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Distribution Group

Molto will use a mass distribution strategy in Egypt to reach a large audience through widespread availability. The main distribution channels will be supermarkets, convenience stores, and wholesalers/distributors. Factors influencing the channels chosen include the target audience, product characteristics, logistics, competition, and regulations. Members of the distribution channel will be motivated through trade discounts, marketing allowances, performance bonuses, and early payment discounts. The extent of control required in the distribution channel is not specified.

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44 views2 pages

Distribution Group

Molto will use a mass distribution strategy in Egypt to reach a large audience through widespread availability. The main distribution channels will be supermarkets, convenience stores, and wholesalers/distributors. Factors influencing the channels chosen include the target audience, product characteristics, logistics, competition, and regulations. Members of the distribution channel will be motivated through trade discounts, marketing allowances, performance bonuses, and early payment discounts. The extent of control required in the distribution channel is not specified.

Uploaded by

Fady Samy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Distribution management

Create a presentation containing the following:


- A distribution strategy for a chosen product and determining:
- product: Molto (croissants)
- Market: Egypt
 The type of the strategy.
- Mass Distribution: Molto is a well-established brand with a range of
products catering to different segments. A mass distribution strategy
involves making your product or service available in a wide range of
locations and through a large number of channels.
Advantages:
- Reach a large audience: This is the biggest advantage of mass
distribution. By making your product available in many places, you can
potentially reach a much larger customer base.
- Increased sales: This is because more people will be aware of your
product and have the opportunity to purchase it.
- Brand awareness: Mass distribution can also help to build brand
awareness. By being seen in more places, your brand will become more
familiar to consumers, which can lead to increased loyalty and trust
Disadvantages:
- Higher costs: Mass distribution can be expensive. You will need to invest
in marketing, sales, and distribution channels, as well as in inventory to
support your wider reach.
- Competition: When you distribute your product in a wide range of
channels, you will be competing with more businesses. This can make it
more difficult to stand out and attract customers.
- Loss of control: you may lose some control over how products is
marketed and sold. This can affect brand image and ensuring that
customers are getting a good experience.
 The distribution channel and factors affecting it.
Main Channels:
- Supermarkets and hypermarkets: Major focus, catering to diverse
customer segments and providing bulk buying options.
- Convenience stores and kiosks: Important for impulse purchases and
reaching on-the-go consumers.
- Wholesalers and distributors: Reach smaller retailers and remote areas
efficiently.
Influencing Factors:
- Target audience: Location, buying habits, and preferred store types.
- Product characteristics: Shelf life, storage requirements, and price point.
- Logistics and infrastructure: Efficient transportation network and storage
facilities.
- Competition: Distribution channels used by competing brands.
- Government regulations: Licensing requirements and distribution
restrictions

 The compensation used to motivate members of the distribution channel.


- Trade discounts: Percentage reductions on purchase price based on
volume or commitment.
- Marketing allowances: Promotional support like co-operative advertising
and in-store displays.
- Performance bonuses: Rewards for exceeding sales targets or achieving
specific objectives.
- Early payment discounts: Incentives for prompt payment of invoices.

 The extent of control required in the distribution channel

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