Distribution

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Although Cadbury is not so extensively in FMCG, they are able to make the product available in the

extreme regions – Urban as well as rural areas but they focus more on urban markets due to the
demand economics. Products are being made available through the C&F to wholesaler to retailer & then
to the end customer, which is actually a 3-tier distribution approach. Distribution and brand equity are
two major competitive advantages for Cadbury. Cadbury is making its product available from pops &
moms store to high end departmental stores, which is only possible due to its extensive distribution
channel creating competitive edge over others.

Going back to the days when it was difficult to find resellers to carry Apple products, Apple created
its own distribution channels with Apple Stores. Additionally, because of the popularity of Apple
products, many other resellers such as the mobile phone service providers (ATT, Verizon, Sprint, and
others) and big box retailers such as Best Buy, Target, and Wall-Mart were eager to carry them. And
makers of automobiles and other products have made them compatible with iPods and iPhones.
Distribution strategies are a major key to success, which are maximizingsales and profits. Apple is
utilizing from distribution strategies by using multiple channels,especially including direct or semi-direct
sales and different distribution channels for differentproducts. By pursuing this strategy, Apple increases
its market coverage, lowers channel costand provides more customized selling.Apple has 301 retail
stores in ten countries and online stores serving to 36countries where hardware and software products
are sold. Moreover, it has 3000 retailersand 320 large distributions. Apple has been slowly adding other
distribution channels withhigh sales volume. Selective distribution revealed itself at this point. 

Herbalife uses `network marketing' as a way to describe its marketing and sales programs as
opposed to multi-level marketing,' according to the company's 1995 annual report, 'because multi-level
marketing has had a negative connotation in certain countries in which Herbalife does business.'
Nevertheless, Herbalife's distribution network closely resembles the typical multilevel
marketingapproach--sometimes referred to as a pyramid scheme--and has been accused of crossing the
line into the illegal endless-chain marketing. Multilevel marketing remains legal in most states in the
United States, with the condition that the company's sales force of distributors actually receives
earnings by selling products to people not related to the company. In an illegal endless-chain scheme,
earnings are achieved primarily through recruiting new salespeople into the pyramid.In the Herbalife
network marketing plan, potential distributors buy into the network by purchasing Herbalife products,
generally at a 25 percent discount off the retail price, which they may then in turn sell to others. Once
they place orders above a certain amount--ranging from $2,000 to $4,000--a distributor may become
supervisor, at which point they receive a 50 percent discount on Herbalife products. Distributors also
become supervisors by recruiting new distributors into the network. They then receive a percentage of
each recruit's sales--usually about 8 percent. As supervisors rise higher in the pyramid, their earnings
have the potential of rising dramatically, depending on the number of supervisors below them.

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