Supply Chain Strategy of Colgate Palmolive Toothpaste
1. To know the supply chain strategies used by the Colgate Palmolive ltd.
2. To know the distribution channels of the Colgate Palmolive toothpaste.
3. To study the supply process of Colgate Palmolive from supply of raw
materials till supply to retailers.
The distribution strategy is concerned with the product or service placement. Broadly speaking, there are two categories of issues and decisions which need to be handled while designing the distribution strategy as part of marketing mix.
(a) management of marketing channels and
(b) the management of physical supplies. In this unit we will discuss these two areas of distribution decisions.
IMPORTANCE OF CHANNELS OF DISTRIBUTION
Channel decisions refer to the managerial decisions on the selection of best routes or paths for moving goods from the producer to the consumer. Channels of distribution are concerned not only with the physical movement of goods but also with their promotion, selling and marketing control.
The term channels of distribution is used to refer to the various intermediaries who help in moving the product from the producer to the consumer, There area variety of middlemen and merchants who act as intermediaries between the producers and consumers.
Channels of distribution are the most powerful element among marketing mix elements. Many products which were intrinsically sound died in their infancy because they never found the right road to the market, On the other hand, by developing a sound distribution network and launching aggressive advertisement campaigns, a company can carve out a niche for itself.
Channels of distribution can be grouped under two major headings:
i) Direct Selling by manufacturer and
ii) (ii) Indirect Selling through middlemen.