Marketing Project

Topic: Channel of distribution

Name of the student: Nadir Ali Sheikh

Class: 12 COM H
Board Exam Roll Number:
Teacher in charge: Mrs. Srijaya
Internal Examiner:
External Examiner:
 Bonafide Certificate

This is to certify that Nadir Ali Sheikh of Class 12 Com H.

Has completed his Marketing project under my supervision. He has taken proper
care and shown utmost sincerity in completing it.
I certify that this project is up to my supervision and as per the guidelines issued by
the CBSE.
Teacher in Charge: Mrs. Srijaya
Signature:
Internal Examiner:
External Examiner:
 Acknowledgement

I would like to convey my heart full thanks to Mrs. Srijaya my Marketing teacher
who always gave valuable suggestions, invaluable support, encouragement and
supervision for completion of my project. She helped me to understand and
remember important details of the project. Her moral support and continuous
guidance enabled me to complete my work successfully.
 Methodology

 The methodology used in my project is personal collection of

data.
 Collected all information regarding channel of distribution.
 Different types of channel of distribution.
 Different types of channel intermediaries.
 Index
SR NO TOPIC PAGE NUMBER

1 Introduction

2 Types of channel of
distribution
3 Types of channel
intermediaries
4 Function of intermediaries

5 Distribution Intensity

6 Convenience products

7 Soft drinks

8 Coca-Cola

9 Raw material for soft drinks

10 Channel of distribution done

by Coca-Cola
11 Shopping product

12 Mobile phone

13 Apple

14 Raw material for mobile

phone
15 Channel of distribution done
by Apple
 Introduction to Channels of distribution

Distribution of product is the process of providing the goods and services

from the manufacturer to the final consumer. After the development of the
product the marketing manager has to decide channels or routes. The
product will flow from the factory to the potential customer through them.

Accordingly he may use one or more middlemen including

wholesalers, retailer, and selling agents.
According to Philip Kotler: Distribution includes various activities the
company undertakes to make the products accessible and available to all.
 Types of channel of distribution

There 2 types of channels of distribution:

 Direct channel
 Indirect channel

Direct channel: The producer can sell directly to his customers without the
help of middlemen, such as wholesalers and retailers.

Indirect channel: The producer cannot sell directly to his customer and
need help of middlemen, such as wholesalers and retailers.
 Direct channels
These channels take the shortest route to the consumer. Certain goods,
like the industrial machinery, are directly sold to the consumers. Costly
goods like computers and luxury automobiles, are also directly sold.
Some manufacturers open their own retail shops in many localities and
sell goods directly to consumers. The best example is that of the Bata
Shoe Company Shops. The manufacturers also try to sell through their
own mail order departments.

All these indicate that producers are now taking steps to approach the
consumers directly. Though this is possible for some types of goods, the
fact remains that the services of intermediaries, such as wholesalers and
retailers, are often essential in the distribution of goods to consumers.
Indirect channel
The indirect channels of distribution are:
(i) Producer-Consumer 
(ii) Producer-Retailer-Consumer
(iii) Producer—Wholesaler—Consumer
(iv) Producer-Wholesaler-Retailer-Consumer

The first channel, from the producer to the consumer, is preferable when buyers are few and
the goods are costly and mostly purchased by industrial users. In this category fail such goods
as complex machinery involving high technology, computers and luxury cars. In this case,
buyers can be directly contacted and goods can be sold by direct personal approach.

The second channel, from the producer-retailer to the consumers, is preferable where the
purchasers of goods are big retailers like department stores, chain stores, super markets or
consumer co-operative stores. In these cases, the wholesalers may be by passed because the
bulk of the goods are purchased by these large retail distributors to be sold to the consumers.
Goods like electrical appliances, fans, radios, ready-made garments and a host of other articles
fall in this category. This channel is also suitable when the goods are of a perishable nature,
and quick distribution is essential. However, the manufacturer will have to undertake such
functions as transportation, warehousing and financing.

