Strategic distribution refers to how an organization will distribute the product or service they are offering to the end user. The organisation must distribute the product to the user at the right place at the right time. Efficient and effective distribution is important if the organisation is to meet its overall marketing objectives. If an organization underestimate the demand and customers cannot purchase products because of it, profitability will be affected.
ME.S advises companies with regard to direct, as well as indirect distribution networks:
- Indirect distribution involves distributing your product by the use of an intermediary for example a manufacturer selling to a wholesaler and then on to the retailer.
- Direct distribution involves distributing direct from a manufacturer to the consumer. The advantage of direct distribution is that it gives a manufacturer complete control over their product.
Depending on the type of product being distributed there are three common distribution strategies available:
- Intensive distribution: Used commonly to distribute low priced or impulse purchase products like chocolates, soft drinks e.g.
- Exclusive distribution: Involves limiting distribution to a single outlet. The product is usually highly priced, and requires the intermediary to place much detail in its sell. An example would be the sale of vehicles through exclusive dealers.
- Selective Distribution: A small number of retail outlets is chosen to distribute the product. Selective distribution is common with products such as computers, televisions household appliances, where consumers are willing to shop around and where manufacturers want a large geographical spread.
Our industry soulutions at a glance
Let us be a part of your success story
- Strong experience in supporting foreign companies to develop their business in Germany
- Our clients success is our success. Our objective is to grow along our clients
- We are family owned. Our long- term perspective allows for good strategy and decision-making
Our market expansion services at a glance
To learn more about how we can add value to your business in Germany, please do not hesitate to contact us today!
Contact us Book a meeting https://wa.me/4917671750811
Book your advisory call today
We help you to assess the current phase of your business and to build your personal roadmap about how your business can start and grow in Germany.
Market Entry Newsletter
Our newsletter covers the news you need. Subscribe now.