3.0 PLACE Gerdeman(2012) acknowledges place strategy as a fundamentals in marketing mix of a product or service. Place strategy highlights how and where a company should place and market its products and consumer purchases. This component of the 4Ps is sometimes referred to as the distribution strategy. 3.1Channel of Distribution Tanner and Raymond(2010) refer channel of distribution as ‘the chain of intermediaries a product passes through from producer to final consumer’.Rufus & Coco will use both direct and indirect channels of for the distribution of KYON . 3.1.1 Direct Distribution Stimpson & Farquharson(2010,p.330) describe direct distribution as the ‘distribution of products with no intermediaries or ‘zero-intermediary’ where product …show more content…
For this distribution ,a selective distribution will be used. Tanner and Raymond(2010) define selective distribution as ‘ distribution that involves selling products at select outlets in specific locations.’ Rufus & Coco (2016) enlists Woolworths, Coles, IGA and several local stores as its retailers and wholesalers.In addition to this stores, KYON being an electric product would also be available in electric sellers such as JB HiFi , Harvey Norman and also through online …show more content…
Distribution centres will be used in Western Australia and Queensland with vast area .Rufus & Coco can send their products to these centres from the respective state warehouses and such distribution centre can move KYON to customers there. 3.2.2 Transportation Rufus & Coco will use a combination of road and rail also known as an intermodal freight transport for the transportation of KYON. Tanner and Raymond(2010) define intermodal freight transportation as ‘the transportation of goods and services through multiple modes of transport’. For movement within few miles or from warehouses to distribution centres road will be uses whereas for inter state transportation and transportation to more than hundreds of miles , a rail transport would be used. 3.2.3 Technology Being an electric product, internet and technology will play a huge part for both KYON’s and Rufus & Coco’s success. Along with the use of RFID to track movements, KYON themselves have GPS trackers which will help in their stock counting and securing. Customers can also order or make complains through the Rufus & Coco
=Channel distribution is the path that a product takes from the producer to the consumer and physical distribution is the actual movement of products that path.
Distribution channels are organized in several ways: conventional, vertical, horizontal and multichannel (Kern R. 2013). Some of these organizational methods are more structured than others. When a distribution channel deals with more than one independent producer, such as wholesalers and retailers, the channel is known as a conventional distribution channel. (Kern R. 2013) These channels are not normally known to be strong and typically don’t give the customer the quality of product that they deserve. In a vertical marketing system, the retailers, wholesalers and producers, join forces to create a unified front, promoting an individual product (Kern R. 2013). Vertical distribution channels are stronger than the conventional distribution channels because all of the companies involved carry some of the load of power. (Kern R. 2013) In a horizontal distribution channel, companies join up and combine all of their finances and resources, in order to take on more than one company or product (Kern R. 2013). A multichannel distribution channel is where a large corporation uses two or more marketing channels to better target their desired customer segments (Kern R.
As mentioned in an earlier assignment, there are three main types of distribution channels. The first is the channel that goes from the producer, then to the wholesaler, then to the retailer or sells to the consumer. The second channel starts with the producer who sells straight to the retailer, who then sells to the consumer. The third channel goes directly from the producer to the consumer. Channels one and two are classed as indirect marketing channels, whereas channel three is a direct marketing channel as it goes straight from producer to consumer.
Place in marketing mix refers to where the product is purchased from and how it’s distributed. For example, most consumer of confectionery will buy products form retail stores. Businesses need to adapt their marketing mix depending on
vs. exclusive – Giving a limited number of dealers the exclusive right to distribute the
32. A channel of distribution is part of a broader network of relationships called a supply chain.
Kudler will have a distribution plan in place with details on how customers will purchase their products. This will be systematically determined, as it is a major concern for decision-makers, on certain aspects such as, which products are available to Kudler’s consumers in what quantity are they available, for what amount, at what location, and at what time. This strategy will be implemented to make sure that Kudler’s is meeting any anticipated demand.
Another component of an effective marketing plan is a distribution channel analysis. The path a product or service takes to reach the end consumer is referred to as a distribution channel, which can include wholesalers, retailers, distributors and the internet (Distribution Channel, 2013). A distribution channel analysis aids in the creation of a distribution strategy which will convey the company’s plan regarding the distribution of its products, determining whether to use a push or a pull strategy, and how that strategy fits the product, the target market, and overall marketing
The company sells its products through two separate channels of distribution. Each is treated as a
Finding a nearby wholesaler is as much less demanding in light of the fact that there are bunches of such merchants in any given nation. The main issue is to locate the right merchant. So an assessment must be made before doing the determination of wholesaler.
Distribution strategies exist in three forms: exclusive distribution, selective distribution, and intensive distribution. Kotler and Keller (2009) define each of the distribution strategies as: exclusive distribution limits the number of intermediaries used; selective distribution depends on a limited number of intermediaries; and intensive distribution works with as many outlets as feasible. The distribution strategy of the airlines industry was not a part of its early history, but is now integral to the success of airline organizations.
They do not have their own distribution system because they put the responsibility trust in specialised merchants which have good
The company sells its products through two separate channels of distribution. Each is treated as a
Two systems of distribution will be adopted. The systems of distribution include direct distribution and indirect distribution system. Indirect distribution system will be characterized by the employment of third parties in the distribution of the products. Therefore, in indirect distribution channels, the business will utilize third parties, often referred to as an intermediary, to offer a link between the manufacturer and consumers. On the other hand, in direct distribution, only two parties will be involved — the manufacturer and the consumer. In the latter system, direct distribution channel will be organized in such a way that the manufacturer will deliver the products (plantain chips) to the market directly without assistance of another independent party such as a distribution company or the intermediary. The decision on whether to employ a direct or indirect distribution channel will depend on the accessibility and distance from the processing zones.