An overview of distribution channels:
Channel Levels: Direct versus Indirect Distribution
Channel Organizations: Conventional, Vertical, Horizontal and Multichannel Marketing Systems
Analyze your target market's needs. Explain what you know about your target market and what they want from a channel of distribution.
Determine which channel members you will use and explain why (Indirect: retailer, wholesaler, dealer, manufacturer's rep, etc. Direct: catalog, telephone, sales force, etc.)
Discuss how many channel members you will use and explain why (intensive distribution, exclusive distribution or selective distribution)
Recommend a channel organization and explain why (conventional, vertical, horizontal or multichannel marketing system)
Your report MUST include a reference list. All research should be cited in the body of the paper. In-text citations and corresponding references should be included in your paper.
Distribution Channel: Organic Food
Organizations use distribution channels to bring their products to the market and to the final consumers. A distribution channel is a method or a setup of interdependent organizations which helps marketer to deliver the products to its final consumers. It is part of marketing mix. It can be direct or indirect. With expanded use of internet, producer or companies are able to sell their products directly to the consumers. On the other hand in indirect distribution company uses two or more level of channels to reach to its customers. They can use wholesaler, retailer, agents and brokers etc. who help organizations to move their products to the market. There are various kinds of channel organizations. Following are the details ...
1. Vertical Marketing System: In this structure producer, wholesalers, and retailers act as a unified system and one channel member owns the other.
2. Horizontal marketing system: In this arrangement two or more companies join together to explore more market opportunities.
3. Conventional Marketing System: In this structure there is one or more independent produce, wholesaler and retailer.
4. Multichannel Marketing system: This is also called hybrid marketing channel. In this arrangement a company selects two or more channels to reach two more customer segment base (The Importance of Distribution).
Solution is a detailed descritpion of distribution channels of Orgnic food and Tea.