Section Four: Distribution Strategy

Distribution Strategy

In order to develop a good distribution strategy, these factors should be considered:

Product Distribution

Your analysis of your market will help you to determine the most appropriate method for distributing your product or service to the target market which you have identified.

Your channel of distribution may involve the following:

  • Manufacturers’ representatives
  • Agents or brokers
  • Dealers
  • Associations
  • Buyers
  • Retail outlets
  • Direct sales to consumers

Materials Handling

Design a system for materials handling that takes into account warehousing or storage needs for products, packaging, labelling and bar coding if necessary.

Processing of Orders

Establish a system for processing orders including forms for job estimates, if appropriate, and purchase order forms.

Delivery of Products and Services

Determine your method of transportation for delivery of products and services. Ensure that you have reliable resources with a backup plan in place in case of emergency.

Distribution Channel

Prepare a flowchart for your channel of distribution outlining key transactions which occur in the process.

Your flowchart should identify the location for all transactions and the name of each contact person at each critical point.

Time

Complete your flowchart by indicating the time involved for each component of your distribution strategy.

Relationships

Ensure that solid relationships are nurtured with all people involved in the distribution process. These relationships will have an impact on the successful delivery and sales of your products.

Click on Worksheet 4.8 to complete your distribution plans.

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