Wednesday, November 30, 2011

Dstribution

There are three types of distribution: exclusive, selective and intensive.

"Exclusive distribution is often found in the distribution of luxury brands and brands."


( Marketing: An Introduction for Education Management Corporation, 10th Edition. Pearson Learning Solutions pp. 324).


"Selective distribution is the use of more than one, but fewer than all, of the intermediaries who are willing to carry the company’s products."


( Marketing: An Introduction for Education Management Corporation, 10th Edition. Pearson Learning Solutions pp. 324).

"Intensive distribution is stocking the product in as many outlets as possible." 


( Marketing: An Introduction for Education Management Corporation, 10th Edition. Pearson Learning Solutions pp. 324).


You need to take in mind what kind of product you're selling and which way would be the best way to distribute it. I think the distribution approach I will take with Blüme is the selective distribution. I am only selling the product in four states: Nevada, California, New York and Florida. I feel like these states have the most popular, luxurious cities; such as Las Vegas, New York City, Miami, Los Angeles etc. Blüme represents class, glamour, luxury, style and taste; which is what I believe these cities accomplish as well. Within that, I want Blüme to only be sold in hotel/casino liquor stores. These cities are known for nice hotels, rich tourists, gambling casino's and of course, alcohol. The liquor stores in hotel/casino's are convenient and have the best selection of high quality drinks. What I also like about selective distribution is that I will be able to have more control over my product, how it is doing and what I need to fix. Rather than doing an intensive distribution where it's all over the place and hard to keep track of.

"Whirlpool and General Electric sell their major appliances through dealer networks and selected large retailers. By using selective distribution, they can develop good working relationships with selected channel members and expect a better-than-average selling effort. Selective distribution gives producers good market coverage with more control and less cost than does intensive distribution."


( Marketing: An Introduction for Education Management Corporation, 10th Edition. Pearson Learning Solutions pp. 324).

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