DISTRIBUTION

STRATEGIES
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CONTENTS

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DEFINITION
Distribution Strategy is a strategy or a plan to make a product or a service
available to the target customers through its supply chain.
Distribution strategy designs the entire approach for availability of the
offering starting taking inputs from what the company communicated in
marketing campaigns to what target audience is to be served. A company
can decide whether it wants to serve the product and service through their
own channels or partner with other companies to use their distribution
channels to do the same.
Some companies can use their own exclusive stores for their own
products or can use available retail chains to sell their products. It can be
combination of both. Many companies these days also use online
exclusive channels to sell their products or services.
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Imagine this: If a manufacturer sells directly to the consumers, it will have

to deal with each customer individually, increasing its contact with
customers. The customers will also have to go to different manufacturer
in order to buy goods that they need. That means that they will have to go
to a shampoo manufacturer, soap manufacturer, cofee manufacturer on
separate trips.
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Pull marketing is a
A push promotional strategy that focuses on
strategy is a increasing the number of
marketing strategy consumers who want to
that sees companies buy a particular product. It
take its products to often involves convincing
its consumers. The a consumer to actively
goal of this strategy seek a product in order to
is to get the product get retailers to stock it.
directly in front of the Brands that use pull
customers, in the marketing will reach out to
form of trade shows consumers through a
and point of sale direct marketing
displays. campaign.
STAGES OF PRODUCT DISTRIBUTION
STAGES OF PRODUCT DISTRIBUTION
 CHANNEL LEVELS
DIRECT MARKETING CHANNEL= has no intermediary levels -
the company sells directly to consumers.

MANUFACTURER--------------CONSUMER

INDIRECT MARKETING CHANNEL= contains one or more

intermidiaries.Manufacturers may bring their products, directly to retailers or may
go through distributors.

MANUFACTURER----------DISTRIBUTOR--------RETAILER------CONSUMER

MANUFACTURER-------RETAILER-------CONSUMER
 Factors affecting
Distribution Strategy
1. Location of business 2. Location of target market
This is one of the most Now distribution is done from
important factor in deciding manufacturer/distributor/retailer to the
the distribution strategy. If end Customer. If end customer is located
Location is business is at a or interacting with similar products at a
place where distribution can particular location then the distribution
be readily done like near port strategy needs to include it. If the target
or railway lines, then we can market is professionals then the product
rely on that mode for should be available near offices or
distribution and save costs as inside offices through partnerships so
well. that the product is available where the
demand is
 Factors affecting
Distribution Strategy
4. Warehousing
3. Reaching the target market Properly storing the inventory at any locations
The end goal of a product is to is an important aspect while deciding the
reach the target audience when distribution strategy. Warehousing and
required. Distribution inventory management come into picture.
strategy has to ensure that the
product reaches the potential 5. Transportation and logistics
customers when they look Transportation is one of the most important aspect of distribution strategy.
for the same. During summers Without proper transportation either the product will not reach the target
e.g. a beverage company would market in time or may be
it would not be in right quality. e.g. if a company deals in frozen foods, then
make sure that it is
it needs to
present in all retail stores in make sure that the transportation and logistics are taking care of that
sufficient quantity through cold
storage and temperature maintenance.
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