...Section 5: Distribution Plan and Promotions Strategy In determining my distribution strategy, I have decided that I would leverage by using stores in different regions, however, the stores would have to accomplish the same strategy but for the demographics within it. Although selling online is a good option, I highly believe that my product would not leverage well. I’d hire a sales team that is exceptional at selling directly to suppliers as well as door-to-door. Having face-to-face contact with an “expert” of the product or service is great, because not everyone has access to the web. I recommend low cost provider strategy. This strategy helps strive to achieve lover overall costs and then using that low cost advantage to attract a wide range of buyers with a lower priced product offering than that of my competitor(s). I’d also seek focused strategy based on low costs, because this will allow me to concentrate on a narrow buyer segment and beating my rivals by having lower costs, this being in position to win buyer favor by means of a lower priced product offering. Lastly, best cost provider strategy. I am reaching to strive to achieve a competitive advantage over my competition by developing the capability to incorporate upscale product attributes at a lower cost than that of my rivals. It allows my company the ability to give customers more value for their money by underpricing rivals whose products have similar attributes. Best cost provider strategy is a hybrid strategy that...
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...Amazon.com’s European Distribution Strategy Name: Shijing Zhao Date: February 23, 2013 Introduction and Problem Definition To best support its growth, Amazon Europe was considering building a European distribution network (EDN) where the location of inventory would be strategically determined. Among all issues to be considered, the most important one was to evaluate the three alternatives to design the EDN and choose one of them. External Analysis (See Appendix 1 for full listing) For opportunities, the first thing worth mentioning is the fast growth of international markets. Worth only $381.1 million in 2000, the Amazon International’s revenue reached at $1,168.9 million in 2002. That means the international market environment was fairly optimistic for Amazon and it should expand into other countries such as China and Korea. The second important opportunity is the large potential of European online markets and book markets. For example, Italy holds the third largest book sales of € 4,130 million in 1999 and the fourth largest online spending of €701 million in 2001. Amazon could consider Italy or other Europe countries with large potentials as its future target markets in Europe. For threats, the biggest one is the low EDI penetration among book, music and video distributors in Europe. EDI enables Amazon to get the information about the item ordered from the US supplier quickly. It would be difficult for Amazon to know details about the item ordered without EDI,...
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...implementation of a distribution strategy without the coordination of other components of the marketing mix tends to produce a strategy without harmony. A disjointed marketing strategy will not reach the success levels that were expected. Organizations have come to realise the impact of distribution management as a source of competitive advantage with companies like Delta, Lobels and Bakers Inn employing distribution managers and personnel. This is because it has become more difficult to find a unique source of competitive advantage in an era where it is easy to copy strategies and products. Marketing managers are now looking to coordinate the promotion strategy with the distribution strategy, specifically push or pull strategy in relation to distribution strategies that include, intensive, selective or exclusive. Now the combination of these strategies is most important in an environment where the retailer and other relevant intermediaries are faced with so many product options to stock on their floor space. It then becomes apparent that the marketing manger that is able to gain the best and most floor space using one strategy, and persuade end customers to seek out and purchase the organization’s products in another strategy, becomes successful in gaining market share and meeting their objectives. This paper will define distribution management and its components. It will look at the impact of the Bullwhip Effect or the Forrester Effect, the push and pull strategies and the convergence...
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...Distribution Strategy Name Institution Distribution Strategy A distribution channel is the path through which goods and services are transported from the producer to consumer and how the payment gets to the producer or seller. Distribution channels can also be known as marketing distribution channels or marketing channels. In marketing, goods and services can be distributed using two main types of channels that include direct and indirect distribution channels. According to Richardson and Gosnay (2010) direct distribution is achieved when goods or services leaves the producer and goes directly to the customer without the involvement of a middleman. For instance, a barber and car wash utilizes direct distribution because the customer receives the service directly from the producer. Indirect distribution, on the other hand, involves middlemen or intermediaries within the distribution channel. In the wood sector, for instance, the intermediaries would be the lumber manufacturer, the retailer and furniture maker. The larger the number of intermediaries within the distribution channel, the higher the price is prone to be for the ultimate customer (Richardson & Gosnay 2010). This is because of the value adding that crop up at each stride within the makeup. Moreover, there are other important types of distribution which include intensive, selective and exclusive distribution. The marketer can chose either of these depending on factors such as the manufacture...
