Unit 29 P2 P2: Describe the process of distributing goods through different channels from the manufacturer to the customer Introduction In this assignment I am going to write about the distribution process through different channels and I will make comparisons between a small independent retailer and a large multiple retailers. ‘Distribution in Retailing’ Distribution is about making sure companies check the availabilities of products in a timely and a cost effective manner. The companies have to ensure they have the correct quantities of products for each order they receive as they can’t let their customers down. There are many different ways in which products reach from the manufacturer to the retailer and one of the ways is to undertake retail distribution and bypassing the intermediary retailer, by doing so the companies will earn higher profits. Another way we can class intermediary retailer is a wholesaler and an example of a wholesaler business is metro cash and carry.
The manufacturer realizes that the channels will differ in terms of length and channel membership. Task: A. Discuss the importance of choosing appropriate channel members. An important aspect of choosing appropriate channel members is that the distribution channel is efficient. A distribution channel (or marketing channel) is the process of getting goods and/or services from the manufacturer to the consumer.
They would do this to make sure that they have enough to sell onto retailers. They would keep a large amount of the product, for example some kind of confectionary, in there warehouse so they’re in a suitable environment to be kept until they’re sold on. Next, the retailer, who could be a small store or a larger store, who would want to purchase a specific amount of products from the wholesalers, not in as bulk form as the wholesaler would have purchased them in. This method would typically be used by used by smaller, more personal stores, that don’t need to buy in such bulk. This channel is effective for confectionary products for example, as Costco can get sweets such as Dairy Milk bars, or Skittles, at an incredibly low price for huge boxes.
The product is anything that is up for purchase buy a customer. The attribute for the product would be a Product Number, Product Name The PROMOTION will be linked to the customers since they are they ones that will be redeeming or considering a purchase based on a companies promotional sale or coupon. The attribute would be a Promotion code The SERVICE will also be linked to the Transaction and the Customer since the service will be purchased by the customer. The attribute would be the Service number The TRANSACTION will be linked to the Customer, as they are the ones that
This is needed in order to understand the order that is placed by the customer, contacting vendors, monitoring shipping from the vendor, shipping account for accuracy, billing the customer at the end of the service, and ensuring the vendor is paid for the product they shipped to the eBAGS customer. The task type is non-routine as each order is different. The online system is general-purpose equipment as it is used to order, track, and return items. If eBAGS wants to expand its products to footwear, they need to continue the batch flow process since it has been such as success for the company. They will need to use their strengths in marketing and merchandising and provide one stop shopping for the consumers.
Activity 1 Answer In order for organization to be successful, it needs to be customer driven both internally and externally. Before products and services are developed and designed the organization needs to derive, who their customers are. Customer perception will drive what is produced and sold and the profitability of the organization. To assess the customers’ needs and expectations the following steps will need to be addressed. Identify your customers’ needs and expectations of your products.
Costing the activity is normally an in-between step in the distribution of overhead costs to products, to acquire more precise product cost information. However, occasionally the activity itself is the cost object of interest. Like for example, manager of a company might desire to know how much the company spends to acquire their raw materials, as input in a sourcing judgment. The activity of acquiring the raw materials incurs costs associated with negotiating prices with suppliers, issuing purchase orders, receiving fabric, inspecting fabric, and processing payments and returns. The steps to product costing are: 1) Identify the cost;
This act means the company has the right to sell their products and services. This means when items are being sold by their description for example buying a product from ebay and how they describe the product they are selling has to be accurate otherwise the sales of goods act would have been broken and the person selling the item could be prosecuted. This act also includes sampels when the customer is shown or try samples of their products the product on the shelfs has to be the same as the customers has tested/tried. Examples of buisnesses that have been affected by sales of goods act 1979- 1. The company has been affected in a good way because this act allows the company to have the right to sell their products and services.
Selling – your businesses success or failure will rely on its ability to sell its goods/services. Even though you might have a brilliant idea the 4 p’s will need to be adopted offering the right product, at the right price, in the right place and promoted in such a way that the customer is persuaded to buy, which leads to the question do you have the ability to sell your idea or a partner who does? Management – these will be much more important once you get to a stage when you start to take on employees and an organisation structure starts to develop. There will be a need to communicate your ideas as well as co-ordinate the different functions, listen to feedback from colleagues, set targets and monitor progress. How will you do this?
the retailers would guess what the customer would prefer and how many they would request and then order accordingly and usually this meant either overestimation which lead to unsold stock and subsequently loss, or underestimation which meant loss of potential profit. Crocs managed to develop a supply chain system that avoids these deficiencies by establishing a system that responded to customer needs on real time basis. This system allowed the retailers to place smaller orders and order more when needed, hence Crocs supply chain was able to manufacture the required product during the season and ship it quickly to the retailers. This ability enhanced Crocs relations with the retailers and allowed them to gain competitive edge over their competitors, especially that their products were differentiated by their functionality and new style. Crocs also marketed its products through having agreements with colleges and universities and through targeting healthcare and food industry workers which helped to prolong its products trends.