The third channel, from the producer-wholesaler to the consumer, can be successfully used in
distributing industrial goods. Under industrial goods are included goods which are used for
further production and not for resale. This is a shorter channel, and the producer eliminates
the retailer in this channel link. In this case, the buyers are business houses, government
agencies, consumer co-operative stores, etc.
The fourth channel, from the producer-wholesaler-retailer to the consumer, is the longest
route in the distribution link but is very popular. It is used for the marketing of a variety of
consumer goods of daily use, particularly where the demand is elastic and a large number of
similar products are available. This channel is preferable when the market for the goods is
highly competitive.
 Types of channel intermediaries
 There are four main types of intermediary: agents, wholesalers,
distributors, and retailers.
 A firm may have as many intermediaries in its distribution channel as
it chooses. It can even have no intermediaries at all, if it practices
direct marketing.
 Agents/Brokers
Agents or brokers are individuals or companies that act as an extension of
the manufacturing company. Their main job is to represent the producer to
the final user in selling a product. Thus, while they do not own the product
directly, they take possession of the product in the distribution process.
They make their profits through fees or commissions.
 Wholesaler
Unlike agents, wholesalers take title to the goods and services that they are
intermediaries for. They are independently owned, and they own the
products that they sell. Wholesalers do not work with small numbers of
product: they buy in bulk, and store the products in their own warehouses
and storage places until it is time to resell them. Wholesalers rarely sell to
the final user; rather, they sell the products to other intermediaries such as
retailers, for a higher price than they paid. Thus, they do not operate on a
commission system, as agents do.
 Distributors
Distributors function similarly to wholesalers in that they take
ownership of the product, store it, and sell it off at a profit to
retailers or other intermediaries. However, the key difference is
that distributors ally themselves to complementary products. For
example, distributors of Coca Cola will not distribute Pepsi
products, and vice versa. In this way, they can maintain a closer
relationship with their suppliers than wholesalers do.
 Retailers
Retailers come in a variety of shapes and sizes: from the corner
grocery store, to large chains like Wal-Mart and Target. Whatever
their size, retailers purchase products from market intermediaries
and sell them directly to the end user for a profit. Whenever a
consumer buys a product from anyone other than the company that
makes it, the consumer is dealing with a retailer. This includes
corner stores, shopping malls and e-commerce website. Retailers
may buy directly from the producers or from another intermediary.
In some markets, they may stock items and pay for them only after
they make a sale, which is common for most bookstores today. Any
e-commerce website that's not owned by the company that makes a
product, which it then sells to a consumer, can also be called a
retailer.
 Functions of Intermediaries
 Wholesaler:

1. Purchasing:
Wholesalers purchase very large quantities of goods directly from producers
or from other wholesalers. By purchasing large quantities or volumes,
wholesalers are able to secure significantly lower prices.

2. Warehousing and Transportation:

Once the wholesaler has purchased a mass quantity of goods, it needs to get
them to a place where they can be purchased by consumers. This is a
complex and expensive process. McLane Company operates eighty
distribution centers around the country. Its distribution center in Northfield,
Missouri, is 560,000 square feet big and is outfitted with a state-of-the art
inventory tracking system that allows it to manage the diverse products that
move through the center. It relies on its own vast trucking fleet to handle the
transportation.

3. Grading and Packaging:

Wholesalers buy a very large quantity of goods and then break that quantity
down into smaller lots. The process of breaking large quantities into smaller
lots that will be resold is called bulk breaking. Often this includes physically
sorting, grading, and assembling the goods. Returning to our potato example,
the wholesaler would determine which potatoes are of a size and quality to
sell individually and which are to be packaged for sale in five-pound bags.
4. Risk Bearing:
Wholesalers either take title to the goods they purchase, or they own the
goods they purchase. There are two primary consequences of this, both of
which are both very important to the distribution channel. First, it means
that the wholesaler finances the purchase of the goods and carries the cost
of the goods in inventory until they are sold. Because this is a tremendous
expense, it drives wholesalers to be accurate and efficient in their
purchasing, warehousing, and transportation processes.
Second, wholesalers also bear the risk for the products until they are
delivered. If goods are damaged in transport and cannot be sold, then the
wholesaler is left with the goods and the cost. If there is a significant change
in the value of the products between the time of the purchase from the
producer and the sale to the retailer, the wholesaler will absorb that profit or
loss.

5. Marketing:
Often, the wholesaler will fill a role in the promotion of the products that it
distributes. This might include creating displays for the wholesaler‘s products
and providing the display to retailers to increase sales. The wholesaler may
advertise its products that are carried by many retailers.
Wholesalers also influence which products the retailer offers. For example,
McLane Company was a winner of the 2016 Convenience Store News
Category Captains, in recognition for its innovations in providing the right
products to its customers. McLane created unique packaging and products
featuring movie themes, college football themes, and other special occasion
branding that were designed to appeal to impulse buyers. They also shifted
the transportation and delivery strategy to get the right products in front of
consumers at the time they were most likely to buy. Its convenience store
customers are seeing sales growth, as is the wholesaler.
 Retailers:

1. Buying and Assembling:

A retailer deals in different variety of goods which he purchases from
different wholesalers for selling to the consumers. He tries to locate best and
economical source of the supply of goods.

