The Distribution Strategy of the Product in the UK Market and Types of Distribution Channels Utilized

Essay by CezarMEUniversity, Master'sB, May 2010

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The distribution strategy of the product in the UK market and types of distribution channels utilized.

Distribution is defined as: "involves company logistics and marketing activities concerned with making and distributing the finished product to customers" (Kotler et al 2007, p106). Distribution simply refers to how you will sell your products to your customers. Depending on what product you are selling will directly influence how you distribute it. Distribution can sometimes be direct, or indirect.

Channel can contain two intermediary levels - a wholesaler and a retailer.

A wholesaler simply buys and stores large amounts of different products from different manufacturers and then breaks into the bulk deliveries to supply retailers with smaller packs. For small retailers with limited order quantities, the use of wholesalers makes economic sense. ( Borden,1999)

Retailers are often large chain shops (Tesco, Asda and etc.). They buy products from both wholesalers and manufacturers and sell straight to the consumers.

Supermarkets and other high street shops make good examples.

The distribution channel is the route a product goes on from being produced to being bought by a customer. There are three different channels in which distribution is made.

▪ A Zero level channel is when the manufacturer delivers their product or service straight to the consumer. The Zero level channels is usually used by services providers, like hair salons or dentists.

▪ A One level channel is when there is a middle-men between the manufacturer and the consumer. This is often is the retailer. Supermarkets and electrical retailers are good examples of this.

▪ A Two level channel is where there are two intermediaries between manufacturer and the consumer. Products sold to a wholesaler, then to a retailer, then finally to the consumer. In our case is Victoria Foods

The distribution strategy for a company's product...