Strategy for Distribution Channel Management
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In this module assignment, you will be looking at Place. In particular, you will study the relative power of suppliers and distributors. The remaining "P"s, Promotion and Price, will be examined in the remaining modules.
Place is also called "distribution" in the marketing literature. The various topics included in the study of distribution are:
Physical distribution, or how products get from manufacturer through the "distribution channel" to the final consumer.
Logistics or how products are transported (land, sea, air, etc.)-- or even how component parts are obtained for manufacturing.
The retail physical facility including its location, its exterior and interior appearance, and related issues including allocation of shelf space.
Of the Four P's of marketing, product is often thought to be the linchpin?the element that holds all the other elements together. Place or Distribution is thought to be the second most important element. That is, even if a company has a superior product, if the supplier can not obtain shelf space in an appropriate distributor (for example, retailer), sales of the product will be limited to what can be sold directly to potential buyers. And if the reputation of the seller (for example, the supplier) of the product is unknown and the reputation of the product is also unknown, then potential consumers will be as unlikely to buy the product as the distributors are unlikely to give it shelf space.
Should LeapFrog and other toy manufacturers refuse to sell some of their best selling products to Wal-mart?
The case question asks you to consider a situation that is the opposite of trying to get Walmart to sell their products. The case question directs you to consider that If a company such as Wal-mart, which is sometimes compared to an 800 lb. gorilla, is 'knocking off' competitors and without competitors makes unreasonable demands from its suppliers, then, should manufacturers give up sales of their products by refusing to sell to Wal-mart?
I am required to compose a 3 page response to this question. It should have and Introduction, Body, and conclusion.
Please provide ALL additional references.
Thanks in Advance for your time and assistance.
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Solution Summary
This discusses the formulation and analysis of strategy for distribution channel management by taking the example of Wal-Mart
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Should LeapFrog and other toy manufacturers refuse to sell some of their best selling products to Wal-mart?
The case question asks you to consider a situation that is the opposite of trying to get Walmart to sell their products. The case question directs you to consider that If a company such as Wal-mart, which is sometimes compared to an 800 lb. gorilla, is 'knocking off' competitors and without competitors makes unreasonable demands from its suppliers, then, should manufacturers give up sales of their products by refusing to sell to Wal-mart?
I am required to compose a 3 page response to this question. It should have and Introduction, Body, and conclusion.
Introduction
In this we will discuss the placement strategy with relation to Leapfrog and WalMart. This consists of all of the activities utilized to move a product and its title from production to consumption.
Placement strategy
Channel Length
A description of the size and number of levels in a channel.
1. Zero level
It involve direct marketing consists of a manufacturer selling directly to the final customer. Perishable, non-standardized products, High unit value products will require more direct marketing because of dangers associated with delays.
2. One level channel
It involves one selling intermediary such as retailer.
3. Two level or more channels
It involves more than one selling intermediary such as wholesaler, retailer. Generally consumer goods industry prefers this type of channel.
Appropriate intensity levels as they relate to traditional consumer product classifications:
? Convenience
Here intensive distribution strategy can be used that is the intensity is high as these goods are purchased frequently for example soaps, newspapers.
? Shopping
Here selective distribution strategy can be used that is the intensity is moderate as the consumers take time to make the decision. For e.g. Furniture, ...
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