8 Place: Channels of Distribution

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Distribution Channel Diagram

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8 Place: Channels of Distribution

Retailers

Retailers are businesses that sell goods or services to consumers. They buy products from wholesalers or manufacturers and sell them at a higher price, making a profit.

Wholesalers

Wholesalers act as intermediaries between manufacturers and retailers, managing distribution, allowing manufacturers to focus on production and offering a diverse product range at competitive prices.

fresh-CO is an example of a company that sells its products through wholesale. fresh-CO purchases products in bulk from manufacturers and then sells them in smaller quantities to retailers or other businesses.

Direct distribution

Direct distribution involves selling products directly from manufacturers to consumers, reducing costs, improving customer experience, enhancing order fulfilling,

Amazon utilizes direct distribution by selling products directly to consumers through its online platform.

Specialty

Brand-centered goods that revolve around their unique attributes

Manufacturer specialize around one product.

Importers

People bringing goods and services from abroad.

A small example of importation. Russia import oil to (China, Japan, India.)

Subtopic

Intensive distribution

When companies push their products to any retailers possible.

Another example of intensive distribution could be Cheetos, they use intensive distribution to push their product in every outlet possible.

Apple Inc, can be used as an example of intensive distribution, Apple partners with many outlets, (Electronic stores, big-box retailers,) to make their product widely accessible.

Selective distribution

When a company decides to sell their product at their own stores and carefully handpicked retailers.

Making a product available in more then one outlet, (Puma, Nike, Adidas.)

Sony TVs can be purchased at a handful of retailers like Walmart, BestBuy, Target.

Exclusive distribution

When the manufacturer limits the distribution sales of product.

A product is not very accessible and could only be found through a thoroughly handpicked retailers.

A popular show is only available on a paid distribution platform Amazon videos.