Unit 29 P2

Task 1 - Describe the distribution process through different channels from the manufacturer through to the customer for the following; an independent retailer and a multiple retailer. (P2)

How have they helped John’s Boots to gather data on target markets and individual preferences

“A distribution channel strategy enables us to sell to customers in geographical areas or market sectors that the direct sales team cannot reach. We can choose from a number of distribution channels, including wholesalers, retailers, distributors and the Internet. Each channel gives us different options for dealing with customers and prospects. However, to ensure that our distributors operate effectively on our behalf, our strategy must incorporate the right level of control and support.” (Linton)

Instead, shift your focus to delivering experiences layered with worthwhile product interactions, unique online checkouts, and must-tell-a-friend customer service.

In retailing it is important to make as much gross profit as possible while delivering a good level of return from the investment they originally make in stock. The retailer needs to do this through making as much money as possible through making as many sales of their products as possible. It is this attitude, of making as much money as possible, that makes retailers get into the business in the first place so they can use the money they bring in to secure the

Over the past decade, the consumer has taken the lead in online brand perceptions and conceptualizations. Multi-channel business practices are becoming more adaptive with its fast-growing and evolving consumer market. It is essential that retailers in the 21st century acknowledge the success of multi-channel businesses. The function of multiple-channel retail, also commonly known as omni-channel, is to coordinate a coherent way of managing, integrating information, and delivering service and products to the end-customer online and in-store. In both mass retail and in luxury retail, having more than one channel is

Multi-channel retailing is what all businesses should strive for it they are interested in going global or simply staying home-bound, but gaining profits through other retailing formats. Long gone are days where single-channel retailing could be relied upon for continuous business success and growth. If you own a storefront property to sell your goods and services now is the time open a web based version of the physical store to gain clients from across America to across the seas. “Multi-channel retailing enables firms to reach different customer groups, share costs among

Department stores are a business concept of advertising and selling accessories and goods directly to customers for their own use. Retailers are responsible for carrying out operations and services; they are an ingredient of this integrated system that is known as supply chain. Basically, it is a process where traders or merchants acquire goods or products in outsized magnitude from organization directly or through a series of wholesalers (Welter, 2012). Later, they sell out all the stuff in small quantities to the consumers in order to grab profit from them.

The word retail is derived from the French word ‘retaillier’, which means to cut off a piece or to break the bulk. A retailer may be defined, as a 'dealer or trader who sells goods in small quantities' or 'one who repeats or relates'. Retailing thus may be understood as the final step in the distribution of merchandise, for consumption by the end consumers. Put simply, a firm that sells products to the final consumer is performing the function of retailing. It thus consists of all activities involved in the marketing of goods and services directly to the consumers for their personal, family or household

“In a sense, perhaps the most important sense, a brand is a promise. You know what you’re going to get with a well-branded product.” Geller explains. Even in footwear nowadays, when associating ourselves into particular social and cultural facets of life, we tend to gravitate to particular brands. In this report, I intend to comparitively analyze the two shoe brands; Vans and Havaianas. These two brands started up as classic, practical footwear, but have gradually grown into multi-million companies with great reputations in society. On account of this, I will be conducting research and comparing the two companies based on the model consumer behaviour.

Section A includes a case study about Sainsbury abandoning their Middleborough superstore and why they made this decision. In addition this section explains what is retailing, as it is the distribution channel function where one organization buys products from supplying firms or manufactures the product themselves, and then sells these directly to consumers.

In 2014, Selfridges was among the first of the big retailers to launch a multichannel approach to marketing and sales. Then, the retailer overhauled its website and improved usability on different devices. But on top of that, Selfridges also included new brands, started offering more options in terms of delivery and purchase, and streamlined the way in-store and online elements worked. Speaking to Retail Gazette, the then director of Selfridges’ multichannel strategy, Simon Forester said, “We want people in the store to think about all aspects of this service, not just the channel they’re in. People may not want to buy in store, they could be coming in to see products and then order them later at home or want them sent to where they live.” All the stores now have Wi-Fi, with consumers being able to interact with advertisement and products online and in-store in real-time.

Firms distribute their product through multiple distribution channels which include direct and indirect channels. The channel in which distribution function is grouped by a supplier and one or more of intermediaries, is known as an indirect channel. However, a direct channel distributes products from producers to the users directly without introducing any intermediaries. Many reasons can be presented for the firms to adopt multiple channel strategy because advances in information and manufacturing technology have encouraged multiple channels. However, multiple channels for distribution of the products in the market arise many challenges and one of them is the

Distribution - New distribution channels and incentives to resellers in order to avoid losing shelf space.

At the present time, with the development of economy, in order to make large profits, a growing number of enterprises pay much more attention on choosing distribution channels. Keegan and Schlegelmich (2001) explained that distribution channel can be considered as the method which is used for enterprises putting products into the market for consumers to use. The traditional distribution channel goes from supplier, manufacturer, distributor, wholesaler and retailer (Frazier, 1999). Indirect and direct are two different types of distribution channels (Wilkinson, 2001). According to Silva (2008), “Well-chosen channels constitute a significant competitive advantage, while poorly conceived or chosen channels can doom even a superior product or