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Chapter 13: Distribution & Retail

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Jorn Steuns

on 8 December 2015

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Transcript of Chapter 13: Distribution & Retail

What is distribution?
Chapter 13: Distribution & Retail
By: Eduard Baviera, Maha Elsarrag, Linus Holler & Jorn Steuns
What makes me shop
at certain places?
What can I do to satisfy these customers?
Could we buy
those dressings?
Lets get some dressings!
Demand is growing
too fast?!
What should I do now??
Step Three
Alice decided to have the dressings made in an independent packing facility and sold to other stores in the area. Alice's family divided up initial sales responsibilities to call on regional stores in their spare time. As
Alice's Dressings
gained more popularity, there just wasn't enough time to call all of the stores they desired?
Could you call the grocery store,
to tell them that we
can restock them?
Again, sis?! I don't have
free time anymore!?
Hmm, what can I do to
give her back some free time?
Looking Back
When Alice sold her dressing to customers from her restaurant, was this an example of an indirect or direct channel of distribution? Why?
Looking Back
Next, Alice sold to a local grocery store at a discounted wholesale price. How did this add more efficiency to Alice's distribution channel?
How are Distribution Channels efficient?
Breaking bulk
- wholesalers and retailers purchase large quantities of goods from manufacturers, but sell only one at a time.
Channel intermediaries reduce the number of transactions by creating
- providing a variety of products in one location so that customers can conveniently buy many different items from one seller.
purchase process
is easier for both customers and manufacturers.
Looking Back
If Alice decided to upgrade her bottle and only to sell in upscale specialty and grocery stores, what kind of wholesale intermediary would you recommend she uses?
Refer to chart on page 499
(Think about her target market, her distribution needs and keeping costs low)
Looking Back
Consider the internet's role in the Distribution Channel, if Alice wanted to save money and operate with fewer employees, how else could she sell her salad dressings?
- the process of eliminating traditional intermediaries as companies question the value added by layers in the distribution channel
Retail - Wheel of retailing hypothesis
Reinvestment of retail:

What do they sell?
Level of Service
Merchandise: - Breadth
- Depth
Major Retail Forms
Convenience Stores
Specialty Shops
Department Stores
Non-shop Retailers
B2C E-Commerce
Looking Back
What do you think made Apple's retailing so successful?
Shopping "Experience"
Same approach as IMC
Products, Store and Personnel support one Brand Image/Message form one entity
Case Study : Alice's Dressings
Step One
Consider a small one-store familiy restaurant named Alice's, with delicious, unique homemade salad dressings (e.g. Pomegranate, Vinaigrette, Rum-Raisin-Orange Etc.)
Initially, the dressings were only available to customers eating at
. Then customers requesting bottles to buy.
Step Two
Initial sales and distributions of
Alice's Salad Dressings
were from the restaurant to walk-in customers. Then
Alice's Dressings
were sold to a local grocery store at a discounted wholesale price. As local demand grew, Alice and her familiy couldn't handle packaging enough of the salad dressings in a timely manner.
What makes retailers successful and how can we classify them?
How can I help you?
Case: Alice's Dressings
Ikea Case
The science and arts of getting goods and services to customers

Part of the marketer's role in delivering the value proposition deals
with understanding and developing effective distribution strategies
Subset of the supply chain
Purpose Statement:
Purpose Statement: How can distribution and retail add value to a business?
Optimizing the retail and distribution process is a core activity for any successful business. It is vital for delivering products to the customer, can decrease costs and support a certain brand image.
Read the case
Read the provided background information
Discussion question from the book

C, F, D
Supportive Activities:
Main Activities:
A, B, E, G
Core: B, C, D, E
Supporting: A
A & B

What is the decision facing IKEA?
What factors are important in understanding the decision situation?
What are the options?
What decisions do you recommend?
What are some ways to implement your recommendation?
Thank you for your attention!
Full transcript