Distribution Decisions

Most producers do not sell their goods directly to final users. They design a multi-channel system to reach them. The design of marketing channel, that acts, as a strong interface, can provide competitive advantage to a firm in the industry. By contrast the absence of a good distribution network can also be a major fiasco in today’s cutthroat competitive world. Marketing channel decisions are the most critical ones facing the marketing management today. It is complex and the complexity further gets compounded by the fact that the channel system take time to build usually years. Channel partners are not owned by the company in most cases. The sales force plays a crucial role in getting the best out of marketing channel. Integrating the efforts of channel partners and sales efforts within the whole marketing effort becomes crucial towards achieving organizational goals.

A distribution channel is established for any product to reach the consumer from the seller.

There are different types of distribution

Channel 1 contains two stages between producer and consumer - a wholesaler and a retailer. A wholesaler typically buys and stores large quantities of several producers’ goods and then breaks into bulk deliveries to supply retailers with smaller quantities. For small retailers with limited order quantities, the use of wholesalers makes economic sense. 

Channel 2 contains one intermediary. In consumer markets, this is typically a retailer. The consumer electrical goods market in the UK is typical of this arrangement whereby producers such as Sony, Panasonic, Canon etc. sell their goods directly to large retailers such as Comet, Tesco and Amazon which then sell onto the final consumers.

Channel 3 is called a "direct-marketing" channel, since it has no intermediary levels. In this case the manufacturer sells directly to customers. An example of a direct marketing channel would be a factory outlet store. Many holiday companies also market direct to consumers, bypassing a traditional retail intermediary - the travel agent.

DISTRIBUTION OF BINGO

ITC already has a well-established distribution channels through its Cigarette and Tobacco offerings. This leverage to the distribution of Bingo. The company distributed 4 lakh racks across all the retailers to display the brand at point of sale. It has a crucial alliance with future group in stocking only ITC Bingo in its outlets like Big Bazar, Food Bazar. All HORECA and local betel shops are all used to distribute Bingo to a wide range of customers.

Viral Marketing: ITC Bingo is known for its adaptation of different ad strategy. They have developed a new viral development by contests2win. It’s in the essence a spoof on a long winding saas bahu soap on tv.