Marketing Assg Corrections

Product Distribution Analysis

Companies normally carry out market analysis in order to identify a potential market to produce goods to. A company like Pampered Chef had already identified the product to sell and the customers to sell too. In this case the products to be sold are knives while the consumers are cooks and campers. Market identification is not the only analysis that the company requires to carry out. It also has to come up with an effective logistics system. Logistics system of a company depends on the number of distributors at its disposal. Just like any other activity in a company logistics system in an important department that must be given attention. Logistics system determines the efficiency of product distribution and whether consumers can be continuously access the products (Fugate, Mentzer, & Stank, 2010). Pampered Chef must therefore be able to come with the most efficient logistics system for the purpose of distribution. Efficiency in transportation of goods enables consumers to easily access the products they need. Before coming up with an effective logistics system, the company has to carry out research on market segmentation this enables the company to know the location of its potential distributors. Having a good plan on how to effectively transport products to the customers will eliminate transportation hitches that may cost the company.

When it comes to distribution channels, the company may opt to use direct or indirect distribution channels. There are various distribution channels that the company may use for its goods to reach the market. The first channel that the company can use is involving wholesalers and retailers in order to reach their consumers. This method is known as indirect method as the company is not directly involved in selling its products to consumers (Mentzer & Konrad, 1991). The second channel that can be use by the company is using retailers only to reach the customers. The company could also sell its products to consumers directly. This means that the company would have to directly sell to its customers without intermediaries. The wholesalers and retailers to be assigned by the company would have to be analyzed first before they are given the job. For efficient movement of goods the location of these intermediaries must be convenient enough for the company. The type of market available for the company will also determine the distribution channel to be used. Some markets are dominated mostly by wholesalers while others are mostly operated by retailers. For the markets which are dominated by many wholesalers the company will have to assign wholesalers as intermediaries. The wholesalers will then involve retailers who will sell the products to consumers. On the other hand, if the market is dominated by retailers, Pampered Chef will have to involve these retailers to distribute its products.

Just like a logistics system, distribution channels must be effective to allow ease in movement of goods from the firm to their customers (Lambert & Burduroglu, 2000). Wholesalers and retailers are therefore important partners in business when it comes to linking the company and its customers. As mentioned wholesalers and retailers are important intermediaries to the company. Wholesalers for example will relieve the company from storage expenses as they normally store products in large quantity. Apart from reducing storage costs, wholesalers also ensure that goods reach the consumers on time. They also break bulk of goods which are produced in masses. This means the customers are able to get products in convenient amounts that they wish to have. Wholesalers are also given the duty of delivering the products to retailers.

Conclusively, this means the company will not have to get involved in the whole process of product distribution. The retailers as well contribute to the success of product distribution. Retailers are basically the last intermediaries who consumers buy products from them. Retailers are known to advertise manufacturer’s products as they normally keep stickers of the products in their shops. Retailers are also important as they give consumers directions on how to use the products. Just like wholesalers, retailers are important as they make it easy for consumers to access the products in the amount they require. With the analysis above, it means that the market research carried out by Pampered Chef is not limited to the type of consumers or type of product to manufacture. It is clear that the company has to consider every aspect of the business in order to efficiently reach their customers.

References

Fugate, B. S., Mentzer, J. T., & Stank, T. P. (2010). Logistics performance: efficiency, effectiveness, and differentiation. Journal of Business Logistics, 31(1), 43-62.

Lambert, D. M., & Burduroglu, R. (2000). Measuring and selling the value of logistics. The International Journal of Logistics Management, 11(1), 1-18.

Mentzer, J. T., & Konrad, B. P. (1991). An efficiency/effectiveness approach to logistics performance analysis. Journal of business logistics, 12(1), 33-62.