Distribution

Distribution

By Definition, Marketing channels are a set of independent organizations participating in the process of making a product or service available for consumption to the user.

There are different kinds of channels based on the number of levels between the manufacturer and the consumer/customer. They are - 

• 0-Level : Manufacturer : Consumer

• 1-Level : Manufacturer : Retailer : Consumer

• 2-Level : Manufacturer : Wholesaler : Retailer : Consumer

• 3-Level : Manufacturer : Wholesaler : Jobber : Retailer : Consumer

AllOut currently follows the 2-Level strategy. The product is first taken by the distributors/wholesalers and then distributed to the retail outlets from where the customer purchases it.

Company data shows that in 2001, there were 120 distributors of AllOut and of the 900,000 outlets that sold repellents in the country, AllOut was available only in 20% of the outlets. The lack of an established distribution setup was one of the major reasons why GSLL and R & C had an advantage over KPLL, with the former two being multi-brand companies.

Relationship between Life Cycle Concept & Marketing Channels

The marketing channels used to get the product through to the consumer also depends on a number of factors. We can also relate the marketing channels picked based on the Life cycle stage. 

• Introduction Stage - Selective distribution; more focused.

• Growth Stage - Increase the distribution; make the product available in more outlets to ensure maximum reach.

• Maturity Stage - Maintain the distribution reach acquired in the growth stage or maybe even increase it by a little to prolong the maturity stage by keeping the reach broad.

• Decline Stage - Gradually withdraw the product from intensive distribution and make it more narrow.

As and when the life cycle stage evolves, the distribution also varies. This is mostly done to cut down on excessive distribution costs, quality control etc.