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... Distribution Strategies of Company S for Motivating the Dealers Introduction It is very important for the Company S to make effective strategies to sell its motor scooter in the market because there are already so many companies, which are selling its scooters. I would suggest the strategies, which will not only motivate the customers but also stimulate the dealers. “Motivation is everything. You can do the work of two people, but you cannot be two people. Instead, you have to inspire the next guy down the line and get him to inspire his people.” (Lee Iacocca) Company S can stimulate the dealerships by increasing their profit possibilities. It will boost the profit opportunities for the company as well as for the dealers. When the dealers will sell the products, the company also makes profits according to it. The disadvantage is that it requires money for promoting and advertising of motor scooter in the market. The company sets sales target for the dealers to endorse them to amplify their sales. The advantage of doing so is that it does not need any extra cost. The disadvantage is that it does not work if the company does not have considerable influence in the market. This strategy helps the company to motivate dealers by Evolving Attractive Inducement Scheme. These incentives will convince distributors...
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...Distribution Strategy (Group D _ Session 7 _ Assignment) San Fabian (SF) - MacDowell Philippines (MP) - Paulo Remita Incorporated (PR) Problem Statement After 19 years of an established “exclusive-distribution” agreement with San Fabian; MacDowell Philippines decided to terminate the deal. MacDowell Philippines decided to take over the Wholesale role of San Fabian (SF) and would participate directly in large Commercials as well as Government Projects. Accordingly MP (MacDowell Philippines) products line will be made available to Construction Supply dealers across Philippines. MP claimed to be forced to take that step to help increasing Sales since they experienced an operation capacity around 50%. Situation Analysis As Mr. Paul Cheng _ President of SF was looking at that situation imposed by MP; he went back in time when the relationship started between both corporations in 1967 and continued since then and saw how that engagement was considered to be a “ Natural Fit “ or in other words a “ Win to Win “ situation. There were things SF wanted in MP and other things MP was missing that could be briefly explained as follows: a) SF MP * SF was missing the roofing product line * MP was the only manufacturers who accepted the “exclusive-distribution” agreement b) MP SF * SF was a growing co. with a solid, good reputation * SF didn’t carry any competing product line * SF could offer a national coverage * SF would be able to pay...
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...Distribution Strategies: Think of a distribution channel as one slice of the overall marketing pie. It is how a company gets its products or services to the consumers. Few producers sell their goods directly to the final users. Most use intermediaries to bring their product to market. Most producers do not sell their goods directly to the final users; between them stands a set of intermediaries performing a variety of functions. These intermediaries constitute a marketing channel (also called distribution channel) How can channel members add value: -In making products and services available to consumers; -Gathering key information about potential and current customers, and competitors; - Promotion Developing and spreading communications about offers; Physical distribution Transporting and storing goods; Risk taking Assuming some commercial risks by operating the channel (e.g. holding stock) ; The primary purpose of any channel of distribution is to bridge the gap between the producer of a product and the user of it. Distribution channels include wholesalers, e-commerce websites, catalog sales, consultants, a direct sales force who sell over the phone, in person or both, dealers, home shopping networks and retailers. Each channel member depends on the others. * For example: Ford Dealer depends on Ford to design cars that meet consumer needs. Ford depends on their dealers to attract consumers, convince them to buy Ford cars. The best promotion or marketing...
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...Distribution: Unlike software companies who sell their products to potential customers by using traditional distribution channels such as retail stores or creating their own online shop, we chose the advantages of the Apple App Store to sell our product directly to all iPad users. This means, if someone owns an iPad one can download the program and install it for a little amount of money. The App Store is by far the largest mobile application store and it reaches millions of iPad or iPhone customers. It is accessible through Wi-Fi and cellular networks worldwide, so one can discover and download new applications wherever they go. Users can search applications by genre, featured, and top ten. Once downloaded, the customer will be notified whenever an update is available - directly on their iPad or iPhone. What’s probably the most attractive feature of the App Store is that Apple handles everything: payment processing, international business licenses, distribution, and delivery of applications to iPad or iPhone devices over WiFi and cellular data networks. In return, Apple receives 30 percent of our revenues from total sales. But as a small company like ours, it is totally worth it. Here is the breakdown[1] of how the revenues are split up among Apple and our company (for an App priced at $1.49): Developer : $1.04 (70%) Credit Card : $0.22 (15%) Apple : $0.21 (14%) Processing : $0.02 (1%) The only obstacle for us in order to get “Digital Sheet Music” up for sale is that...
