ProposedDistribution Strategy for Neechie Gear
ProposedDistribution Strategy for Neechie Gear
Businesssuccess in the market is determined by numerous factors. One of themajor factors is the distribution strategy deployed by themanagement. There are numerous distribution channels that can bedeployed by any given organization or business entity however, thisdepends on the objectives of the business in the market as well asthe primary target market. This paper looks into the distributionstrategy of the Neechie gear of Kendal business.
Objectives(SMART) of the ProposedDistribution Strategy
Thekey objective of the proposed distribution channel
Product availability, the proposed distribution channel should target to make the products available to the target group.
It should meet the customer’s product/service requirement
It should give promotional support to the firm`s product
The channel should give market information about the product and the target market such as sales trend, competitor’s moves, as well as a customer’s response towards the product.
Flexibility, the channel should be easy for the business to change the distribution structure, add new middlemen without causing any conflict.
Kendalproposed distribution channel
Theconsumers are the end target for any of the distribution channelsthat may be implemented by Kendal, however, the channel used shouldbe affordable for the business, i.e. shouldn’t be a financialstrain to the business. The demand for the products among the productconsumers in the target regions has led to the review of the businessdistribution channel. At the moment, Kendal, is using thedistribution channels which are,Producer–Retailer—Consumer.However, with the increased demand for the product the proposedupgrade for the distribution channel is inevitable. For the business,the proposed channel is a multi channeled one which includes otherintermediaries. The proposed distribution for Kendal isProducer–Wholesaler–Retailer–Consumer. The proposed distribution channel makes Kendal a retailer as well asa distributor concurrently. This will help the business, manage itsproduct as well as mange its distribution to other stores in thetarget regions (Kapur et al, 2014).
Benefitsof proposed distribution channel
Theproposed distribution channel has numerous advantages to thebusiness. One is that, it helps to reach a wider area of the proposedmarket. The proposed channel will allow Kendal to supply the productto numerous other stores hence reaching a bigger customer base aswell as having numerous sources for customer’s feedback, which isan important aspect in keeping the customer satisfied. This wouldenable Kendal maintain the customer relation as expected for hisbusiness. In addition, it would allow for instant customer feedbackthat is essential in improving the customer satisfaction with thegoods produced or distributed to them (Kapur et al, 2014). Finally,the proposed channel will help in building the business’s customerloyalty.
Risksassociated with additional channels
Despitethe proposed distribution channel to the Kendal enterprise, there arerisks associated with this. Adoption of numerous channels may bringalong conflict within the different adopted distribution channels.Moreover, the adoption of different distribution poses a risk offailure to maintain strong distribution relations. Differentdistribution channel may become overwhelming for Kendal, where thereis no intention to add the number of stores, but rather distributestheir product to the already established stores (Xia et al, 2013).
Thebusiness location will be a key factor in determining the effectivedistribution plan to be implemented. With the customers located allover the country, a plan is needed, that would be effective todeliver the company’s product to all regions. In addition, theKendal did not intend to open a new store, but instead can use thealready established stores and supermarkets to sell their products.The additional stores, which acts as the retailer and in turnconnects the main supplier with the customers in the targeted region(Shang et al, 2009).
Inorder to improve the current conditions of the Neechie Gear’sstores, as well as the target market, the following recommendationscan be implemented
Establishment of a customer care platform, this would enable Kendal to receive all the customer’s needs and in turn incorporate into improving the business performance. This would enable the seller to know more about the target as well as the customer requirements, which are essential in making the distribution channel effective.
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