What is the distribution policy?
A company’s distribution policy is a key element of a company’s Marketing Mix strategy. The choice of this policy must be consistent with the other elements that make up the company’s strategy. Distribution corresponds to all the means used to make the product accessible to end customers. It is a strategic element which will allow a company to generate more turnover which will include the storage and transport of goods.
What are the different distribution channels?
- The direct channel: 0 intermediaries, the manufacturer sells its products to customers without an intermediary. It is a distribution policy widely used by artisans who sell their products themselves.
- The short channel: 1 intermediary, the manufacturer sells its products to a retailer who resells the products to customers.
- The long channel: at least 2 intermediaries, the manufacturer sells its products to a wholesaler who sells it to a retailer who concludes the sale with end customers. This is a policy that very often concerns franchise networks.
What are the different distribution strategies?
- Intensive distribution: this strategy consists of distributing its products on a large scale in numerous points of sale, this is common for consumer products.
- Selective distribution: corresponds to selecting the points of sale in which the company wishes to market its products, particularly for cosmetics/perfumery products.
- Exclusive distribution: this strategy allows you to choose a point of sale to market your products; it is particularly used in the luxury sector where only the brand’s points of sale are authorized to sell their products.
What are the different distribution channels?
- Home selling or meeting selling favors a direct channel to sell goods outside of shops.
- E-commerce favors sales on the Internet, whether via a brand or distributor e-commerce site or even via a marketplace.
- Retail trade corresponds to stores which purchase merchandise on their own to resell it to the end customer.
- Wholesale trade consists of purchasing goods in very large quantities and reselling them in large quantities to intermediaries (retailers, distributors, etc.).
- Large-scale distribution refers to businesses that sell a multitude of different references to individuals.