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...Table of Contents Introduction 4 Mobile phone industry in India 4 Nokia in India 5 Nokia distribution structure in India 6 Role of Channel Partners 8 Margins at each level 10 Distributors Coverage Plan 11 Infrastructure required by distributor 11 Support provided by the company to the distributor 13 Credit/ Payment terms 14 Major Problems Faced by the distributors 14 Major Points of conflict 15 Major Problems/ Issues identified 16 Recommendations 17 Refrences 18 People Contacted 19 Terms and Abbreviations used Nokia - Nokia India Pvt. Ltd. RDSS – Redistribution Stockist Supplier HCLI – HCL Infosystems Dealers – Mobile phone retailers rajesh Introduction Integral part of 4P’s f marketing mix is ‘place’. Having a great product is useless till its made available to potential customers at right places and at right time. Considering a country like India with not only a large but also economically, climatically and socially diverse landscape to be covered amplifies the problem manifolds. A distribution network for products rises above importance levels to become bare necessity for the existence of any company. The success of the channel design depends upon the reach and efficiency of the network any organization develops and maintains and ease with which any potential customer is able to find the product. Efficiency of the distribution cost and type of channel partners form and integral part of this. Mobile phone industry in India The mobile...
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...Distribution Strategy for Production & Sales In order to effectively market and sell a new product, a distribution strategy must be defined. Distribution for production and sales can occur in many different ways and it is important that many avenues be explored. This is because it is always beneficial to produce through multiple channels in order to maximize your efficiency. One way that the product can be distributed for sale is through a sales team. There could be a dedicated sales force that visits different businesses and attempts to sell the product directly to them. Another way that the product could be distributed is through a wholesaler or a distributor. This would be an efficient way to quickly move product on the market and allows for a higher volume to be produced and moved than other methods of distribution. A third possible way to distribute the product would be through the company’s own e-commerce site. The consumer can come directly to their site and be able to order the product straight from the manufacturer. This way could lead to less expensive products as there is no middle man in this particular process, lessening the cost to the consumer in the process. A very obvious choice in the distribution and sales of the product is Amazon. This should be one of the first places that a new product should be marketed as Amazon has one of the most popular e-commerce sites and is constantly expanding. This provides an excellent opportunity for the distribution strategy...
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...Product strategies Colgate has been known to promote their products on a much more enhanced level compared to its contenders and this has been shown in their dedication and hard work since the early 19th century when they first advertised their soap and candle products on the New York newspaper. Similarly, the launch of the Optic White series by Colgate was no different. Optic White is widely regarded as one of Colgate’s greatest successes of the last ten years and the brand has extended into mouthwash, toothpaste and other oral care segments. The product has also received acclaim from media and analysts. The objective for the launch of this series back in 2011 was to position Optic White as a beauty product and the latest beauty must-have, away from therapeutic angles. The stylish sensation Fazura was selected as the brand ambassador for the product and just within one month saw it becoming Colgate’s leading selling product in Malaysia. Launching a new product is a critical moment as during that time period no one knows what to expect since it is being presented to the customer for the first time. To ease this situation what the current chairman Ian Cook did, was to establish strong relationships with the dental professionals which allowed them to produce the new product in a familiar and friendly environment. Brand loyalty is another reason why Optic White series was such a hit globally as since the past 75 years in Latin America and 50 years in Asia, Colgate has been the...
