Channels Of DistributionBy: Zahra H. & Vithusha M.

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THE UILTIMATE GUIDE TO MERCHANDISING TO 2019

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Channels of Distribution

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A direct channel of distribution is where a company sells their product directly to their end customer. An example of direct distribution is Netflix or any other streaming service, as they provide their product to the end consumer without any distributors. Another possible example is an athletic apparel company that produces sports shoes and sell them through an e-commerce website or at their own retail store.

Netflix

Retailers are people or businesses that sells goods to customers in usually small quantities. Examples includes Canadian Tire Corps, Lowe's and Walmart.

Walmart

Indirect distribution means getting a distributor to get your product to the retailer who will sell your products on the behalf of your company. This is an effective and efficient option as your business grows, and you don't want to use time and energy to sell your own product to a mass number of people. Examples include Amazon and Zappos because they sell your products on behalf of your company.

Amazon

Wholesalers are a person or company that sells a large number of products at a low price, usually to retailers that will sell the product to the end customer. Examples include Costco and Holland Imports.

Costco

An importer can be a country, firm, or person that purchases goods from another country to use in their own country. For example, Canada imports gas, oil, cars, electronics like phones and computers and medication.

Importation of Cell Phones

Channels Of Distribution By: Zahra H. & Vithusha M.

Intensive Distribution

Using intensive distribution, a business attempts to move its goods from a small vendor to a large retailer. A customer will be able to find the merchandise almost everywhere they go. This approach is typically driven by a focus on customer convenience.

Common Example: Coca-Cola

Coca-Cola

Retailers

Wholesalers

Indirect Distribution

Exclusive Distribution

When a product is exclusively available for purchase by a select group of retailers, it is said to be distributed exclusively. An agreement between a supplier and a retailer that gives the retailer the only authority to carry the supplier's product in a given geographic area is known as exclusive distribution.

Common Examples: Luxury brands like Lamborghini, Mercedes, BMW, Rolex, etc.

Gucci

Importers

Main topic

Selective Distribution

Selective distribution is a method of distribution in which a small numbet of carefully chosen outlets are used to provide the product to consumers. This channel aims to maintain a balance between costs associated with inventory and storage.

Common Example: Sony TVs are available at several stores, but not ALL stores carry the same models.

Sony Bravia TV

Specialty Distribution

Specialty channels of distribution are any direct methods of product delivery to consumers without the use of retailers. In other words, it is distribution without the use of intermediaries.

Vending machine

Online Shopping Websites E.g. Amazon, Ebay

Common Examples: Vending machines

Direct Distribution