Developing a Strategy for Distribution Channel Management Term Paper

Pages: 3 (920 words)  ·  Bibliography Sources: 0  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business - Advertising

Management

Distribution channel management

Toys are amazing products, responsible for better learning and grooming of young ones. Advantages of a utility if exceeds the economical constraints will surely be purchased and bargained over. However it's important to depict toy as a utility for an infant or young ones. The market of toys can never be build unless the consumers are turned aware about its utilities, accessibility, applications and benefits. it's not important to turn a toy item brighter for sake of consumer's acknowledgement, rather the manufacturer and the retailer should emphasize over the effectiveness, durability of the toy products.

The question then raises that, shall the market be approached directly by the big market giants, who in collaboration with the manufacturers publicize and market the product. By restricting your network within big giants the product might turn out to be commercialized utility however it accessibility is hampered significantly. The monopoly that big market giants undergo adversely affects the prospects of manufacturers. Therefore the role of market tycoons must be significantly subdued. When it comes to the accessibility of the product, it's the local retailers who can contribute towards the positive trend of market sales by ensuring the people at local level are aware, familiar about the toy product.

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Under current scenario where the toy manufacturers are under threat of low sales, not because of their worst product quality, but because of their heavy dependence upon the market giant i.e. Wal-Mart and Toys-R-Us. Both the companies tried to influence and dominate their respective shares by offering lucrative deals over the toy products and compromising over the profit rates, thereby affecting the production as a whole. The logical review of the situation can be generalized as; the marketing campaign is always launched by manufacturers and if the market dealers join-in and penetrate, the share of product within the giants gets distorted, and equilibrium is lost.

Term Paper on Developing a Strategy for Distribution Channel Management Assignment

Under this troublesome situation that is never hypothesized by the manufacturers the toy brand loses credibility and market share. The best fit solution lies in forging normalized relation with the overall market than with only the front runners. The manufactures should therefore broaden its geographical and logistical network. The most importantly it should immediately forge a deal with local retailers regarding products distribution, sales and at the same time should develop an understanding regarding profit percentage. Of course the manufacturer can offer subsidized rate of profit to the local retailers. For such retailers, capturing new manufacturer is itself a huge jump over the heap.

Under such scenario where the manufacturer is immune to many concerns. However if the brand or product is well advertised, produced in the right proportions of quantity and quality, shipment in time, rate of return closer to estimated value can bring major break… [END OF PREVIEW] . . . READ MORE

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"Developing a Strategy for Distribution Channel Management."  Essaytown.com.  October 16, 2006.  Accessed January 19, 2021.
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