Concept of distribution strategy.A distribution strategy is a process to get a service or product from the manufacturer to the consumer.. Includes decisions about distribution channels,
Trang 1ĐẠI HỌC DUY TÂNVIỆN QUẢN LÝ NAM KHUÊ
-BÁO CÁO ĐỒ ÁN KẾT THÚC HỌC PHẦN
MÔN HƯỚNG NGHIỆP 2
ĐỀ TÀI:
The progess from manufacturer to costumer
GVHD: NGUYỄN THỊ MAI DIỆU
Trang 2First of all, we would like to send our most sincere thanks to Ms Nguyen Thi Mai Dieu During the process of studying and researching career guidance subject 2, we received a lot of attention, help, and guidance her enthusiasm and dedication She helped us accumulate more knowledge about this subject so
we could complete the essay on the topic: The process from manufacturer to consumer (The process from manufacturer to costumer).
In the process of doing the test, it is certainly difficult to avoid shortcomings Therefore, we respectfully hope to receive your comments to help my essay become more and more perfect.
We sincerely thank you!
Trang 3Table of contents
I Overview of distribution strategy
1 Concept of distribution strategy
2 Types of distribution strategies
3 Factors to consider when building a distribution strategy
4 Steps to building an effective distribution strategy
5 Benefits when implementing an effective distribution strategy
6 Intermediaries in the product distribution campaign
7 Example of distribution strategy
II.Collect and process information
III Research results
1 Introduction
2 Distribution process
3 Distribution strategy
4 Customer Interaction and Shopping Experience
5 Technology in the Distribution Process:
6 Market Strategy and Strategic Partners
7 Safety and Security During Distribution
8 Challenges and Opportunities in the Distribution Process
9 Efficiency and Measurement in the Distribution Process
10 Conclusion and Future in the Distribution Process
Trang 4Danh mục bảng viết tắt
Planning
Hệ thống giúp hoạch định nguồn lực doanh nghiệp
for Standardization chuẩn Hóa Quốc Tổ chức Tiêu
tế
toàn cầu
hiệu quả công việc
System
Hệ thống quản lý kho
Trang 5Danh mục hình vẽ
Trang 6I Overview of distribution strategy
1 Concept of distribution strategy.
A distribution strategy is a process to get a service or product from the manufacturer tothe consumer Includes decisions about distribution channels, processes, storage, orderprocessing and shipping to ensure products reach customers at the right time, place and quantity
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Distribution strategy is extremely important to the business success of a business The more effective this strategy is, the more satisfied and loyal customers will be, and the more cost-effective the operation will be, the more the business can grow and reach more new customers
2 Types of distribution strategies:
Mass distribution strategy: this is a form in which the product and service provider reaches as many intermediaries as possible The mass distribution strategy is applied to the vast majority of consumer goods, such as raw foods, fruits and vegetables, household appliances, beverages,
Trang 7Exclusive distribution strategy: this is a strategy to limit the number of intermediaries, applied to expensive, limited goods that require extremely high levels of service and technology This strategy helps businesses easily manage and protect brand and customer images.
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Intensive distribution strategy: with this distribution strategy, the product is introduced into as many retail locations as possible, trying to cover as many markets as possible, such as soft drinks that are put into convenience stores, grocery stores, vending machines, etc
Selective distribution strategy: is a choice between intensive and exclusive distribution strategies The product will be distributed in many locations but not as many as an intensive distribution strategy This form helps create hidden messages about the brand and increases the chance of buying genuine products from buyers This strategy is common in shopping centers, brands will be carefully thought out
by manufacturers to locate their headquarters - places with high consumer demand, distributing customers in the most convenient way, for example, including brands Charles & Keith, H&M,
Trang 83 Factors to consider when building a distribution strategy
The type of product: different features of services and services will be appropriate for different distribution strategies For example, fast consumer products are often widely distributed, whereas advanced products are usually used in exclusive distribution
Target markets: The distribution strategy should be consistent with the market object that business is targeting For example, if business market objects are young consumers, can use online distribution channels or retail stores in urban areas.Business goals are needed to support business goals such as increasing sales, opening markets or increasing brand recognition
Entries: The competition needs to consider the distribution of competitions to ensure that the strategy of the competition is in order to ensure that the strategy of the competition is in place
The dumps, transportation: The storage process along with the shipping process is afactor to consider when the business builds the distribution strategy For example,
if the business chooses to choose the direct distribution method, they will need to have a warehouse to store goods, transportation, management, storage, storage arrangements, and the delivery work
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Trang 94 The Steps to Effective Distribution Strategy
Step 1: Select Client Objects
First of all, businesses need to know their target client's focus is ai; each client needs a different approach strategy because the needs and expectations of the customers in the market are getting more and more diverse today
When building customer portraits, business can answer the following questions:
