project

South University

August 27, 2019

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Distribution is basically an important element of every business but effective and efficient distribution is the element of successful business. Channels of distribution carry huge significance because it is considered as the backbone of the business. If distribution channels are not effective then products would never reach to the consumers perfectly and on time. To fulfill the market demand, it is essential for us i.e. that we distribute V Fusion Energy Drink among the retailers on time so that they would be able to sell effectively and efficiently (Teilman, 2016). as far as its importance in marketing mix is considered, it has great importance regarding placement of the product which defines that products must be available at right place, right time and in right quantities. This happens when our distribution channels are highly reliable and efficient. As we take example of our V Fusion Energy Drink, it must be distributed and placed at an attractive place so that customers would prefer to purchase the drink at their first. As we discussed its ingredients, it must be placed separately from other non-beverages drinks so customers would attract this drink and its ingredients. For this purpose, if sudden demand becomes high then distributional channels would help to make the product available in right time and according to the market demand so that retailers would be able to serve the customers effectively and efficiently.

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There is number of ways through which distribution channels can add value to the product. effective distribution channels have knowledge about the area of distribution, level of customers demand, etc. in order to distribute successfully. Likewise, V Fusion Energy Drink with same distribution channels strategy and provide its valued customer's intuition. Likewise, distribution channels also provide credit facility to those retailers who have ability to collect regular payments. In this way, distribution channels would be able to provide stock on credit on the demand of the retailers (Bhasin, 2018). The prime benefit of products available on credit that retailers can use the stock reserves of V Fusion Energy Drink of demand becomes high suddenly. As discussed earlier that we have our own distribution channels and in order to provide value to our product, we provide warehouse space to our retailers so that they would not require personal warehouse space to stock V Fusion Energy Drinks. If we provide personal warehouse space to the retailers, in this case we can distribute in bulk as well. To provide more value to products, manufacturers establish a good relationship with the distributors in order to gain information about competitors’ activities as well because it helps in making improvement in product effectively and efficiently.

As far as V Fusion Energy Drink is considered, being a distributor, we have trustable employees who look after our distribution channels in such a way that confidential information would not leak in any case.

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There are a number of distribution Strategies adopted by different companies in order to keep business operations effective and efficient. Among all distribution strategies, some are given below:

Intensive Distribution

In intensive distribution strategy, companies try to cover as much market they can. Due to having a large market in any state, they need to distribute products and cover the market efficiently. The prime example of intensive distribution is Pepsi and Coca-Cola, they are big competitors of each other and have to cover huge market through effective intensive distribution strategy.

Selective Distribution

In selective distribution strategy, companies have large market around the world but they target specific areas. For instance, Zara or Gucci are world-renowned brands but we find only 2-3 outlets in 7 to 8 cities of a state or maybe 1 in a small country. This is called selective distribution strategy through which they target selected areas but earn huge revenue.

Direct or Indirect Distribution Strategy

Indirect distribution strategy, companies distribute directly to the end consumer or having fewer channels between it. Likewise, indirect distribution strategy through which companies have big distribution chain. In this case, distribution is commonly slow or sometimes chain may damage as well. The prime example of direct and indirect distribution strategy is McDonald’s, Jewellers, etc. do direct distribution directly to end consumer. Likewise, wholesale dealers are normally doing indirect distribution.

As far as V Fusion Energy Drink is considered, we do intensive distribution because of the high demand of the product we try to cover as much market we can in order to make V Fusion Energy Drink available everywhere to ensure customer satisfaction.

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The strategy upon which we are working to distribute V Fusion Energy Drink is effective and efficient because we have initiated this product 7-8 months ago and received a tremendous response from consumer from various regions also got demand from other regions as well (Ross, 2010). In this case, to fulfill the demand, cover as much market and to satisfy the consumer, we implemented an intensive distribution strategy to make business operation successfully from all aspects.

Apart from implementation of effective distribution strategies, channel conflict also exists. Conflict between channel partners arises when they start competing each other. It usually happens when one prevents others to achieve their desired goals and objectives. Conflict may exist in every distributional channel but it damages the process on its grounds which affect the sales, revenue and most importantly market demand would not fulfill and customers switch to substitutes that’s less conflict or no conflicts can lead distribution channels in a long run. V Fusion Energy Drink has its own channel but we take care of conflict management in order to keep the distribution process smooth, effective and efficient.

References Bhasin, H. (2018). What are various strategies of Distribution channels? Supply Chain Management. Ross, S. (2010). Direct Vs. indirect Distribution. Harvard Business Review. Teilman. (2016). Distribution Channels. Marketing Management.