Importance Of Logistics In Marketing

It is actually quite the opposite, Wal-Mart’s supply chain is very customer focused, which is what gives them an advantage over their competitors. Wal-Mart focus’s on the customer and employs a pull strategy, where the demand from customers is the basis for production for Wal-Mart suppliers. This gives them a unique production method, in that they do not produce based on traditional methods rather it is based on short-term forecasts of demand generated by their customers. This allows them to not only keep stock costs low, it also allows them to track demand of individual products. This results in lowered costs of advertising and promoting products because they are able to accurately track demand and can adjust their advertising based on what is selling and what is not resulting in more accurate marketing efforts.

This is due to the fact that with a diminishing level of differentiation in the industry, products offered across the different stores are similar hence raising the threat of brand substitution where consumers can easily switch from one retailer to the next with the determinant factor being the price in most of the situations; whereby heightening rivalry. Sainsbury use the competitive pricing strategy where the price deals at their possession are undertaken to avoid loss of customers to the other retail chains. The commitment to remain affordable remains where they play the lead role in setting the product prices with Sainsbury and other retail chains seeming to follow. In order to restore faith in their pricing strategies, such as brand matching guarantees at giving consumers the confidence that their

A good location can have a significant impact in attracting potential customers, thus improving sales. Especially in the case of a supermarket, location is more important than other business sector. Customers never drive long distances to only buy daily necessities. Moreover, favorable location gives efficiency to company’s logistics because unnecessary moving cost can be cut down. So, we can say that it is important factor for the successful operation of the supermarket.

This paper will also discuss the marketing channels and areas the Colgate Company can improve on. Logistics, Production and Shipping Having an effective logistics, production and shipping strategy can give companies an advantage over their competitors. Producing and getting products to customers can be costly. Having an effective strategy can help reduce costs and increase profits. Colgate works closely with suppliers in order to increase quality, cost effectiveness and innovation.

Article Overview: (30%) In this chapter, the authors focus on how technology firms manage complexities of distribution channels and supply chains to successfully deliver products in high-tech market. The authors claim that effective managing distribution helps the firms to reduce redundancies and inefficiencies in their production system. Consequently, the firms can improve their alliances’ relationships (i.e., customers, suppliers, manufacturers and distributors) that increase customer satisfaction and cost advantage. However, if firms have ineffective channel strategies, conflicts between firms and their alliances can be occurred. Because they usually have different goals, they think that they cannot solve the conflicts by common solutions.

Efficient or inefficient management of merchandise inventory by a firm is a major factor between healthy profits and operating at a loss. There are both market-related and budget-related issues that must be dealt with in terms of coming up with an ideal inventory balance: • Is the inventory correct for the market being served? • Does the inventory have the proper turnover? • What is the ideal inventory for a typical retailer or wholesaler in this business? To answer the last question first, the ideal inventory is the inventory that does not lose profitable sales and can still justify the investment in each part of its whole.

Effective inventory management is a key component of Dollar General’s business success and profitability. If the company’s buying decisions do not accurately predict consumer trends, excess inventory will negatively affect financial results. Inventory turnover has improved and the company is aware and focusing on addressing all of these risks in the most productive way possible. The biggest risk that the company is facing from a consumer’s perspective is that their sector is highly competitive. Operating in a basic consumer goods market there is already a strain on margins, and low prices are necessary to stay competitive.

In service logistics and event logistics, the downstream aspect may not be so visible, but it still exists because the event and service are being held for customers. Despite these similarities, the four subdivisions are not the same; their differences lie mainly in their primary purpose. • Business logistics aims to deliver products from its original source to the end consumer. Business logisticians want to do this at the least cost possible without compromising customer satisfaction to generate greater profit margins for the business

To be a successful business and to compete in business market a good manager need to minimize the cost of every activity. The study of the Logistics is very interesting where the models of business can have good solution. (Dr.D.Ghosh, 2015) The progress in transportation and logistic improves the moving load, delivery speed, service quality, operation costs, the usage of facilities. Transportation takes a crucial part in the control of logistic. A strong logistics and transportation needs the best model of distribution of the goods.

By reducing the amount or changing the shape and size of the packaging you are using, you can carrying more product — saving you both time and money. 4. Outcome of the Right Package Optimization When looking for the proper way to package your items, you want to consider both complexity and efficiency. To modest complication, you want to take as many similar packages as possible, but to develop efficiency, you want every one item to have its best package. For companies with a wide-ranging variety of products, this can be difficult to balance.