC and receiving of the order at the store. The key point to emphasize here is that most decisions by Seven-Eleven are structured to aggregate transportation and receiving to make both cheaper.
Finally comes delivering. It may be compared to place in the 4Ps approach. However, it is different because, while place requires just having a place where the customer can buy a product, delivering also involves making sure the customer will be able to get the most of the product.”
The term “direct marketing” excludes the "middle man" from promotion, as a company's message is provided directly to a potential customer. (Investopedia, 2010) Direct marketing is an advertising campaign that aims to gain an action (such as an order, a visit to a store or Web site, or a request for further information) from a group of consumers in response specific communication from a marketer. The communication may take many forms such as mail, telemarketing, direct e-mail marketing, and point-of-sale (POS) interactions. (searchcrm.techtarget.com, 2014).