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...Pricing Strategy and Channel Distribution Marketing Management – MKT 500 February 15, 2012 Pricing Strategy and Channel Distribution Determine and discuss a pricing strategy (Skimming and Penetration). One of the four major elements of the marketing mix is price. Pricing is very important strategic element. The pricing strategies impinge on featuring products, channel decisions, and promotions. This strategy helps marketers set prices. (Pride, Hughes, & Kapoor, 2011) There are many ways to price a product. Two commonly known pricing strategies are skimming and penetration. Lavishness Hair Studio is likely to use one or both of them over a calculated period of time. Price skimming involves charging the highest price possible for a short time where a new, innovative, or much-improved product is launched onto a market. The objective with skimming is to “skim the cream” off customers who are willing to pay more to have the product sooner. Prices are usually lowered once demand falls. Penetration pricing is the opposite; it involves the setting of lower, rather than higher price for a new product. The seller wants to discourage competitors from entering the market by building a large market share quickly. The plan is to raise prices as soon as the introductory offer is over (Pride, Hughes, & Kapoor, 2011). Lavishness Hair Studio will use price penetration during the initial opening phase of the business. Penetration pricing is the strategy of entering...
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...Pricing strategy and Channel Distribution Anthony McKenzie MKT 500 Marketing Management Prof. Deidre Guion November 13, 2011 Determine and discuss a pricing strategy (Penetration or Skimming). The marketing penetration strategy its intention is to raise market shares of any product or services that is still prevailing in the consumer market. This particular pricing strategy was adopted by companies and business in order to increase their sales revenue merely because there wasn’t really a need to make any need to make any needless changes that could affect their products or services The other side of market penetration points out that there are other existing businesses or company that selling their products and services to the consumer. However, they can foresee their existing sales figures can change by using the marketing penetration strategy (Market Penetration Strategy, n.d.). Determine and discuss pricing tactics (Product line pricing) Value pricing, Differential pricing, or Competing against private brands) to be used for your product. The pricing tactic choosing to help promote the sales of products for the Alpha & Omega Medical Supply Company is Differential Pricing, the particular reason why this particular pricing tactic was selected. A company or business uses this type of pricing of their products and services. There are individuals who are living below or near the poverty level. What the company or business will do is that they will sale...
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...Pricing Strategy and Channel Distribution Stacy Allen MKT 500 -Marketing Management Dr. Adina Scruggs February 12th, 2012 Penetration entails giving most of the value to the customer and keeping a small margin. The objective is to gain as much market share as possible. It is often used as part of an entry strategy for a new product and is particular useful for preventing completive entry. The opposite of penetration pricing is skimming. Skimming gives more of the cost-value cap to you than to the customer. This strategy is appropriate in a variety of situation. For example, if there is a strong price-perceived quality relationship and the value proposition includes a position of the product at the high end of the market, then this objective makes sense. Financial Objectives * Reach profitability by year two. * Reduce store overhead by 5% each year. * Have a double digit growth rate for the first few years. The product-line approach involves offering both a high-priced and a low-priced brand. For example, this is a classic strategy that Procter & Gamble use. Just for Women Shoes strategy would be running and work out sneakers at the premium level and everyday work pumps (black, navy, brown) at the low end. Value pricing is related to customer expectations: It gives more value than they expect for the price paid. Just for Women Shoes Differential pricing or competing against private brands is to reduce the price gap to the point where consumers...
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...pricing strategy (Penetration or Skimming). Pricing is very important strategic element. The pricing strategies impinge on featuring products, channel decisions, and promotions. The researcher realizes there is no real determine pricing, following a life cycle for developing the pricing of Destini’s Closet product. First, develop market strategy – which the researcher evaluated and conducted a marketing analysis to identify the market segments, target market, SWOT analysis, and the market positioning. Second, marketing mix decisions – the researcher defined the product (Clothing), contacted manufactures for distribution, and decided promotional tactics. Now the researcher is focusing on the cost productions, price of substitute products, and prices offered by the competition. The researcher notices that competitors change their prices often. Case scenario, competitors are always looking for a competitive match, this can be an advantage and a disadvantage for the business. Competitors may strategize a different packaging of their product; this can be good for Destini’s Closet by reducing their price. It’s all up to the customer wants and needs. The demographic crowd the researcher is focusing on would rather price reduction then a new look to a product. What if production price are rising? If production price is rising it’s up to the Destini’s Closet to determine the price increase without turning the customers to their competitors Two commonly known pricing strategies are...
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