Case Study On Product And Distribution Strategies

Published: 2021-06-22 00:38:39
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Category: Business, City, Internet, Strategy, Customers

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Depending on the manufactured product it’s supplier has to choose a right strategy to deliver the product/service to the customers. According to Philip Kotler, “Successful go to market strategies require integrating retailers, wholesalers and logistical organizations” therefore the main goal is to hand the product to the customer, to convince that it better and finer than any other options available.
I have chosen to distribute custom designed jewelry. It very unique and unusual product and requires extra care and attention in choosing a distribution strategy. One of the main advantages of the custom product is it’s exclusiveness. Using advantages right brings desired profit and might even exceed the expectation. To distribute the product the exclusive method has been selected which is close to the selective strategy however it still differs and has very particular strengths, opportunities and threats.
The intensive distribution, for example, is used to sell a product which is quite common but better that other competitive products of another brands, have lower price or other advantages in order to settle strong market positions. Exclusive distribution is usually used to present products that have no duplicates and are very particular due to the brand name or manufacture process. This form only requires one wholesaler (retailer) in a specific area. Unlike intensive and selective distribution methods this strategy does not cooperate with multiple retailers and distributors because the presented product “sell itself”. Therefore the most important element of marketing mix in producing custom designed products is promotion and advertisement campaign. It is of high importance to create a popular and quality brand, a recognizable name that would work for itself that would make customers look for you not you search for customers.
Custom designed jewelry is represented through couple of selling spots in different geographical regions. It is mainly adjusted for the purpose of accessing the product in different areas. The central store which Is the main distributor is located in one of the New York biggest malls and has the widest range of items. Conducting a marketing research has shown that that it is more sufficient to cooperate with couple of big jewelry retailers in different cities (Washington , Boston, Chicago, etc.) that to open own store in each city. According to Philip Kotler, “The most important thing ii to forecast where customers are moving and to be in front of them”. Nowadays customers are very much focused on products that would emphasize attention on exclusiveness, therefore good taste and elegance. A lot of buyers are not satisfied with getting ordinary products, they want to have something designed for them only, fee unique and special.
The chosen distribution type does not require cooperation with numerous retailers which is time and finance consuming. As our target audience are people who are willing to spend some more time and money in order to have something extraordinary presented to them we need to keep in mind that they often prefer to surf in internet until they find what they like that’s why products catalogue is always available on the official website so the customer can order identical or similar piece and receive it in couple of days.
Basically there are three channels for jewelry distribution which are the biggest distributors in couple of selected cities, own production studio that is the main retailer and online distribution through official Web catalogue and couple of other jewelry specialized Web sites.
The main benefit of the exclusive distribution is efficient use of finance resources as there is no need to pay salaries to small retailers and multiple distributors, training them etc. There is more time and opportunity to focus on the custom designed pieces itself, develop the line and make the brand more popular and recognized.
Broadcast and cable TV should be distributed through the intensive distribution strategy as these services are widely offered and if a particular one is not available the customer might simply replace it by a similar service. In every city there are couple of local companies that offer the broadcast and cable TV and slightly differ in prices. Analysis of the main target show that selective strategy fits the best for internet programming as it involves the producer to deal with a lot less retailers and distributors in a particular geographical area. Customers are usually aware about market prices for such services and are ready to search for one that meets their expectations the best. Advertisers are not that widely represented in a particular geographical area and it might be more challenging to find multiple advertisers to choose from. Prices usually differ a little more depending on the company’s image, experience and performance on the market.
Kotler, P., Trias De Bes, F. (2003). Lateral Marketing. New Techniques for Finding Breakthrough Ideas. New Jersey, Hoboken: John Wiley & Sons, Inc.
Rosenbloom, B. (2004) . Marketing Channels: A Management View. Ohio, Mason: South Western, Cengage Learning

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