Promotional and Distribution Strategy : Distribution Strategies

Describe about the Promotional and Distribution Strategy for Distribution Strategies.

Distribution strategy:

Boone & Kurtz (2013) mentioned that distribution strategy, concerning a product, is dependent upon the nature of product, geographical distances of its targeted consumers, capital investment made on the product by manufacturer etc. In case of present case of clock, it can be assumed that the targeted consumers are young earning individuals with a high propensity of spending large sums of money upon luxurious commodities. Thereby, the first preference pertaining to the product shall arise out of the fact that the manufacturing company could initiate direct distribution routes. Thereby, through channels such as online retailers, the manufacturer can connect with online shoppers. In case the initial stock manufactured by the product is of large size and the targeted consumers are concentrated in a small geographical area, then the distribution channels tends to be retail.

In this case, owing to the nature of the product, there are instances whereby the consumers are primarily scattered. This is coupled with the fact that, online retailing has the highest degree of accessibility as compared to wholesaling and offline retailing activities. Thereby, the distribution channels shall primarily focus upon online retailing. Thereafter, depending upon the forecasted demand and the expected responses from marketing activities the distribution strategy shall accommodate wholesaling and offline retailing. However, for the initial periods, online retailing strategy can be construed to be prudent for the clock manufacturer. Moreover, online retailing facilities in keeping high profit margins and thereby, the manufactures shall be able to retaining majority of product price sans logistics costs and online retailer’s commission (Fernie, 2013). The promotional campaigns that are to be undertaken shall be primarily using social networking platforms for promotion of its products. Therefore, the targeted audience pertaining to the clock are considered to be internet savvy and thereby online retail platforms can be used for generating sales of the product. Thereby, direct distribution methods are currently utilised.

Promotion strategy:

Yang et al. (2015) stated that that promotion strategies pertaining to new products entails clearly defining the targeted consumers that are derived through segmentation. In the context of current product, it can be construed that the major unique selling point (USP) of the product has arisen out of the designs of the product. Thereby, in terms of market positioning of the product, the primary strategy is to attract young working professionals. The blending of iconic structures of Malaysia with that of luxury clock can be promoted as a classic mixture of fashion, ethnicity and cultural identity. The young working professional tends to display high consumption level as compared to other age groups and their propensities to expend upon luxury commodities are significantly high. The data analytics pertaining to activities in social networking sites can facilitate the clock manufacturer in gauging the preference level for the clients. Moreover, in terms of designing promotional activities pertaining to the watch, it is relevant that the promotional campaign reflects messages of unity and local culture. Further, it is relevant to connect with the prospective consumer for facilitating a robust initial launch.

Hollensen (2015) stated that segmentation of the market facilitates in marketing of a product along with enhancement in prospective sales of the product. Thereby, the marketers require disseminating the market into segments that comprise of a combination of demographic and economic factors. In terms of its products, it is relevant to note the fact that after selecting young working professionals as the primary target for the product, the millennial consumers can be attracted.  The initial launch, pertaining to the product, shall have to be done through collaboration with online retailers as that enhances the accessibility of the product to the prospective consumers. The promotional campaign shall have to be designed in a manner so as facilitate creation of product image that resonates classiness.

In terms of launching of the clock and the initial promotions pertaining to the product, social media and websites with high quantum of online traffic are the primary preference for marketing. Entering into contract with a cultural icon for being the brand ambassador for the product can enhance the promotional strategy for the product. Moreover, discounts for the opening stock of the product can also be arranged to facilitate positive initial response out of the consumers. Thereby, it can be construed that for facilitating the promotional campaign, the primary, marketing channels shall have to be online based. Thereafter, decisions require to be undertaking the pricing of the product. The middle income and high-income groups are to be approached for the product and thereby the pricing had to be within the preference levels.

References:

Boone, L. E., & Kurtz, D. L. (2013). Contemporary marketing. Cengage learning.

Fernie, J. (2013). Distribution strategies of European retailers. Logistics Information Management.

Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.

Yang, S., Liao, Y., Shi, C. V., & Li, S. (2015). Joint optimization of ordering and promotional strategies for retailers: Rebates vs. EDLP. Computers & Industrial Engineering, 90, 46-53.

 

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