Culture and distribution
Introduction
Distribution of products takes place through channels. The channels that are going to be used in ensuring that the products reach consumers are through intermediaries. The choice of the intermediaries is important in ensuring that the image and the integrity of the company are maintained (Shang et al 2009). The perception that the consumers have on the intermediaries or the distributors will play a fundamental role in the sale of the products (Kotler, 2009). Apart from distributing these products, they will have the responsibility of marketing products to customers through sales promotion and other advertisement modes. The company will have the authority to control over the quality and the price of the products in the market. Having authority to control price ensure that the intermediaries does not exploit the customers by charging them higher prices. Therefore, it will ensure that the prices of the products remain in their original form.
Cultural background
In selecting the intermediaries, the cultural background will be considered. People have different cultures and languages. Therefore, to ensure that products are well received in the market, the intermediaries will have to come from various regions where the products are to be distributed. These intermediaries have a good understanding of the geographic locations as well as understand the needs of the customers. Furthermore, because, of the familiarity, customers will be free to interact with them and buy these products.
Location
The products will be distributed in the entire regions of Kenya where there is no electricity. They will also be distributed in areas where there is power for emergency use incases of power failure. The intermediaries will come from all regions to ensure that all customers are reached (Kotler, 2009). However, the first segment of the products will be distributed in lower eastern among low income people residing in coastal areas and the second segment will be in areas such as Runda and Muthaiga that have people from upper middle income. The products will be distributed throughout the year, to cater for the new customers that crop up on daily a basis. Continued supply will also instill confidence in the customers about the company and this will create loyalty among the customers. Agents will be used to ensure that products reach the consumers. The agents have no right of ownership and therefore, act on behalf of the producer. Products will be ordered through the agents who will relay the information to the producer.
Variation in distribution
The distribution of the products will be categorized into segments, to target specific markets. The customers have different needs, they come from different geographic locations and therefore, for effective distribution, they will be put into segments. To ensure that customers are well-understood, psychographic segmentation will be used. Consumers will be divided according to their personality, social class, lifestyles and values (Goldstein, 2007). For instance, customers that come from higher social class will be supplied with products that are of high value and which cost high compared to those from low social class. Therefore, there will be variations in the distribution of products to various target markets.
Competitive reaction
It is expected to encounter challenges when conducting a business. Other companies also sell products that the company deals in. Chinese products are highly distributed in the market. Therefore, it will be a challenge in getting distributors to distribute the company’s products. These distributors already in existence will come up with various strategies to counteract our products (Kotler, 2009). Some of the strategies they may use are to carryout extensive sales promotion and marketing in the markets that they are already established to ensure that we do not get enough market share. They will also aspire to expand their areas of jurisdiction to mitigate the loss that they will face as some of the customers will resort to purchasing our products (Xia, Xiao & Zhang, 2013). Therefore, this will be a challenge to our products. The best strategies to counter these behaviors of our competitor’s distributors are to increase the level of marketing programs and to use price strategies to sell our products. Furthermore, quality of the products will help the distributors to have a competitive edge over their competitors.
Market research
Market research is integral in every stage of conducting business. It is through marketing that, the markets and the needs of the customers are identified. The research also helps in planning and ensuring that appropriate strategies are adopted to ensure that the organization has a competitive edge (Moore & Pareek, 2009). Marketing research at this stage will seek to identify the appropriate distributors that have the competence to ensure that the company achieves its set objectives. Identification of the right distributors is an important step in ensuring that products are well-marketed and distributed to target audiences in the right time and in right quantity. Secondly, marketing research will seek to identify the areas where there is a prime market to be able to assign the distributors regions that they can sell the company’s products. The research will provide sufficient information about the appropriate distribution channels to help the company make appropriate decisions.
Conclusion
Distribution is a key stage in marketing. Products must be distributed to customers for the company to realize its objectives. Using appropriate strategies in distribution is essential to ensuring that indeed the aims and objectives of the company are realized.
References
Goldstein, D. (2007). What is Customer Segmentation?, Mind of Marketing.net, New York, NY.
Kotler, K. (2009). Marketing Management, Pearson Education Australia: Frenchs Forest.
Moore, K., & Pareek, N. (2009). Marketing: The Basics, In: The Basics. Edition: 2nd ed. Routledge. 2009. eBook.
Shang, J et al. (2009). Distribution Network Redesign for Marketing Competitiveness, Journal of Marketing, 73(2):146-163.
Xia, Y., Xiao, T., & Zhang, G. (2013). Distribution Channel Strategies for a Manufacturer with Complementary Products Distribution Channel Strategies for a Manufacturer with Complementary Products, Decision Sciences, 44(1):39-56.
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