Distribution Strategy: Distribution Plays an Important Role

Distribution Strategy:

Distribution plays an important role in the success of a business because it ensures that a firm can deliver products and/or services to customers efficiently and at effective costs. Generally, the members of a firm's distribution channel offer a significant marketing resource that enables the company to increase market share and expand to new markets based on the established business relationships and local knowledge. Notably, distribution provides various opportunities for the marketer that could normally be linked with the other elements of the marketing mix. Nonetheless, the same distribution strategy is unlikely to be effective for every company because of the need for markets to be balanced. Therefore, companies are required to make decisions regarding the most effective and appropriate distribution strategy. The main focus of distribution decisions is to establish a system that basically permits customers to gain access and buy a marketer's product.

Distribution Strategy for Automobiles:

The basic element of a marketer's distribution strategy and system is that it must be both effective and efficient. The effectiveness is for ensuring that products and services are delivered to the right place, in the right condition, and right quantity while efficiency is to ensure that the products and services are provided at the right time and at the appropriate cost (Christ, 2011). For automobiles, there is an increased need to adopt an effective distribution strategy because the business of selling cars is changing rapidly and resulting in the adoption of new competitive rules. Furthermore, the automobile industry has for long been characterized by high costs, poor service, and tremendously unpleasant selling process. During this period, auto manufacturers have competed intensely in attempts to drive out costs and meet customer needs for improved and cheaper cars and trucks.

As part of measures to cope with the numerous changes in the automotive industry, car manufacturers are becoming serious about marketing and dealing with the weaknesses entrenched in the conventional franchised-dealer channels of distribution. Traditionally, automobiles have been marketed through dealer networks distribution channels that were developed as reasonable expansions of the supply-push model. This model of distribution has been extremely resistant to change as the dealer networks have become embedded and ingrained over time by laws, regulations, various habits, and contracts.

In light of the ongoing changes in the automotive industry, the most appropriate distribution strategy for automobiles is the Selective Distribution Strategy. This distribution strategy is usually common for products that customers are ready to shop around for and where manufacturers require a large geographical spread. Notably, the manufacturer should identify an intermediary with the experience of handling such products, is credible, and widely known by the target audience when using the selective distribution strategy. For the automotive industry, the transformation of the auto retailing channels not only require customer-service and cost improvements but also needs recognition of various programs (Hirsh, Rodewig, Soliman & Wheeler, 1999). These programs include consideration of the various customer segments to be targeted, the suitable mix and marketing level, and the distribution functions required for every customer segment.

Through the selective distribution strategy, the automotive industry will be able to identify the appropriate portfolio of distribution models and effective distribution channels to reach targeted customers. Since customers are tired of the low-satisfaction and high-pressure sales model, they want less time -- consuming and simple sales process. The use of this selective distribution channel will enable the various car manufacturers to meet the new customer requirements. For instance, the distribution strategy will enable Mercedes to identify and distinguish soft-offer packages to individual customers, especially for customers of Mercedes "A" class. On the contrary, the strategy will enable Ford's product line to abandon the supply-push philosophy that has forced the firms to fill the factories in attempts to cover high fixed costs. In return, Ford will be able to achieve superiority in the channel-oriented customer service through avoiding mistakes and developing best practices in customer care.

Distribution Strategy for Canned Soups:

In light of the recent economic changes and challenges, the canned/preserved food industry is expected to experience tremendous changes. This is primarily because consumers are lessening the number of trips they make to retail outlets as they increasingly prefer to buy products in bulk or once. The main reason or idea behind the reduced trips by consumers is the fact that lesser trips would lead to lesser opportunities to spend money. As a result, there is an expected increase in the sale of canned/preserved food because it is cheap and has a long shelf life. However, the industry is also likely to experience a decline in sales as economic recovery will make for consumers regain their confidence in spending. Actually, during periods of economic recovery, customers are likely to get back to more expensive alternatives, which result in decline in sales of canned/preserved food ("Canned/Preserved Food in the U.S.," 2011).

Nonetheless, the canned/preserved food, especially canned soups are more likely to attract huge sales because consumers are increasingly focusing on more unique flavors and health and wellness elements. Therefore, as the product makers incorporate these elements in their manufacturing processes, there is need to adopt appropriate distribution strategy to increase sales. The most suitable distribution strategy is Intensive Distribution that is commonly used for impulse purchase or low-priced products.

The Intensive Distribution strategy is appropriate for canned soups since it involves direct marketing initiatives, which help in providing feedback to manufacturers. Furthermore, this strategy is suitable for the industry because canned soups are impulse purchase products that customers are likely to choose. In order to keep the consumers engaged and indulged, the manufacturers of canned soups need to offer bolder flavors, fun textures, and unusual flavor mixtures. The Intensive Distribution strategy is also appropriate for canned soups since it enables the firms to introduce new flavors and get customers to try these new flavors. This is mainly achieved through provision of sample products since the strategy involves direct marketing initiatives. For Campbell Soup Company, the intensive distribution strategy could be effective to market some of its major brands like Campbell's Tomato Soup and Campbell's Healthy Request Soups, which are new flavors that incorporate health and wellness elements. The firm should use the distribution strategy to help introduce these flavors and get consumers to try the new health flavors.

Intensive Distribution v. Selective Distribution:

The intensive and selective distribution strategies have some differences that make them suitable for different products. As evident in this analysis, the main difference between them is that intensive distribution is appropriate for impulse purchase or low-priced products while selective distribution is appropriate for products that customers are willing to shop around for and manufacturers require large geographical spread ("Marketing Mix: Place," n.d.). However, the similarity between the two distribution strategies is that they are geared towards providing products and/or services to the end user.