![]() ![]() In contrast, a brand targeting a mass market might seek distribution in every channel and every nook and cranny of the economy.īlock a competitor. For instance, a luxury brand might choose to be distributed exclusively in upscale, high-end retail stores. The types of stores a product is placed in can shape and reinforce the consumer’s image of that brand. A variation of this strategy is to offer the new product to each retail chain under an exclusive brand name/private label.īurnish a brand image. While this strategy limits the upside potential of a new product because it limits distribution possibilities, it might still be a wise strategy for a small company (limited distribution is better than no distribution). If a small company with limited resources developed an appealing new product, but can’t get its new product on the shelf in retail stores, then it could approach a major retailer and offer to distribute its new product exclusively in that retailer’s stores. ![]() For example, if a retailer is operating a very expensive retail-store distribution system, the retailer might benefit from shifting some of its sales to an online distribution system to save money.Īchieve distribution. ![]() If a new system of distribution or improved logistics can significantly reduce costs and improve profit margins, then that distribution strategy might be worthy of pursuit. Speed-of-delivery combined with a direct-to-consumer business model and possibly smartphone app convenience may forge a new distribution strategy. Distributing a product or service more quickly is sometimes enough of an advantage to justify a new distribution strategy. Or, the coffee manufacturer might open its own coffee shops, or distribute coffee in new geographic areas. For example, a coffee manufacturer selling its coffees only in supermarkets might decide to buy its own trucks and start an office coffee business to deliver coffee directly to workplaces. Opening up a new channel of distribution or expanding distribution into new geographic areas can give new groups or new types of consumers access to a company’s products or services.
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