2. Warehousing or Storing:
After assembly of goods from different suppliers, the retailers preserve them
in stores and supply these goods to the consumers as and when required by
them. The goods are kept as reserve stocks in order to ensure uninterrupted
supply to the consumers.

3. Selling:
The end objective of the retailer is to sell the goods to consumers. He
undertakes various methods to sell goods to the ultimate consumers.

4. Credit Facilities:
He caters to the needs of the customers even by supplying them goods on
credit. He bears the risk of bad debts on account of non-payment of amount
by the customers.

5. : Risk Bearing:
A retailer has to bear different type of risks in relation to goods. While in
stores, goods are exposed to various risks like deterioration in quality,
spoilage and perishability etc. The products are confronted to natural risks
i.e. fire, flood, earthquake and other natural calamities. Other type of risks
like change in customer‘s tastes also adversely affects the sales.
 Distribution Intensity

The level of availability selected for a particular product by the marketer; the
level of intensity chosen will depend upon factor such as the production
capacity, the size of the target market, pricing and promotion policies and
the amount of product service required by the end-user.

Types of Distribution Intensity

1. Intensive Distribution:
Intensive distribution aims to provide saturation coverage of the market by
using all available outlets. For many products, total sales are directly linked
to the number of outlets used. Intensive distribution is usually required
where customers have a range of acceptable brands to choose from.
In other words, if one brand is not available, a customer will simply choose
another. This alternative involves all the possible outlets that can be used to
distribute the product.
This is particularly useful in products like soft drinks where distribution is a
key success factor. Here, soft drink firms distribute their brands through
multiple outlets to ensure their easy availability to the customer.

2. . Selective Distribution:
Selective distribution involves a producer using a limited number of outlets in a
geographical area to sell products. An advantage of this approach is that the producer
can choose the most appropriate or best-performing outlets and focus effort (e.g.,
training) on them. Selective distribution works best when consumers have a preference
for a particular brand or price and will search out the outlets that supply. This
alternative is the middle path approach to distribution. Here, the firm selects some
outlets to distribute its products. This alternative helps focus the selling effort of
manufacturing firms on a few outlets rather than dissipating it over countless marginal
ones.
3. Exclusive Distribution:
Exclusive distribution is an extreme form of selective distribution in which
only one wholesaler, retailer or distributor is used in a specific geographical
area.
When the firm distributes its brand through just one or two major outlets in
the market, who exclusively deal in it and not all competing brands, it is said
that the firm is using an exclusive distribution strategy.
This is a common form of distribution in products and brands that seek a high
prestigious image.
 Products and brands chosen for the project

i. Convenience product: soft drinks

Brand: coca cola

ii. Shopping product: Phone

Brand: Apple
 Convenience products

A convenience product is an inexpensive product that requires a minimum amount

of effort on the part of the consumer in order to select and purchase it. Examples
of convenience products are bread, soft drinks, pain reliever, and coffee. They also
include headphones, power cords, and other items that are easily misplaced.

Types of Convenience product:

1. Staple Products:
Staple products also known as staple goods or necessity goods are
those products consumer purchases in routine. As the consumer
purchased these products on regular basis, many buyers take little time
and efforts in decision making process.

Examples: 1. Purchasing dairy products on a daily basis

2. Vegetables and fruits preferably fresh

2. Impulse Products:
Impulse products are those types of consumer products that buyers
purchase without any planning. When consumers enter a store or mall
they don‘t have any intention to buy it. The motivational factor behind
 purchasing impulse products is different forms of advertisements like
radio and T.V commercials.
Examples: 1. Perfumes and body spray near the cash counter.
2. Chocolate bar and candy when paying cash at the
counter.

3. Emergency Products:
Emergency products also emergency goods are purchased by
customers in case of emergency. In many cases, consumers do some
research when buying a product but in case of emergency products,
they have no option left. These types of convenience products don‘t
have anything unique, but a certain situation makes it critical to
purchase.

