Place

• Distribution = How a firm gets its products to their consumers
• Bricks & Mortar - physical shops
• Bricks & Clicks - Online + physical shops
• Multichannel = using more than one distribution method
• Distribution methods


  • Producer →

  
• Examples of businesses using the:

  • Producer → Wholesaler → Retailer → Consumer

  • Coca-cola
  • Local restaurant
• Examples of businesses using the distribution method of:

  • Producer → Retailer → Consumer

  • H&M
• Examples of businesses using the distribution method of:

  • Producer → Wholesaler → Consumer

  • Costco
• Examples of businesses using the distribution method of:

  • Producer → Consumer

  • Bakery
• Examples of businesses using the distribution method of:

  • Producer → Agent → Consumer

  • Booking.com
• Disdvantages of levels of distribution

  • Costs fluctuate:
  • each level needs a margin
  • Transport
  • Loose control of goods
• Advantages of levels of distribution

  • More reach to customers
  • Easier and less costly for producer
• Factors impacting the choice of distribution


  • Freshness
  • Price → for consumer + producer
  • Storage costs for buying in bulk
  • Frequency
• What are the changes in distribution?

  Digital distribution

  • e.g. VHS → Netflix