1 Who are our customers?
2 How do they usually make purchases?
3 What are their shopping needs?
4 What do they expect from the company's products/services?
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The responses to these questions will directly impact the distribution strategy that the business is implementing The process of gaining customer trust and brand selection is challenging if the product does not meet their needs or align with market demands
Step 2: Define the Brand's Product
Next, businesses need to identify the product they want to target to a specific audience To do this, businesses need to understand the following two aspects clearly:
1 Brand Assets: This factor helps businesses understand their position and value in the market A strong brand asset will provide significant advantages,enabling businesses to be flexible in implementing marketing strategies and setting targets with their distribution partners
2 Product Categories: Depending on the types of products a business deals with, they should determine the most suitable distribution strategy
To identify this, besides conducting internal research, businesses also need to conduct market research targeting their audience Creating a SWOT analysis table to study the market is the simplest and most effective way to support businesses in this step
Trang 10Step 3: Selecting Distribution Channels
After analyzing customers, products, and the market, businesses need to choose suitable distribution channels to integrate into their strategies For small-scale businesses, utilizing a direct distribution strategy is a fitting choice Additionally, they may consider incorporating some intermediary channels as it can help reduce costs and mitigate risks to some extent
At the same time, businesses should also pay attention to logistics Renting or building additional warehouses, investing in delivery teams and transportation vehicles, along with focusing on training sales skills for employees and marketing, will contribute to the business's development process
Step 4: Distribution Channel Management
Finally, businesses need to meticulously manage their distribution channels throughout the implementation of their distribution strategy The distribution channels need to meet the following criteria adequately:
1 Quality: The distribution channel management team and sales force need to
be equipped with comprehensive sales skills and market access capabilities
2 Function: Personnel need to have a clear understanding of the goals, functions, requirements, and authority of the distribution channel they are involved in Businesses need to provide training to develop skills, share vision, and mission for channel members Additionally, establishing policies
on rewards and penalties will help enhance the quality of the workforce
3 Policies: Distribution channels need to fully implement the advertising, discount, and promotion policies set by the business
4 Quality: The distribution channel management team and sales force need to
be equipped with comprehensive sales skills and market access capabilities
5 Function: Personnel need to have a clear understanding of the goals, functions, requirements, and authority of the distribution channel they are
Trang 11involved in Businesses need to provide training to develop skills, share vision, and mission for channel members Additionally, establishing policies
on rewards and penalties will help enhance the quality of the workforce
6 Policies: Distribution channels need to fully implement the advertising, discount, and promotion policies set by the business.Hình 1.4
5 Benefits of implementing an effective distribution strategy include:
Knowing how to develop and implement a product distribution strategy brings several benefits:
Cost savings: Businesses can easily make cost-saving decisions such as cutting ineffective intermediary channels, minimizing transportation and warehousing costs Additionally, the quality of intermediary channels also contributes to reducing manufacturing costs for the business
Market expansion: A distribution strategy can be envisioned as a detailed map of goods circulation By using intermediary channels, products can reach consumers quickly, thereby expanding the distribution network and customer reach
Tight control: A distribution strategy helps businesses understand and control every step in the distribution process, ensuring that goods reach customers promptly
Easy feedback collection: Not only collecting information from customer feedback, but also gathering data on sales volume, quantity of goods sold, and order lead times from distributors This information helps businesses
Trang 12assess the product's market position and supports the process of making appropriate adjustments to meet consumer needs.
