Improving The Distribution Route Of Products Marketing Essay

Enterprises in market economy pay extensive attention to the issues of marketing of procedure for distribution goods from developer to consumer. The results of their economic activities typically depend on how well are the selected channels of distribution of goods, on success of varieties and ways of marketing, the number and quality of organization services related to product sales.

The study is based on an research of the winery product "Wine Valley".

Relying on the theoretical materials the newspaper presents an action plan to increase sales by increasing circulation network of products: the beginning of retail stores and the use of banner advertising.

Sales of products requires identifying and assessing the marketplace where enterprise works, and external environment of the business. These enables to be sure important decisions: to identify attractive opportunities, identify problems and weaknesses in the business, the correct selection of effective varieties and sales channel, improving the movement of goods, the choice of measures to promote the merchandise. Effective circulation of products is a required condition of good procedure results, as syndication is the final stage of the development process, and it brings the product to the buyer.

Improving the circulation route of products

Distribution channel can be interpreted as a course (road) of the movement of goods from suppliers to consumers. The choice of distribution channels of products is a superior management decisions that have an effect on all other decisions in the field of marketing. Sales of products, in most cases, is carried out through intermediaries, who through their contacts, experience and expertise allow to bring the huge selection of goods to the target markets. (Blythe 2001)

Distribution stations can be of three types: immediate, indirect and merged.

Direct programs are associated with the movements of goods and services without the involvement of intermediary organizations. They are often established between manufacturers and consumers, who retain control of their marketing program and have limited target market segments.

Indirect channels are associated with the movements of goods and services from the first company to intermediary, and then from it - to the buyer. Such channels typically entice companies and businesses that to be able to increase their markets and sales volumes agree to give up many marketing functions and costs and, accordingly, some part of control over the deal, and prepared to slightly weaken the contact with consumers.

Mixed channels incorporate the features of the first two stations of product circulation.

Merchandise marketing is something that delivers the goods to places of deal in a specifically described time and with the highest level of customer support. Foreign authors under the merchandise distribution to understand the organized planning decisions regarding the physical motion and copy of ownership of the goods or services from maker to consumer, like the transportation, storage space and orders. (Blythe 2001)

In most conditions the choice of distribution channel of product is the most important decision for the company.

In 2008, the firm's management made a decision to create a top quality chain of stores, to ensure a certain self-reliance from external factors, against the setting of unfortunate circumstances, that contain shown the effectiveness of this direction. The step to open up branded retail retailers was an extremely profitable decisions predicated on high performance of brand suppliers, when the company must increase this capacity by increasing existing retail.

This tactical decision was made anticipated to so important gain for companies of this profile as the well-timed receipt of cash at a significant attention in the retail route. The main advantage of corporate retail syndication channel is the capability to obtain additional income by trading margins.

Improving the promotion of products of the enterprise

Promotion is any form of marketing communications utilized by the venture for information, persuasion and reminders about their products and services. (Blythe 2001)

Sales Campaign - short-term incentive measures to encourage the purchase or sales of goods or services, as well as various non-recurring marketing efforts, which are not part of standard types of procedures for advertising (for example advertising).

The overall aim of campaign is arousal of demand, so that increasing or maintaining the same level of demand. However, this overall target can be divided into two wide purposes: to market goods, services and enhance the company's image. Both goals are called to induce demand, so that aimed to sell the merchandise. However, in the first circumstance, the business stimulates demand for a specific product or service, while in the second case it enhances the "image" of the company and its brand, in the desire that buyers will relate this positive image not with one product of the company, but with all goods. Consequently, in the next case, the target is not reselling a specific product but to promote demand for all goods of the company.

Starting from a slim consumer demand for "Wine Valley" and therefore of against the law market penetration of cheaper products, the business needs to inform the greater number of potential buyers the products, by widening its brand advertisement through on the market new advertising stations.

Nowadays there are new impressive advertising route - the Internet and its own main service www (internet), which any company in the current conditions should used. THE WEB is a first implementation of hypermedia computer-mediated environment, that includes a unique opportunity to advertise and serve as the two basic elements:

- Internet is a fresh means of communication, and is a means of representing hypermedia information, that significantly differs from traditional marketing interactive naturally, high versatility and scalability;

- Internet is a worldwide virtual digital market that will not have any territorial or time limitations, allowing to make interactive advertising campaign of products without distribution firms.

Such advertising is targeted at:

1. Creating a favorable image of the company or product that is very important for the firm "Wine Valley", as a result of limitations on advertising of wine production.

2. Ensuring availability of information about the business or products for hundreds of millions of people, including geographically remote regions.

3. Retailing products via the web is merely a digital representation that don't need not wide open new shos - which allows to reduce the cost of sales.

In this circumstance, the business uses the next advertising: commercial Web-server - to make web-pages, banners, email, etc.

Enterprise "Wine Valley" has its Web-server on the Internet, which contains a short description of the business, prices, delivery terms, etc.

For the organization "Wine Valley" determined that the most more suitable is always to use banner advertising. The main goal of this advertising campaign is: to establishment and improve a good image of the business, and in that way to increase the amount of customers.


In this paper, we have revealed the use of new distribution programs for goods of company "Wine Valley", as a fresh circulation strategy and promotion of goods. The analysis has helped to articulate the key guidelines of the new syndication channel for the business, and promotion actions. Based on the information of the business:

- the use of direct marketing (top quality retail stores) by the business "Wine Valley" allows to increase sales and improve the timely awareness of cash that is essential for companies.

- The company is under certain legal restrictions on advertising of wine beverages production, that's the reason it uses only allowed methods of campaign of goods to the marketplace;

- the business uses the Internet, and such method of advertising as banner advertising to be able to inform new customers about the merchandise, that is to boost the sales and make more revenue.

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