Distribution Strategy in Companies

Question: Discuss about the case of the premium shampoo, inexpensive laptops and customized designs. Answer: Introduction The paper focuses on generating conceptual understanding of different types of distribution strategies like direct, indirect, exclusive, selective and intensive. It would then focus on applying the conceptual understanding of the different distribution strategies in understanding the distribution strategy that can be employed by firms involved in three different cases. The analysis would also reflect on the pros and cons of the different types of distribution strategies related to the different cases. The Case of the Premium Shampoo The premium priced shampoo priced at $250 is taken to be distributed in the larger market through the use of Direct Distribution strategy. The use of the direct distribution strategy is favored over the indirect distribution strategy as in that it helps in transferring direct ownership of the premium and high quality shampoo from the producer to the customer. The manufacturer is thereby required to sell the shampoo through the use of online, mobile, electronic commerce and also through the use of direct marketing channels(Richardson Gosnay, 2010). The use of direct distribution strategy ideally helps in generating greater control of the manufacturer or producer on the distribution of the product. The same however limits the potential of the shampoo manufacturer in employing wholesalers and retailers for gaining an increased coverage of the consumer market (Richardson Gosnay, 2010). Similarly, the manufacturer of the costly shampoo product can also focus on using the exclusive distribution strategy for marketing and distributing the costly shampoo product (Paley, 2007). The use of the exclusive distribution strategy is justified in that it helps in reducing the dependence of middlemen for marketing and distributing the product. However, the use of the exclusive distribution strategy limits the movement of the seller and producer to selected stores (Lambin Schuiling, 2012). The Case of the Inexpensive Laptops Regarding the case of the inexpensive laptops priced at $150 the indirect marketing or distribution strategy needs to be effectively adopted as that would help the producer in leveraging the support of intermediaries like wholesalers and retailers in marketing the laptops to a larger number of consumers. It would thus help in generating increased market coverage. However, the use of indirect distribution strategy would tend to generate increased conflicts between competitors and channel partners (Richardson Gosnay, 2010). Similarly, the laptop producer can also focus on employing the intensive distribution strategy for marketing and distribution the low priced laptops in the greater market. The use of intensive distribution strategy is favored in that it would help in reflecting the laptops as convenience products and thereby in marketing the same through the use of a wide network of retail stores (Paley, 2007). The use of the intensive distribution approach would however tend to cause increased competition while also tends to affect the relationship between the manufacturer, producer, supplier and retailer groups (SRINIVASAN, 2014). Moreover, the use of the intensive approach can also liquidate the value of the product or service offerings and can cause increased competition between the different retailers(Paley, 2007). The Case of Customized Designs The case of the company devising technology that encourages consumers in generating customized designs reflects that the company can effectively focus on the use of direct distribution approaches in distributing and marketing the product over the marketplace. The use of the direct distribution approach is required to be undertaken in that the same helps the producer of the online technology in marketing and distributing the same directly to target consumers without the involvement of middlemen. It helps the technology producer to foster greater control over the market and also in enjoying reduced distribution costs (Richardson Gosnay, 2010). Again, the technology producer can also focus on using the selective distribution strategy in that the same would help the producer in marketing and distributing the product through the use of selective outlets. The same helps in reducing the control of the intermediaries on distributing the technology product. It also helps in generating greater control of the producer or manufacturing company on marketing and distributing the product (Baines Fill, 2014). Further, the use of selective distribution strategy would help the producer or manufacturer in gaining the advantage of cooperative advertising (Vecchi, 2016). The use of cooperative advertising campaign would effectively help in distributing and allocating the advertising costs between the producer and retailer. The use of the selective distribution strategy however fails to gain exposure to large number of stores for marketing and distribution of the product in the larger market (Paley, 2007). Conclusions The analysis of the different distribution strategies contributed in applying the same for identifying the right kind of distribution strategy that can be employed by the firms involved in the three different cases concerning the premium shampoo, the low priced laptops and also the technology used for custom designing of garments. Both conceptual and pragmatic analysis is carried out for gaining the needful inferences. The analysis reflects the different types of advantages and challenges that are countered by the companies involved in the three cases on employing the distribution strategies. Further, the analysis also focused on justifying the reason as to the selection for the specific type of distribution strategy for the different cases that helps in exploring the benefits and challenges involved. References Baines, P., Fill, C. (2014). MARKETING 3E P. United Kingdom : OUP Oxford. Lambin, J.-J., Schuiling, I. (2012). Market-Driven Management: Strategic and Operational Marketing. United Kingdom : Palgrave Macmillan. Paley, N. (2007). The Marketing Strategy Desktop Guide. United Kingdom: Thorogood Publishing. Richardson, N., Gosnay, R. M. (2010). Develop Your Marketing Skills. United States : Kogan Page Publishers . SRINIVASAN, R. (2014). SERVICES MARKETING: THE INDIAN CONTEXT. New Delhi: PHI Learning Pvt. Ltd. Vecchi, A. (2016). Handbook of Research on Global Fashion Management and Merchandising. United Kingdom : IGI Global.