To sign up for our daily email newsletter, CLICK HERE
What exactly is the product distribution? Distribution, in simple terms, is the method by which you make your goods or services easily accessible to consumers. In a nutshell, companies like Brisbane 3PL provider One Warehousing, are not immediately utilised. Rather, the third-party warehouses, middlemen and store activities all happen at the point of sale.
Nowadays, distribution has become an integral part of any company’s product distribution strategies. If you want to reach out to a broader audience, you need to go for specialized warehousing. Companies that make goods that need to be distributed effectively use intensive distribution. This involves keeping a large number of products in store in order to meet consumer demands.
In most cases, product distribution strategies apply to eCommerce orders as well. eCommerce orders can significantly be increased by marketing through podcasts, and many companies even use likes24 to help in this regard. Ecommerce orders include orders from online shoppers who order certain items from a manufacturer or retailer. The manufacturer delivers the purchased items straight to the door of the buyer. Retailers meanwhile maintain stock of the goods in their own stocks. They make a profit on every item they sell.
Three-Tier Product Distribution
The three-tier system in product distribution has been in existence for quite some time now. This system helps retailers keep track of who buys from them. It helps manufacturers determine which distributors to partner with to extend their reach. And it helps consumers know what kind of retailers they can expect to see on their streets. All this is because of the distribution channel.
Types Of Distribution Channel
There are different types of distribution channels. These include intense distribution, web distribution channels, direct mail, and traditional retailing. Each distribution channel, however, has its own advantages and disadvantages. And it is for these reasons that one should employ an effective product distribution strategy to get the most out of his business.
- Intense distribution channels involve frequent travel by truck, plane, or ship to retailers. They also entail very long distances – sometimes more than a hundred miles between two retailers. This means that retailers must constantly advertise to ensure prompt and efficient service.
- Web distribution channels entail using websites and emails to send the product directly to the consumer. This saves a lot of money on advertising expenses, but Internet access is a prerequisite so that the retailer can offer fast and easy order processing.
- Direct mail is another efficient distribution channel for the alcohol industry. However, it does not have the same effects as intense distribution and retailing. Order forms, for example, are printed in-store locations and mailed off to individual homes. So there is no way of knowing how effective this marketing strategy is unless it is tried out. But then again, direct mail cannot be completely ignored either because unlike retailing, it is a proven method to influence individuals who make up a relatively large percentage of the market.
Most distributors have their own product distribution strategy. The best distributors strive to work with retailers to increase sales and market share. A good distributor will work closely with retailers to offer promotions that encourage people to buy more of a product while on vacation or at work. These kinds of promotions are usually known as on-site promotions and may include free hotel stays, special sales, and gift certificates. Distributors will also try to attract new customers by offering coupons for future purchases. By following these methods and others like them, an effective alcohol brand distributor can increase his market share and increase his profits.
On top of developing product distribution strategies that work, the best alcohol brands will also work with licensed retailers. The most popular product distribution strategy in the alcoholic beverage industry is to work with small independent operators in the field of retail sales. Many smaller operators have been able to survive and succeed because they were able to work with licensed retailers.
There are two types of distribution in the retail industry: direct and indirect. Direct distribution involves manufacturers directly delivering their products to the retailers. Indirect distribution occurs when wholesalers or manufacturers sell directly to the retailers without the involvement of a middleman. Examples of indirect wholesalers and manufacturers who distribute directly to retailers include liquor distributors. When alcohol is sold by wholesalers they are considered direct wholesalers because they work directly with the manufacturers and do not need to form a partnership with them.
Alcohol distributors will work in close collaboration with retailers and liquor stores to promote the sale of their products. The distributors will provide advertising in a variety of forms and locations. These distribution strategies can make a significant difference in the success of an alcohol brand because they can increase the awareness of the product in the marketplace. Distribution can occur both domestically and internationally and in most cases will occur in grocery stores. In addition to distributing via direct sales, companies may choose to partner with other companies that distribute their product through a wholesaler or manufacturer.