How you will deliver your goods and services to customers

Making sure your product is ready and available when and where customers want

Because it involves a movement of your product is also known as distribution strategy

The path your product takes from a producer (manufacturer) to final user (consumer)

Industrial user: Wood

Sawmill Warehouse Furniture factory

Furniture fact. Furniture store Consumer

Consumer: Furniture

Org. Ramírez Cinépolis Consumer Galerías Atizapán

Industrial user: Films

FIlma MPLC Org. Ramírez Producciones (film distributor in Mexico)

Consumer: Cinepolis

Direct ◦ Moves the product from producer to consumer with no

one in between

Indirect ◦ Employs intermediaries (people or businesses that move

products between producers and consumers)

Beauty Parlor Consumer

Specify the distribution objective.

Select the type of channel

Determine the distribution intensity

Select a specific member of the channel

Retailers

Wholesalers

Agents

Manufactures/Producers

Main intermediaries

Internet

Involves selling without transformation of new and used goods to retailers, to industrial, commercial, institutional or professional users, or to other wholesalers.

Wholesalers frequently physically assemble, sort and grade goods in large lots, break bulk, repack and redistribute in smaller lots.

Specialized stores (Boutiques, Radio Shack))

Warehouse Clubs (Costco, Sam´s)

Category Killer Stores (Home depot)

Limited line retailers (Best Buy)

Off price Retailers (Outlets)

Discount stores (Waldo´s)

Franchises (Gymboree)

Department Stores (Liverpool, Palacio de Hierro)

Supermarket (Wall-mart)

Retailers

A middlemen that expedites exchanges, represents a buyer or a seller, and often is hired permanently on a commission basis

Mainly used in international markets

Commission agent - does not take title of the goods. Secures orders.

Stockiest agent - hold ‘consignment’ stock Insurance agents

Car agencies

Sell to a geographically disperse market

Able to target and focus on specific segments

Relatively low set-up costs

Use of e-commerce technology (for payment, shopping software, etc.)

Paradigm shift in commerce and consumption

Deciding the right channel of distribution

Type of market

Number of potential buyers

Geographic market concentration

Order sales

Unit value

Perishable product

Technique nature of the product

About goods you have to decide also about the physical movement of your product and how it would be shipped

Truck, airplane, train, ship or pipelines

Internet

Intensity of distribution

According to the habits and needs of your market you have to decide: Working schedule

Labor days

Amount of production

1. Decide how you will sell and distribute your product

2. Decide your location according to your target market

3. Decide if it will go directly from you to the market or you will use intermediaries

• According to the market • According to the product

4. Which would be the intensity of the distribution

◦ Working schedule and labor days 5. Decide which transportation media you need