Distribution Channels

Annual sales are currently around the £10m level, distributed among the wholesalers as indicated in Table 1. Derrick’s control about 35% of its metropolitan market, but this shrinks to less than 10% in outlying areas where there are many small competitors.

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.

→ about 65% of revenues from sale of individual products; customized products represent 35% of sales

Americans are an elite class of consumers. As consumers, Americans are very comfortable in knowing when a product will be needed or wanted, where to find that particular product, and how much they are willing to pay for a particular product. Consumerism has become a second nature that we seldom give much thought to the process. This desire for products can be attributed to the work put in to marketing and promoting such items. Marketing strategies put in an overwhelming amount of effort to grab the consumer’s attention, create a need or desire and develop brand loyalty. The first REDBOX kiosk was launched in 2002, inside a McDonald’s restaurant. Since then REDBOX has expanded to over 27,000 locations. Solely in part to the way the REDBOX

* Higher sales volume in wider location and hence higher profit (distributor require either high volume sales or high advertising, hence if tied up with any one distributor, the sales target might go high requiring the company to be more competitive)

To truly enjoy the understanding of such a large distribution channel I believe we need to start with the beginning of the process which is the suppliers. When it comes to purchasing power, no one is stronger than Walmart. With this purchasing power they are able to shape their suppliers the way they feel necessary. Walmart suppliers are required to use their just in time automation which ensures Walmart racks are always supplied but avoiding inventory. In the suppliers eyes, Walmart is a merchant that

For Target, the distribution strategies they are employing are primarily a the moment selective distribution although they also use intensive and exclusive distribution methods as well (Solomon, Marshall, & Stuart, 2018). For instance, they use exclusive distribution when they market specific brands such as the K-Beauty product line which they promote in their stores (Get Your Glow On, 2017). Comparatively, though Target uses intensive distribution when they purchase in bulk from wholesalers throughout the world and then distribute the products to each store (Solomon, Marshall, & Stuart, 2018). In particular, when large retailers who have as many outlets as Target does buy in bulk they are able to use competitive pricing to their advantage. Another strategic move they can capitalize on is the placement of product where the majority of consumers view the item upon visiting the establishment.

Dissemination can have problems such as the various intelligence and information records systems, privacy issues, information system, security issues, operations security of shared information, the means of dissemination, interoperability issues. (Carter, 2008, Pg. 69)

each channel and the deliveries to each channel. You find that the retail channel accounts for 70%

more to maintain the sales very are going up and making more money. When more profit it 's

This chapter will present the theoretical framework used in this master´s thesis. This chapter gives an overview of theories explaining distribution channels and consumer adoption. Ending with a literature review in financial service research, a research area closely related to digital receipts.

As a result, larger distributors typically carry competitive products. Margins on product resale is generally higher than 10%.

each channel and the deliveries to each channel. You find that the retail channel accounts for 70%

The revenue comes not only in one or two specific products, but from all products

* By stock turnover ratio of the respective product; expenditure for fast selling products and slow selling products.