Wednesday, November 30, 2011

Distribution

"Between intensive and exclusive distribution lies selective distribution—the use of more than one, but fewer than all, of the intermediaries who are willing to carry a company’s products. Most television, furniture, and home appliance brands are distributed in this manner. For example, Whirlpool and General Electric sell their major appliances through dealer networks and selected large retailers. By using selective distribution, they can develop good working relationships with selected channel members and expect a better-than-average selling effort. Selective distribution gives producers good market coverage with more control and less cost than does intensive distribution."-Kotler, Gary Armstrong and Philip. Marketing:
Distribution is very important because this how we will get the product to the customer. We want to have our products made by us only. The only thing that will not come from us is the water that we receive from Iceland. We want to be a company that distributes all of our products.
“Companies often pay too little attention to their distribution channels, sometimes with damaging results. In contrast, many companies have used imaginative distribution systems to gain a competitive advantage.” Kotler, Gary Armstrong and Philip."
The Islands wants its product in Liquor stores, and grocery stores that sell premium vodka. We want to have our brand in location where it can reach our potential buyers but also at a convenience to them as well.

"By contrast, some producers purposely limit the number of intermediaries handling their products. The extreme form of this practice is exclusive distribution, in which the producer gives only a limited number of dealers the exclusive right to distribute its products in their territories. Exclusive distribution is often found in the distribution of luxury brands and brands. For example, exclusive Rolex watches are typically sold by only a handful of authorized dealers in any given market area. By granting exclusive distribution, Rolex gains stronger dealer selling support and more control over dealer prices, promotion, and services. Exclusive distribution also enhances the brand’s image and allows for higher markups."-Kotler, Gary Armstrong and Philip. Marketing:

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