Alternative distribution channels in the paint

Further, one auto parts store owned by a woman ran an advertising campaign aimed at women, acknowledging that women were often being asked by their husbands and boyfriends to be "parts runners. The objectives of this step are to get formal agreement on a distribution channel strategy, and commitment to all the implementation actions.

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Firms may be able to close, or reduce, their gaps by reconsidering their offerings. More in the "gray" area, it may or may not be appropriate to sell microcomputers directly to consumers rather than going through a distributor—the costs of providing those costs may be roughly comparable to the margin that a distributor would take.

Marketing strategy of berger paints

Thus, performance level service outputs and costs should be evaluated. Similarly, it may be useful to give away, or sell at low prices, certain premiums e. Some products—especially high tech products—have a very high effective carrying costs. It almost guarantees profitable growth for the decade to come. Again, it is important to emphasize the need for market balance. Ironically, however, what frequently happens is that "room" now opens up for a "bare bones" chain to come in and fill the void that the original store was supposed to have filled! Distribution Intensity Decisions We have seen distribution intensity issues throughout the course, so here we will mostly consider overall strategic issues related to these decisions. To get others involved in spreading the word, the product usually must be interesting and unique. Cost has to be traded off against speed of delivery and intensity it is much more expensive to have a product available in convenience stores than in supermarkets, for example. Cost control is essential in every part of the supply chain to enable the paintmaker to make profits while competing on price. The paint company must understand the demographic factors that drive store sales, and the type of location favored by the subsegments of the contractor market that they will target.

We were able to measure the contributions from formulation, manufacturing cost, pricing and purchasing. Viral marketing is more suitable for some products than for others.

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They direct sales effort to the right accounts, set appropriate freight policies, get good mileage from every promotional or advertising dollar, and above all avoid weak customers and the associated failure costs. For example, Hotmail attaches a message to every e-mail sent from its service alerting the recipient that a free e-mail account can be had there. This is not as simple task as it may sound up front. Dealers make this difficult by being conservative. Firms like Wal-Mart have invested greatly in information technology and logistics and have committed to taking a risk on placing large orders placed well in advance of the need. Online promotions. These erratic demands are driven by their internal inventory management systems and by promotions. Alternatively, existing channels may be reassessed—e. Link optimization. Service requirements differ by product category. It has been found that offering lower everyday prices requires a very large increase in sales volume to be profitable.

Every company needs to assess its own position and determine the unique strategy that suits it best. Therefore, an opportunity might exist for someone to offer better service at a not much higher cost.

Channel Structure and Membership Issues Paths to the customer.

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Dealers make this difficult by being conservative. Since not all retailers are willing to provide these services, insisting on them will likely reduce the intensity of distribution given to the product. As more and more products compete for space in supermarkets, retailers have gained an increasing power to determine what is "in" and what is "out. Maintaining channel member performance. For example, Henry Ford wanted to make all the components for his own cars, so Ford tried to run its own rubber plantation with limited success. With the tobacco industry currently being relatively profitable but having a questionable future, a tobacco firm might invest in a software maker. To an extent, those results have been achieved by pursuing definite distribution strategies and developing the necessary core competencies. It has been found that offering lower everyday prices requires a very large increase in sales volume to be profitable. It almost guarantees profitable growth for the decade to come.

To measure the potential of a particular strategy, for example, developing a dealer network in outlying towns or establishing stores in a particular metropolitan market, an OE sheet should be developed for every major customer or potential location included in the strategy.

Rapid economic growth has made high service retailers more attractive to a growing number of affluent consumers, and less affluent consumers have become more accustomed to intense price competition between different retailers. Stores need to maximize their profits and must consider their margins to do so.

However, for sewing machines, consumers will expect to travel at least to a department or discount store, and premium brands may have more credibility if they are carried only in full service specialty stores.

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Channel Strategy for Architectural Paint in the New Century