Examples: 1. A good example is a raincoat and umbrella when heavy

rain starts suddenly
2. When your mobile and laptop battery is dead you have no option
but to purchase the new one on an emergency basis.
 Soft Drinks
Soft drinks are sweet, fizzy, refreshing and alcohol-free. They consist of
carbonated water with added syrup made from sugar and fruit or plant extracts.
The history of soft drinks is connected to the manufacturing of the first sparkling
mineral water in the 18th century. Some mineral water springs were known for
producing water which was rich in minerals and naturally carbonated. The sparkling
aspect of this water, like seltzer water, had long been a mystery. In the 18th century,
carbon dioxide was identified as the cause of these tiny bubbles. Production of the
first artificially carbonated mineral water began a short while later.
In 1780, Johan Jakob Schweppe, a German inventor, developed an efficient process
for carbonating water in Geneva. For a long time he had wanted to bottle spa
water with all its benefits and make it available to everyone. As a result, he
produced it artificially. The Schweppe, Paul and Gosse production plant opened in
1792 in London. The first bottles were egg-shaped, ‘to retain the gas more
efficiently’, and therefore could not stand upright. The company started to produce
soft drinks in the early 19th century.
In 1866 in the United States, an Atlanta pharmacist prepared a new syrup which,
according to him, had soothing, thirst-quenching qualities. The syrup was initially
diluted in chilled water, but became even more popular when mixed with
carbonated water. This drink, Coca-Cola, was initially sold in pharmacies. The
prohibition of alcohol in the United States, during the years which followed,
encouraged the development of sweetened, flavored carbonated water. Today, soft
drinks dominate the non-alcoholic beverage market.
 COCA-COLA
The Coca-Cola Company, American corporation founded in 1892 and today
engaged primarily in the manufacture and sale of syrup and concentrate for Coca-
Cola, a sweetened carbonated beverage that is a cultural institution in the United
States and a global symbol of American tastes. The company also produces and
sells other soft drinks and citrus beverages. With more than 2,800 products
available in more than 200 countries, Coca-Cola is the largest beverage
manufacturer and distributor in the world and one of the largest corporations in
the United States. Headquarters are in Atlanta, Georgia.

The drink Coca-Cola was originated in 1886 by an Atlanta pharmacist, John S.

Pemberton (1831–88), at his Pemberton Chemical Company. His
bookkeeper, Frank Robinson, chose the name for the drink and penned it in the
flowing script that became the Coca-Cola trademark. Pemberton originally touted
his drink as a tonic for most common ailments, basing it on cocaine from the coca
leaf and caffeine-rich extracts of the kola nut; the cocaine was removed from
Coca-Cola’s formula in about 1903. Pemberton sold his syrup to local soda
fountains, and, with advertising, the drink became phenomenally successful. By
1891 another Atlanta pharmacist, Asa Griggs Candler (1851–1929), had secured
complete ownership of the business (for a total cash outlay of $2,300 and the
exchange of some proprietary rights), and he incorporated the Coca-Cola Company
the following year. The trademark “Coca-
Cola” was registered in the U.S. Patent Office
in 1893.
 Raw material use for making of soft drinks
It is relatively simple to manufacture soft drinks by mixing three ingredients:
water, syrup and carbon dioxide. Different types of sugar are used to make the
syrup: sucrose, fructose (which is derived from starch), or sweeteners.
A blend of plant or fruit extracts is added to this sugar solution, the composition of
which remains a trade secret. The water and syrup are then mixed together in
extremely precise proportions. The final stage in the process is the carbonation of
the drink by adding carbon dioxide. Various acidifiers, sweeteners and coloring
agents can be included in the industrial manufacturing of soft drinks. Energy drinks
differ from soft drinks because of their very high caffeine content.
Nowadays, thanks to the soda machine, a home appliance which makes
carbonating drinks easy, you can make your own soft drinks or mineral water.
Purchase of raw material:
Channel of distribution done by Coca-Cola
According to official statistics, an amazing 1.9 billion products of Coca-Cola are sold
around the world every day.

The Coca-Cola Company is a global business that operates on a local scale, in every
community where they do business. The term is second most well-known after
okay, making it recognizable in nearly all communities and cultures across the
globe. The Company is able to create a global a global reach with local focus
because of the strength of its system, which comprises the Coca-Cola Company
and their more than 250 bottling partners worldwide.

The system has numerous legal and managerial departments and sections, all
independent of each other, and it does not own or control all of it bottling
partners worldwide.

