Q6- A distributor should stock as many brands as possible for each product category demanded by its clients." Debate this statement.
Distributors fulfil a number of core roles of their customers. They always want to be a one-stop shop. The customer expects to be able to go to the distributor for anything and buy it without needing to wait or to place it on back order. The distributor’s core role is the ability to provide products (with a range of brands) on demand thus saving or minimizing the stocking burden on the part of its consumers (Dent 2011). Category management has become a popular retail practice where pricing, assortment, and stocking decisions are coordinated across products within a particular retail category. An alternative form of category management called vendor- specific category management (VSCM) where each vendor has the responsibility of managing the stocking and assortment decisions for its own shelf space provided by the retailer. The retailer benefits from the vendors who are experts in their particular product category when they make shelf space management recommendations. Various merits and demerits underlie the reason why a distributor should stock as many brands as possible for each product category demanded by its clients (kumar 2009).
There is no doubt distribution causes market share. The unavailability of products in the market makes it impossible for anyone to buy. Customers have more opportunity for buying more available products for the case of convenience goods. An exception in this case would be in a situation where brand level loyalty is highly experienced. When the product is unavailable, the customers refrain from buying until the product is available. Sales are normally lost to the availa...
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...urselfers. The distribution strategy identifies the major channels through which the product will delivered and pushed through to the consumers.
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The industry sells its good through 3 channels and their sales with the market share:
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Wholesalers acts as a lesion between manufacturers of commodities and other industries that are interesting in selling the same products. Along this distribution chain wholesalers usually purchase goods in large quantities and in turn sells them to retailers who ultimately supplies goods and services to consumers. Due to the available space at wholesale locations they are able to store products for distribution to retailers which reduces retailers storage costs. Wholesalers are able to store goods in large quantities which allow retailers to purchase in small quantities. Due to this option retailers are able to only purchase what is needed at that given point (Kotler & Keller, 2012). Additionally, because wholesalers are able to purchase goods