M2: Compare the methods used to distribute products and services.
For M2, I will compare the different distribution channel for two different product which is food and clothing. I will examine how retailer distribute food and clothing and what’s required to ensure the product is at good condition before it reach to customers.
Food
The distribution of food is different from clothing as suppliers will need to bear in mind how to appropriately handle food products, example, and health inspection in storage room to avoid transmissible disease. The food distribution is short to ensure that the food is fresh and will not go out of date. This is why many food retailer like Tesco mainly source their product in UK than overseas. Food like fruits are perishable therefore retailers need to take in consideration to how they will handle the product, transport they are going to use, preservation of product and how it’s going to be packaged before they sell it to customers. Perishable food like fresh strawberries or frozen food are both time and temperature sensitive. This is why business like Tesco usually temperature in their storage room is at optimum temperature range to maintain quality and freshness of the food like fresh strawberries.
On the other hand, Tesco also packaged their food like fresh strawberries in a plastic container to ensure that it’s not going to smash. This also enables customers to purchase the product easier as the fruit is already packaged for them.
When
2) Explain the role of channel intermediaries in the product distribution process. Why is their role important?
To understand the logistics and distribution channel of Donut House and find the areas of improvement.
Distribution channels are organized in several ways: conventional, vertical, horizontal and multichannel (Kern R. 2013). Some of these organizational methods are more structured than others. When a distribution channel deals with more than one independent producer, such as wholesalers and retailers, the channel is known as a conventional distribution channel. (Kern R. 2013) These channels are not normally known to be strong and typically don’t give the customer the quality of product that they deserve. In a vertical marketing system, the retailers, wholesalers and producers, join forces to create a unified front, promoting an individual product (Kern R. 2013). Vertical distribution channels are stronger than the conventional distribution channels because all of the companies involved carry some of the load of power. (Kern R. 2013) In a horizontal distribution channel, companies join up and combine all of their finances and resources, in order to take on more than one company or product (Kern R. 2013). A multichannel distribution channel is where a large corporation uses two or more marketing channels to better target their desired customer segments (Kern R.
As mentioned in an earlier assignment, there are three main types of distribution channels. The first is the channel that goes from the producer, then to the wholesaler, then to the retailer or sells to the consumer. The second channel starts with the producer who sells straight to the retailer, who then sells to the consumer. The third channel goes directly from the producer to the consumer. Channels one and two are classed as indirect marketing channels, whereas channel three is a direct marketing channel as it goes straight from producer to consumer.
In this report I will be comparing methods used by two different retailers on how they distribute two chosen products, of my choice, in two different retailing sectors. Seeing as the food and clothing sector both have very different styles of how they meet their product requirements, I will compare Tesco and JD; The products from these two companies itself that I’m going to compare is ‘Tesco Value Bread’ and Nike hoodies.
That is a good question to ask, I would say that the food stores would have different contract with their seller. I say that because some of the food contract should be different, because you would not want to have to same contract that you have for the fresh farm food as the frozen food, since they would be package different. What do you think about the question.
A distribution strategy is in relation to how a company will distribute the product or services they are offering to
The food industry of Australia is a vital component of the country's wealth and economy. The industry makes a incredibly high contributions to the economy of the regional areas through business, service opportunities and employment. As per these subsidiaries of the food industries, the main aspect on which every retail store emphasizes is the quality of the product. More precisely we can say that it is based on the “freshness” of the food.
This is so different from other supermarkets. Producers can directly control the selling of their products, which is more fair for both producers and customers.
* Local stores or distributors also make a strategy for delivery perishable productsto the customers.
Tanner and Raymond(2010) refer channel of distribution as ‘the chain of intermediaries a product passes through from producer to final consumer’.Rufus & Coco will use both direct and indirect channels of for the distribution of KYON .
Businesses over the years have learned from their mistakes, and make the necessary adjustments within their organizations to eliminate the issues and prevent them from occurring again. By conducting market testing, manufactures can collect input from the end user, then analyze the information to determine the best location to place their products for purchase. The various demands received by manufactures can be mind boggling and without proper handling it can lead to devastation. Daily, manufactures deal with internal demands from their employees; from adjusting work schedules to allow for vacations, to better healthcare insurance, or higher wages. Moreover, companies receive demands from their distributors, requesting an increase in product production to meet the demand from the retailers. Along with increase in production, there is demands for transportation, which all of these demands affect the manufacture’s bottom line and without proper planning and budgeting, these demands may lead the manufacture out of business. Product distribution is critical and when the product is not available it affects more than just the manufacture. Understanding the direct and indirect approach for distributing a product along with choosing either an extensive, intensive, or exclusive distribution channel will allow the product to reach the distributor, retailer, and consumer all while making everyone in the supply channel happy.
1. To understand the development and management of the channels in distribution and the process of goods distribution in complex, competitive, and specialized economies.
Fyffes procures its products worldwide and is one of the leading distributors of southern hemisphere fresh produce in Europe, in particular fresh produce sourced from South Africa and South America. The most common themes arising from the top managers so far involved the need to foster relationships among the SBUs and work with each other to reduce costs (Geoff Percival, 2012). It is critical for the relationship between the suppliers (Other region markets) and the distributors (UK, Ireland and EU). The four SBUs work together for the fresh fruits supplying and selling, the company launched its worldoffruit.com web site and subsidiary, offering Internet-based business-to-business fruits and vegetables sourcing and information supporting the company's operations are its network of 100 storage, distribution, ripening, and other facilities, a fleet of 17 company-owned or leased temperature-controlled ships, and its own land-based transportation fleet, it can share and reduce the transport cost. The synergy management of the four SBUs also helps Fyffes add more value to the supply chain and make the delivery more efficient.
The storage of fruits and vegetables in a store is to extend the life. Storage helps in reducing biochemical change in fresh F&V. Cold storage slows down the growth of contaminating micro organisms. After harvest season they can achieve higher sale.