While it is generally perceived that Coca-Cola runs all its operations globally it, this
process it done through various local channels. The Company manufactures and
sells concentrates, beverage bases and syrups to bottling operators. It still
however, owns the brand and is responsible for consumer brand marketing
initiative. The bottling partners manufacture, package and distribute the final
branded beverages to customers and vending partners, who then sell products to
consumers.

All bottling partners work closely with suppliers- grocery stores, restaurants,
convenience stores, amongst many others- to execute localized strategies
developed in partnership with Coca-Cola. More precisely, although Coca-Cola is a
global company, its products never have to travel far to reach the final consumer,
making the product more local than you may think, the product is made local to
the market where it is sold.
Their business is a local business, typically products aren’t shipped more than a
few hundred miles; it’s all about being responsive to the customers’ needs and the
local tastes of the consumers in every market. The Coca-Cola Company sells its
products to bottling and canning operations, distributers, fountain wholesalers and
some fountain retailers. They then distribute them to retail outlets, corner stores,
restaurants, petrol stations and many more.

Arrays of points of sales that Coca-Cola products can roughly be categorized into
are:

– Wholesalers/ distributers

– Retail/ corner stores/ super markets

– Restaurants/ cafes/ night clubs

– Petrol stations

– Automated teller machines (AMTs)

 Advertisement

Shopping products
Shopping goods usually requires a more involved selection process than
convenience goods. A consumer usually compares a variety of attributes, including
suitability, quality, price, and style. It also requires consumer research and
comparison of brands.
Shopping products are usually more expensive and are purchased occasionally.
The consumer is more likely to compare a number of options to assess quality,
cost, and features.
For example, look at the Air Conditioner, when a person wants to buy an Air
Conditioner he will first analyze different available brands in the market. There
must be a different brand and product features in his mind like heat and cool
features, low voltage and tropical compressor, styling, price, warranty and many
more. He will make efforts and compare different products based on cost and
features. He will select a brand which is a good value for the money he is paying.

Types:
1. Homogenous products: Homogenous shopping products are ones which fall in
same product categories. As they are in the same category, they are considered
by the customers to be quite alike. Thus there are only certain features which
can differentiate between 2 homogenous shopping products. Some examples of
homogeneous shopping products include automobile tires and electric
appliances.

2. Heterogeneous products: Heterogeneous shopping products are products

which are considered to be unlike and non-standardized. Some other examples
of heterogeneous shopping products include jewelry, cars, furniture etc. Each
and every one of these products belongs to one category, but every product is
different from each other in not only features but the basic make as well. Some
examples of heterogeneous products are furniture, clothing and other major
appliance.

Mobile Phone
The first mobile phones, as mentioned, were only used to make and receive calls,
and they were so bulky it was impossible to carry them in a pocket. These phones
used primitive RFID and wireless systems to carry signals from a cabled PSTN
endpoint.

Later, mobile phones belonging to the Global System for Mobile Communications
(GSM) network became capable of sending and receiving text messages. As these
devices evolved, they became smaller and more features were added, such as
multimedia messaging service (MMS), which allowed users to send and receive
images.

Most of these MMS-capable devices were also equipped with cameras, which
allowed users to capture photos, add captions, and send them to friends and
relatives who also had MMS-capable phones.

Along with the texting and camera features, cell phones started to be made with a
limited capability to access the Internet, known as “data services.” The earliest
phone browsers were proprietary and only allowed for the use of a small
subsection of the Internet, allowing users to access items like weather, news, and
sports updates. Eventually, phone makers started to engineer these phones to
access the entire Internet, and webmasters for all sorts of businesses, government
offices and other domain holders started to make web sites responsive to access
by mobile phones. The trend, called “responsive design,” changed the face of the
Internet, with mobile phone transactions making up a larger share of ecommerce
sales and other activities.

Apple
Apple, based in Cupertino, CA, is one of the most valuable companies in the world.
It produces popular digital gadgets, including Macs, iPods, iPhones, and iPads.

The company was founded in 1976 by two young hackers, Steve Jobs and Steve
Wozniak. Its second product, the Apple II, was the first personal computer to
achieve mass-market success. The Macintosh, released in 1984, introduced the
modern graphical user interface to the mainstream.

Apple began to struggle after its board ousted Steve Jobs from the company in
1985. When Jobs returned to Apple in 1997, it was close to bankruptcy. Then Jobs
led a spectacular recovery, introducing the iPod in 2001, the iPhone in 2007, and
the iPad in 2010. The result: Apple earned almost $40 billion in profits in its 2014
fiscal year.

