After products have been manufactured, they should be distributed to increase sales. This is an important element in the marketing cycle for a business to be complete. Products are either distributed by the manufacturer himself or a third party is involved to make sure the products reach the consumers at the right time. Effective distribution has been a challenge to many companies especially those who involve third party distributors. Most distributors may have orders that are not static. This is because of consumer demand. For example during the middle of the month, income rates are usually low. People demand less of luxurious commodities and seek more of necessities. This means that, those distributing luxurious commodities will get fewer orders from the major distributors and may affect the sales of the main producer. In order to retain customers retailers have used variety of ways to distribute their products. These include the traditional methods of distribution or through e- commerce, which involves buying online, and waiting for the product to be delivered on the doorstep. Various technologies have tried to make distribution easier. An ecommerce has been one of the ways used.
Anheuser-Busch has successfully managed to improve his beer distributions effectively throughout Chicago. Distribution of alcohol has been a major concern in Chicago for some period. This issue started when there was a misunderstanding between Busch and the Illinois regarding Liquor Control (Sachdev 2012, para.2). For a long period, Anheuser-Busch Cos. has been manufacturing liquor but had no control over its shares. The Illinois Liquor Control Commission granted Anheuser-Busch the opportunity to have control over some shares and take ownership of stake in one of the largest distributors of beer in Chicago (Sachdev 2012, para.). The ideology behind this decision was to allow Anheuser-Busch to manifest itself and increase its sales through various distribution opportunities. When Anheuser-Busch was granted this opportunity, it decided to enhance its distribution to an international level. It was in 2010, that Anheuser-Busch decided to tell Illinois regulators that it was interested in buying City beverage. This company was enormous with four distribution operations located in various parts of Chicago.
Considering such an opportunity given to Anheuser-Busch there are lessons learnt on how to distribute products effectively at all degrees. There are numerous elements to consider on how to increase sales through production. Anheuser-Busch decided to encourage his entrepreneurs to undertake a multichannel approach in distributing alcohol to various outlets. This involved this includes using third party intermediaries as described before in undertaking the distribution procedure. In addition, the use of franchised stores is equally important as they can store the excessive amounts of bottles that may be in the warehouse and have not been distributed. Opening of offices next to the wholesalers and retailers also help them to make orders much easier and in the end, the main company may be in a position to monitor the stalk sales of their regular distributors.
It is equally important to understand the nature of demand of the product being distributed. There are some cultures that do not appreciate alcohol in their midst. There are situations that also force people to take alcohol. For example during parties, many people drink alcohol a lot for fun. Therefore, the distributors should consider such situations to undertake their orders. This will increase their sales. Apart from the traditional ways of distribution of products, technology has also enhanced the mode of distribution. E- Commerce has been used by many companies to promote their sales. This concept involves putting products online and getting orders from retailers who cannot make it to the main source. Such an idea helps the producer to know where their products are needed most and how to deliver them on time. This also makes the consumer to trust the producer with his products especially if they are of good quality.
Production distribution also considers strategies of selecting a distribution channel. This is a vital role in determining the best way of distribution purposes. In order to select a distribution channel there are certain factors to be considered this includes market, consumer, producer and competition. Most consumers do not like going to the market or shops to purchase certain products. For example, many people may not like going to buy liquor personally especially if they are busy but want to have a stress free time. Consumer behavior has changed a lot due to technology. Therefore, for a company to increase sales, though door-to-door delivery as most consumers prefer it that way.
Consumer choice as a strategy to consider while determining product distribution is also necessary. A consumer is the most important factor to consider while determining distribution purposes. People have different tastes and preferences when comes to products consumption. For example, a community that has many youth will attract certain products. These include latest clothes and shoes that are in fashion. The 21 century compromises of a generation that believes in having fun among the youth. Therefore, companies will consider such factors to enhance their sales.
There are situations when people want luxurious products. This is determined by the nature of income one gets. However, these products will require a distribution channel that will enhance their sales. For example, products like cars are expensive. Therefore, a producer will look for a distribution channel that is popular among the people and can easily win the trust of the people. This is when marketers who act as distributors are considered. Such intermediaries help in convincing the consumers to buy these products at all times of the year and in the end the manufacturer will manage to make proper distributions and increase revenues. In addition, other products are usually perishable. This means that the producer must look for quicker channels for distributing its products to avoid going at aloes if the products go bad. Therefore, fishermen, usually fish when they are sure of the number of orders that are in place. The distributors also make sure that they consider the weather patterns and type of roads they use for transportation purposes.
In other situations, some producers produce a variety of products to make more profits. In such situations, the producers will always look for short distribution channels to avoid excessive costs. When these manufactures supply their products, they will consider distributors who engage themselves in supplying a variety of products and most especially in large quantities to smaller retailers. The ideology behind this principle is to cut costs of distribution while the company makes its profits. Companies in this category are the once who participate mostly in E- Commerce as it helps them to know of ready consumers and the much they need to produce without undergoing loses.
Finally, competition is a vital strategy that determines nature of distribution of different products. Producers usually have one aim in common to make profits. That is why the choice of distribution channel that is effective for competition purposes. Inefficiency can make a consumer lose trust of consumers. When a distributor does not meet time limits given, it means that the consumer may lose interest in the products and definitely, it means that the company will lose its customers. Concisely it is highly important for an organization to show how important the consumers are so that they may manage to be above their competitors.
In conclusion, product distribution has been a stressing issue between manufacturer distributors and consumers. The producers should come to an understanding to help the efficiency work out for them. In addition, the need to carry out a training program to incorporate skills that may help in distribution of products is vital. Through this training, the distributors will learn how to manage time, determine their key consumers and help in competing with other compelling producers. The distributors can also share their sales structure so with their main producers. This will help the producer to determine the nature of order that the producers can set aside for every third party distributors. This will also lessen expenses that may be incurred if some supplies are not met in time. Time consideration is important, as it will help winning the trust of the suppliers. If all this are considered then the proper distribution will be enhanced all the time and the producers will get their profits are expected
Reference.
Sachdev, A. (2012). Anheuser-Busch to keep stake in beer distributor. Retrieved November 6, 2012, from
http://articles.chicagotribune.com/2012-10-31/business/chi-ruling-in-anheuserbusch-beer-distribution-case-20121031_1_anheuser-busch-cos-beer-maker-city-beverage
