DISTRIBUTION USING WHOLESALERS: This is when the manufacturer sells goods to the wholesaler in very large quantities and cheaply. They add a mark up to cover their costs and make a profit and sell at a higher price to retailers. They in turn add their mark up before selling to consumers.
DISTRIBUTION THROUGH OWN SHOPS: Goods are sold to consumer through shops owned by the manufacturer. E.g. Nike sells trainers in the Nike town.
DISTRIBUTION DIRECTLY FROM PRODUCERS: goods are sold directly to consumers by the producer. E.g. farmers selling through farm shops and nurseries selling through own garden centres or by mail order.
Retailers
A retailer is any point where goods are sold directly to consumers. Goods are sold in the small quantities that consumers want. Retailing is more than just shops and showrooms. It includes market stalls, vending machines and mail order. Services, such as hairdressing, printing, banking and insurance, are also sold retail. More recently, banks have used other ways to retail their services – through cashpoint machines by telephone and on the Internet.
Wholesaler
The wholesaler provides a link between the retailer and the manufacturer, providing both of them with a service. These days, wholesalers are mainly used by small businesses.
Services to manufacturers
- Wholesalers buy in bulk from manufacturers who only have to deal with a few large orders from wholesalers and not with many small orders from retailers. This saves on clerical and distribution cost.
- They store goods until they are sold. Manufacturers need less storage space, cutting costs.
- They reduce manufacturers’ risks. If the goods are not sold it is the wholesaler that suffers the loss, not the manufacturer.
Services to retailers
- Wholesalers break bulk. This means they buy in large quantities from the manufacturer. They sell to retailers in the small quantities they want.
- They offer a choice of goods in one place. Goods from several manufacturers can be compared and bought at the same time. This saves having to write several orders and pay several firms.
- They can advise retailers on the latest products, special offers and lines that sell well.
According to the product field research,
Product features (place)
The results state that the majority of my target market will purchase the trainers from the retail shops or online as 20/42 each of these options with a total of 40/42 between them. 2 people said they purchase trainers from wholesalers.
According to the desk research
According to my research my competitors trainers are most commonly sold in popular sports retail shops such as JJB sports, JD Sports, Foot locker which are all part of the retail chain. Other means used by my competitors to sell the product to the public is through internet sites such as and , also through their corresponding web sites such as and . When product is sold through retail in a shop the shop most likely is promoting the different trainers in and outside the shop through posters and offers.
Conclusion
The product will be sold in popular retailers as according to my desk research its is an effective method for my competitors and also it is a preference for my target market also the trainers will be sold through the internet as it is proffered by my TM as it is easier for elderly to purchase from hjome and this method is also used by my competitors.
The method of distribution used will be distribution through wholesaler. This is when the manufacturer sells goods to the wholesaler in very large quantities and cheaply. They add a mark up to cover their costs and make a profit and sell at a higher price to retailers. They in turn add their mark up before selling to consumers.
This will provide a wide range of place for my customers to buy the product. However, the fact that many people would like to buy it from the internet because it is easy and quicker is not a retailer or a wholesaler. Therefore, we should include internet to sell the product to our consumer as well, for the problem to be solved.
This is called Ecommerce. This has made the marketplace much bigger and access to the worldwide web can be bought easily from other countries and also it is easy for elderly people to access our product. This is when buyers sell goods and services electronically, via internet. It has grown a lot in the past couple of years because of the growth of home computer users.
The best transport for my product would be lorries/trucks as it will be quicker especially if the product is just inland such as my product. This is very common in U.K and will be able to carry and hold a huge number of trainers. However, if the company is trying to transport the product overseas, for now, the best one will have to be sea freight. This is economical than air freight. But then, we will have to deal with the long-distance travel and the time consumed for the transportation as it will take a very long time. In plan, we will try to use air freight when the product sales are growing quickly. This will be expensive but we’re that it will arrive on time.
The places I have chosen to sell my product are very common to my competitors. However, with the promotion and easy access, they will try and choose the product from Apple Company. In this case, the buyers will know that it is available in various places and won’t have a hard time finding the new released