Enhancing core business value: Businesses can shape the value of their products and brand image in the market through decisions to limit or expand their product range
Accelerating growth: With an effective product distribution strategy, businesses can quickly expand their market share Intermediary channels alsoplay a crucial role in reaching customers that businesses cannot reach, thereby expanding the customer base and accelerating business growth.Improving marketing campaign effectiveness: Businesses can combine general advertising campaigns with intermediary channels This helps attract customers more easily and evenly distribute advertising costs
6 The intermediaries in a product distribution campaign.
Retailers: Retailers are entities that engage directly with customers They may purchase goods from manufacturers or through wholesalers The wholesale prices that retailers purchase goods are often lower than the suggested retail prices offered
by manufacturers, ensuring profitability when selling products to customers
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Wholesalers: Wholesalers are entities that seek large quantities of products from multiple manufacturers and then deliver these products to retailers or distributors Wholesalers always strive to purchase goods at the lowest possible cost, creating a price difference between the purchase price and the selling price to increase profitability To ensure this, wholesalers need to own multiple warehouses and a diverse range of goods to provide retailers with a wide selection of options
Trang 13Franchisors: Franchisors can be individuals, businesses, corporations, or
government entities with significant financial resources With the desire to invest and conduct business to achieve higher profits than the interest rate at banks, while also increasing brand recognition
Distributor: A distributor is responsible for transporting goods from the place of production to retail points With a distributor, manufacturers do not need to manage
a workforce or incur costs such as salaries and bonuses Distributors often own a packaging system for products to deliver to retailers
7 Example about distribution strategy
Example 1: Apple employs a selective distribution strategy to bring its products toconsumers' hands They only distribute products through authorized retail partnerssuch as Apple Stores and mobile phone retailers This strategy brings significantbenefits to Apple Thanks to this strategy, they have better control over productquality and provide excellent customer service
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Example 2: The watch company Rolex implements an exclusive distribution strategy to distribute its products to consumers They choose to collaborate with authorized retail partners such as upscale watch retailers Through this strategy, Rolex maintains the exclusivity of its products and ensures the highest quality of service for customers
Trang 14The product distribution strategy always plays a crucial role in the business operations of every enterprise A successful distribution campaign is not only evident in economic aspects but also reflected through consumer evaluations of the business Therefore, understanding how to construct a distribution strategy will be adetermining factor in helping enterprises move closer to success.
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Trang 15II Collecting and processing information
1 Data Collection:
Gather data about products, sales points, and customers
Collect transportation and storage data from shipping partners and warehouses
2 Data Analysis:
Utilize data analysis tools like Excel to analyze collected data
Analyze data on current transportation models, delivery times, shipping costs, and customer satisfaction
3 Building Predictive and Optimization Models:
Apply prediction methods such as demand forecasting, delivery time prediction to optimize the distribution process
Use optimization methods like Linear Programming, Integer Programming to optimize transportation routes and goods distribution
4 Designing New Distribution Strategies:
Consider factors such as warehouse network, transportation routes, and customer requirements
Based on data analysis and modeling, design new distribution strategies to improve efficiency and reduce transportation costs
5 Implementation and Monitoring:
Implement new distribution strategies and monitor performance by comparing withprevious performance indicators like delivery times, shipping costs, and customer satisfaction
Adjust strategies based on feedback and new data to continuously improve the distribution process
Trang 166 Research Directories and Industry Books:
Look for books and industry directories on supply chain management, logistics, andmarketing to gain an overview of the process from manufacturing to consumers
7 Internet Research:
Use search engines to find articles, papers, and online resources from reputable sources such as research organizations' websites, universities, or government agencies
8 Read Reports and Original Research:
Review reports from international organizations, research institutions, or
management agencies on trends and challenges in the manufacturing and
distribution process
9 Conduct Surveys:
If possible, create and conduct a survey to gather data from businesses,
manufacturers, or consumers about their perspectives and experiences with this process
10 Utilize Statistical Data:
Use statistical data from sources such as national or international statistical agencies to support and illustrate trends and key figures
11 Data Analysis:
Process collected data to draw conclusions and conduct in-depth analysis of the process from manufacturing to consumers
12 Comparison and Cross-Referencing:
Compare information and data from multiple sources to gain a comprehensive viewand cross-reference information