Jobs died of pancreatic cancer in 2011. Since then, the company has been led by
Tim Cook, Steve Jobs’ longtime deputy.

Apple has been a Silicon Valley trend-setter for almost four decades. The Apple
II, Macintosh, iPod, iPhone, and iPad have all been widely emulated — if not
outright copied — by Apple's competitors.
Apple's success is due in large part to its obsessive focus on the user experience.
Apple is a designer-centric company that likes to build all parts of a product —
hardware, software, and online services — itself. That approach has allowed Apple
to build some of the most elegant and user-friendly products ever created.

Raw material used for making mobile phones

Components
Before reaching the design phase, phone manufacturers need to decide which technologies
they want to include in a cellphone. While components such as a screen, buttons, a battery,
and memory are all essential, it's up to the manufacturer to decide which components are the
most important. For example, if a manufacturer decides that it wants this particular phone to
appeal to consumers that are photographers, they may decide to invest in the latest camera
and screen technologies. This gives the phone an advantage that will appeal to a specific
demographic which may give that phone an edge when it gets to market.
Design
Once the components, or selling features, of that phone are decided, a team of designers and
engineers will mock up what that phone should look like. Jonathan Ive is arguably the most
famous cellphone designer. He has overseen designs for Apple and its iPhone's numerous
iterations. While he is the face for the design ideas, it actually requires a team of hundreds to
coordinate the design of a cellphone like the Apple iPhone. The design is crucial. While a
phone needs to function well, no one is going to buy a cellphone that doesn't appeal to their
fashion sense!
Software
When it comes to smart phones, there are two main operating systems (the 'OS') and one is
locked to one manufacturer, so if you're entering the smartphone business there's only one
real option when it comes to software. The iPhone uses the iOS software exclusively. Unless
you run Apple, the best bet is to go with Android OS which is open and free to use, which is
why so many manufacturers now offer it.Other OS include the Blackberry OS, which is
exclusive to Blackberry phones; the up-and-coming Windows Mobile OS, which deals primarily
with Nokia.
Manufacturing
After deciding what's going to be under the hood of that phone and the decisions on how it's
going to be made are chosen, it's time to actually build that phone! The parts are sourced from
their respective manufacturers (although parts are sometimes built by the same
manufacturer) then shipped to a central manufacturing facility where those phones are put
together. These manufacturing facilities, often constructed overseas to reduce costs, are
tasked with putting those phones together quickly and efficiently. Once constructed, the
phones are then tested, packaged, and shipped to distribution centers around the world! From
there, cellphones still need to be marketed, stocked on shelves, and then sold to consumers.
 Channel of distribution of mobile phone done by Apple

Apple designs its products in California, but the rest of the product is process
throughout the world. There are many complicated parts to Apple’s products, and
it would be difficult for one manufacturer to make them all so Apple has to work
with multiple manufacturers throughout the world. Components are made all over
the world by specialist of each part and sent to two main assemblers in China to
manufacture the final product, Foxconn and Pegatron. This drastically reduces cost
of goods for Apple due to the cheaper labor in China. Products are then sent all
over the world to its consumers through different distribution channels.
Apple’s direct distribution channel includes their physical stores and their online
store. Apple physical stores allows them to really control their brand image and
customer perception of them. All their stores worldwide have the same clean
white design with a high employee to customer ratio. This creates a really strong
brand image in consumers’ minds as they are seeing the same design everywhere
they go. They also often open their stores in high traffic locations to get as much
exposure as possible. Apple also sells directly through their website. Their website
can be access from all parts of the world and offer a huge range of languages.
However, even though Apple puts a lot of effort into their physical stores, a large
part of their sales and revenue comes from indirect distribution channels. In 2018,
Apple reported that 29% of their net sales came from direct channels and 71%
came from indirect channels. Consumers can buy Apple products from third-party
sellers and carrier providers. This includes stores like BestBuy, Walmart, and
Target as they are easily accessible and might offer discounts. Apple creates a
good brand image through their physical stores and sells their product through
third-party companies.
Advertisement
 Bibliography

https://www.coca-colacompany.com
https://www.alimentarium.org/en/knowledge/soft-drinks-0
https://curiosityguide.org/technology/what-materials-are-used-to-make-
smartphones/

https://www.apple.com/ae/

Appendix