Channel Management, Wholesaling, and Physical Distribution

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Channel Management, Wholesaling, and Physical Distribution Introduction This report discusses the Channel Management, Wholesaling, and Physical Distribution process for distributing wakeboards. The report looks at a medium-size wakeboard manufacturer (MKMC Inc.) looking to expand into the US market. The report will analyze and give recommendations on the best distribution system for the product. Our product is in the growth stage of the product life cycle. (appendix 20) Target Market – Boarders Demographics: (appendix 1 and 2) VALS – Experiencer (appendix 2 and 3) • Age: 19-30 - Young, enthusiastic, and impulsive consumers • Gender: Male - Seek variety and …show more content…

favourite store to shop at) Manufacturer – Wholesaler – Retailer – Consumer: Four channels, indirect distribution Pros Cons • No additional cost to the manufacturer (appendix 12) - Less profit margin to the manufacturer but at the same time • Drop shipping limits number of transactions the overhead costs are less. • Direct interactions of customer and sales staff. • The customer can now: o Ask questions o Get more information about additional services o Feel /test the product o Take advantage of other product advantages • Customers now have the ability to buy all associated products at one location (Creating assortments) (appendix 12) • Wholesaler and retailers buy larger quantities of a product than a consumer (Bulk breaking)

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