Distribution Policy re3 PDF

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Summary

Companies can distribute their products through various types of intermediaries:
• Own delegations: A part of the channel (wholesale or retail) is replaced by the manufacturer own installations; they are typically used to:
- Do not rely on an external network.
- Have better ...

Description

DISTRIBUTION POLICY

1. Distribution Policy. 2. Distribution Strategy for manufacturers (Offline, Online,Multichannel vs Omnichannel).

TYPES OF INTERMEDIARIES Companies can distribute their products through various types of intermediaries: • Own delegations: A part of the channel (wholesale or retail) is replaced by the manufacturer own installations; they are typically used to: - Do not rely on an external network. - Have better facilities to regulate the flow of demand and control intermediate stocks. - To be more prevalent in a market area.

• Wholesalers: A part of the channel (wholesale or retail) is replaced by the manufacturer own installations, hierarchical and legally dependent on him. The intermediary concept is adapted. MAKRO - Wholesale with truck: they by merchandise to the manufacturer with a truck and then sell it to retailers visiting them every certain period of time. -Merchants: They have generally retailers that have the property of the good. They have it physically available and take the risk. -Commission Agents: The opposite of the office wholesalers. They work on commission and they do not own the goods but they have them phisically and assume the risk of such goods by charging a percentage of the goods sold. -Commercial Agents: They are brokers who have neither property nor have it nor have it phisically or take risks. Types of wholesalers according to their relations: -Independent wholesaler: they act individually.

-Purchasing Groups: wholesalers have ownership links with other channel members. They are associations of distribution: • Negotiation groups: they are empowered to stydy, select the range, set the rates and scales of discounts and bonuses but have no executive functions so that the purchase is carried out by the vendor associated with the central. • Negotiation with execution Groups: the central negotiates and issue orders and usually pass them directly to providers • Service providers: they perform ther tasks other different from supplying, such as providing information market research, import management, training and staff development, etc Types of wholesalers according to the activity development: • Full service wholesailer: they provide many services such as storage, product conservation, transportation, delivery, financing, etc. • Partial service wholesailer: they provide only specific services. Types of wholesalers according to the activity development: • Wholesalers Specialized in Certain Product Lines: they mostly operate with one or two product lines, with a greater depth or range. • Industrial Wholesaler: Wholesale manufacturers that usually sell to manufacturers rather than to retailers. OTOVO Types of Intermediaries according to the selling system: Store Sale: • Traditional: A vendor serves the product for sale. • Self-Service: The consumer does not need the vendor.

• Retailers: intermediaries who sell goods or services to retail or retail to endwholesalers (intermediaries who sell goods or services at wholesale to manufacturers, other wholesalers and retailers or incorporation into into the production into the production process of a product to end consumers). ALCAMPO 3. Retailer formats (physical and digital). • Sale by mail: A vendor serves the product for sale. LAREDOUTTE • Selling or multilevel Marketing or network Marketing (MLM): Direct sales through independent distributors associated to a supplier company. They earn a percentage of their own sales and a percentage of the sales of people they introduced in the business. MARY KAY… • Vending Machines (Vending): dispatching and receiving throuhg vending machines. Used to relieve customers and earn anoymity, time zone, comfort and speed. COCACOLA • Doorstep Selling: Applicable to household products, cosmetics or difficult products. ENCYCLOPEDIA • Street Trade: Car selling or street markets for food or textile.

• Telemarketing: Promotion and sales tool for launching new products. • Television Sales (Telesales): Advertise a product on TV as a phone number appears. LA TIENDA EN CASA • Computer Sales: Access to a virtual catalog where orders are placed on the internet AMAZON

TYPES OF RETAIL ACCORDING TO THE TYPE OF ESTABLISHMENT: ISOLATED COMMERCE: COUNTER SALES •Shopping Gallery: small group small shops, especially food. MERCADO DE CHAMARTÍN • Classic Store: The buyer is assisted by a clerk. Shallow lines offered. It competes through adjusted services and prices. • Specialized shop: They sell using the traditional way, with little selection but in depth. I.E. GOURMET PRODUCTS • Self-Service Sales: the small buyer selects the product and pay in check-out located outside the establishment • Convenience Store (drugstore): These small supermarkets are open 24 hours a day and most of the day. The user pays a higher price for the extended opening hours. • Superstores: are supermarkets with more than 2.500 square metres and more than 30 outlet check-outs, variety if products, high turnover, high product turnover, reduced service. All with low prices. • Department Stores: the small buyer selects the product and pay in check-out located outside the establishment. There are small supermarkets (less than 120 square metres) and large or supermarkets (120-400 square metres). EL CORTE INGLÉS • Popular Stores: are smaller shops specialized in less-quality products lines at low prices • Markets (food markets): Fresh and perishable food is commercialized in one building. MERCADO DE SAN ANTÓN, MADRID • Supercenters: Combine full supermarket shop and traditional self-service at a low cost with high volume. SUPERCOR • Discount Shops: Offer a few products with high turnover providing very low prices and a reduced service. ALDI, LIDL… • Non-Specialized Area (Category Killers): Specialized Hypermarkets between 2.500 to 22.500 square metres. MEDIAMARKT FNAC, IKEA, DECATHLON, WALMART,… • Concept Stores: Located in the outskirts of the city. They are very specialized in a particular brand or product of a premium brand • Factory Outlets: Luxury shopping cities framed in thematic or subject areas. FACTORY SAN SEBASTIÁN DE LOS REYES

• Duty Free Shops: Tax free trade or with no fees applied. Located in the boarding areas if international airports or seaports. SEE BUY FLY… 3. Retailer formats (digital). 1. Managing an Online Store through a Content Manager 2. Responsive Web Design 3. Search Engine Optimization (SEO): set of actions aimed at improving the positioning of a website in the results list of Google, Bing, or other internet search engines 4. Search Engine Marketing (SEM):. Its main mission is to attract new customers and generate quality traffic to the website. In Spain, the most used search engine is Google Adwords 5. Web Analytics 6. Email Marketing : Apps like SquareSpace and Google analytics and for web analytics and Mailchimp for Email MKT 7. Legislation: 1) Organic Data Protection Law (LOPD) 2) Services, Information Society and Ecommerce (LSSICE) 3) Spanish Data Protection Agency (AGPD)

4. Distribution logistics. 5. Technology on Retail / Distribution. 6. Design and selection of channels. 7. The location of the Point Of Sale (POS). 8. Store Brands: strategies, evolution, and manufacturers. 9. Merchandising and Shopwindows: types and techniques. 10. Retail Financial Strategy....