Direct distribution Key factors

Direct distribution involves selling products directly to consumers without intermediaries. 1. Store Name
Advantages: 2. Exterior/Interior Image
Control: Companies have direct control over the sales process. 3. Store Type: Use the classification that best fits, with specific options.

EVALUATION
Higher Margins: Eliminates middlemen, leading to better profit margins.
4. Product Categories Sold: This is useful to ensure that these outlets sell products similar to yours.
Disadvantages:
Resource-Intensive: Requires investment in logistics, marketing, and customer service. 5. GPS Location: Make sure the accuracy is within 10 meters.
Limited Reach: Only reaches specific target markets. 6. Store Owner’s Contact Information: Email address, phone number, name.
Variable costs: 7. Store Attendant’s Contact Information: Email address, phone number, name.
-Cost of Goods or Raw Materials: This is the direct cost associated with the production or purchase of the products being distributed.
8. Unique Identifier: This can be an agent code or a specific number from your company to use as a
-Sales Commissions: If a commission is paid based on sales, this would be a variable cost.
-Shipping Expenses: Depending on the volume of distributed products, shipping costs can vary. primary key.
-Packaging Costs: If products need to be packaged in a certain way for distribution, this can vary based on the quantity distributed.

Fixed costs:
Lease or rental of facilities: This is a fixed cost that does not vary according to the quantity of distributed products.
Employee salaries: Permanent employee salaries do not change according to sales or production. Time postponement
Insurance costs: These may include liability insurance, property insurance, etc.
Depreciation costs: For example, the depreciation of distribution equipment such as delivery vehicles.

Time postponement is when customization is delayed

as long as possible. The products are then shipped
out to a centralized distribution center where they
Indirect distribution can be quickly distributed to customers.
Indirect distribution means enlisting a distributor to get your products to a retailer, who can sell on your behalf. As your
business grows, this option may be more efficient and effective.
Advantages:
Pros: Distribution agents specialize in getting products into as many markets as possible, and retailers know their
local markets and how best to sell your product there.
Share shipping and storage costs
Make it easier for customers to find your products DIRECT AND Outsourcing strategies
DIEMNSION AND LOCATION OF
3
Disadvantages:
Distribution agents and retailers will share in your profits, and retailers may sell your competitors’ products
INDITRECT
alongside yours.
The main challenge with indirect distribution is the distance it puts between you and your customers. By adding an THE POINTS OF SALE 1. Clearly Define Objectives and Expectations:
intermediary, you are also increasing the amount of time it takes for your product to reach the buyer.
DISTRIBUTION Before embarking on an outsourcing journey, define clear objectives. Determine whether you aim
for cost savings, improved quality, or increased efficiency1.
Variable costs: 2. Leverage Specialized Expertise:
-Advertising and Promotion Costs: These costs are related to promoting the product. They include expenses for
Outsourcing allows access to external vendors with specialized skills and domain expertise.
Push strategies
market research, salaries of workers involved in promotion, samples distributed during promotions, and
advertising costs1. Consider outsourcing tasks related to store setup, inventory management, or local market
-Transportation Costs: Transportation costs vary based on the quantity of distributed products and the distance insights2.
traveled. They can include transportation from the manufacturer to intermediaries and, ultimately, to the
customer1. 3. Geographic Considerations:
-Storage Costs: These costs fluctuate based on the volume of stored products. They encompass expenses such as The push strategy involves actively promoting products Evaluate the geographic location of outsourced services. Consider proximity to your points of sale.
rent for storage spaces, maintenance, and security for stored goods
Fixed costs:
Insurance Costs: These are expenses incurred to protect against risks such as property damage, liability, etc.
directly to customers. In this approach, companies use
various marketing techniques like advertising, personal
IDEA EFICIENTE Choose vendors who understand local nuances, regulations, and customer preferences3.
4. Risk Mitigation:

4
Amortization of Equipment and Technology: These are the costs associated with the depreciation of distribution
selling, and sales promotions to push their products Lorem ipsum dolor sit amet consectetur Diversify outsourcing partners to reduce risks associated with geopolitical uncertainties or
equipment, such as vehicles, computer systems, management software, etc.
Indirect Marketing and Advertising Expenses: While advertising and marketing costs can vary, fixed costs may onto the market. The primary goal is to reach out to adipiscing elit, orci eu integer logistics disruptions.
include long-term marketing activities, such as website maintenance or subscription services.
General and Administrative Expenses: This category encompasses various other indirect administrative costs,
potential customers through awareness and generation ullamcorper urna libero volutpat, Consider multiple vendors for critical functions like distribution, maintenance, or security2.
such as office supplies, legal expenses, etc of demand. commodo conubia ad blandit dis magna.

Market coverage strategies

B
Intensive Distribution: In this strategy, a company sells its product
Push strategies
through as many channels as possible. The goal is to maximize
exposure and reach the largest number of potential customers.
On the other hand, the pull strategy focuses on
Selective Distribution: Here, a company chooses to sell its product creating demand by attracting customers to the
only through specific channels. The aim is to target a specific market product. Instead of pushing products onto the market,
segment or enter a particular market. companies using a pull strategy aim to build brand

Exclusive Distribution: In this strategy, a company grants an

exclusive right to a distributor to sell its product in a specific area.
loyalty and create a desire for their offerings among
consumers. B
The goal is to maintain total control over how the product is sold.