-
Examination Of Distribution Channels For Consumer Foods
[A CASE STUDY OF OKIN BISCUIT OFF]
CHAPTER ONE -- [Total Page(s) 2]
Page 2 of 2
-
-
-
The first channel (manufacturer to consumer) is a direct channel of distribution such channels are established when manufacturers sell through mail order by catalogue or with their own field sales. E.g Aven Cosmetics.
In another channel, producers sell to retailers who in turn sell to consumer. This channel represent the path taken by good handles by departmental stores.
The third channel is where wholesalers deal directly from the producers to retailer who make the goods available to target consumer. That is the traditional method where by goods have been distributed in many countries. It is still the prevalent retailer such as clothing, specialist shop (hairstyle) drugs etc.
Other channel also provide different ways of reaching final consumer. These channels suggest possible ways which has so many possible variations too. The possible variation should not be seen as a competitive channel. Each should be considered a separate possible channel to reach a particular target market. Producers may adopt any one or more to these channels to have their goods reach final consumer as large quantity as possible. But the channel chosen must deliver goods and provide all the marketing functions.
1.2 AIMS AND OBJECTIVES OF THE STUDY
The aims and the project is to examine the distributions channel of consumer goods and to be able to differentiate between the goods channels in different form.
1.3 SIGNIFIANCE OF THE STUDY
The importance of examination of distribution channel of consumer goods is to know how goods are getting to the consumer through the channel of distribution of middlemen. The distributional channel are the key process through which good are available for consumer without the channel the goods would not be realize in so many market.
1.4 SCOPE OF THE STUDY
Perhaps the most obvious point to note is the fact that this study is selective. Therefore, it takes a global view of examination of distribution channels for consumer goods, since the goods produced go through some process of distribution and enhances distribution channel.
It is pertinent to point out therefore, that this resulted only to the examination of distribution channels of consumers goods.
1.5 LIMITATION OF THE STUDY
It is very important to note that this project does not generally consider the examination of distribution channels for all goods. But it emphasis basically to the study of examination of distribution from channels of consumer goods.
1.6 DEFINITION OF KEY TERMS
When carrying out the exercise of examining distribution channels, evaluation of certain key terms are borne in mind by the term charged with the responsibility. Among them are the following.
i. Quality
It refers to the suitability of an item and its intended purpose. Hence, quality have include ability and willingness of the suppliers to meet buyers specification. This refers not only to the total amount of the goods but also the schedule amount to which goods are required.
Thus, a channel who might be able to provide the quantity specified would not be a satisfactory channel from the point of view of quantity.
ii. Price
A price is the value at which a commodity is acquired. Thus a price is good only if it is the lowest price offered for a desire quality and accompanied by sufficient useful services.
iii. Time
The manufacturing of consumer goods is expected to select a reasonable channel that can meet up with the time schedule for delivery and take every reasonable action to ensure the product reach the targeted consumer at appropriate time.
iv. Financial Capacity
If the supplier of goods through a chosen channel has cash flow problem he may have difficulty in paying his account subsequently in provision of ware house this may affect the delivery time and possibly the quality of the goods.
v. Location
The geographical location of the suppliers is another consideration transportation from producers to ultimate user is subjected to many risk.
CHAPTER ONE -- [Total Page(s) 2]
Page 2 of 2
-
