Chapter 8 Distribution and supplier analysis
When setting up a distribution analysis, three types of decisions must be made:
1. The choice of distribution intensity (objective)
2. The choice of the distribution channel
3. The management of the distribution channel
A distribution analysis takes place on three aggregation levels:
1. Macro level: Macro level is about mapping the entire distribution column, both vertical and
horizontal. So, this is global distribution structure. The analysis forms the input for the
choice of the distribution channel.
2. Meso level: the meso level concerns the more specific distribution structure within one type
of intermediate link. For example, the distribution of power within the type of supermarkets.
It may also concern the position of brands within the group of retailers. (analysis of the
distribution intensity.
3. Micro level: the micro level is about the strategies and wishes and desires of individual
distributors (distributor analysis). Be with separate distributors here mainly separate retail
chains, such as the Jumbo. So it is not about separate distribution points, because a chain
consists of several stores.
The analysis of the distribution structure at the macro level involves two dimensions:
1. The number of levels in the distribution column (vertical: length of the channel)
2. The type of intermediaries within one level, such as within the group of retailers distinction
between supermarkets, discounters, convenience stores, specialty stores or the "gray
“circuit 'of petrol pumps, for example.
Direct delivery takes place to customers without the use of intermediaries; this includes all
trade of producers via the Internet. Online sales are on the rise.
Intermediaries are called in for indirect delivery. Possible intermediaries between
products and consumers are: agents, importers, wholesalers and retailers. If you choose the
delivery via retailers only, we speak of a short channel.
In all other cases is a long channel. Some of the selection criteria here are the number of customers
that the company wishes to operate and the type of product.
Incidentally, there is not necessarily one channel to be chosen; combinations are also possible, for
example if the company is both active in an industrial as well as a consumer market. Or when an
organization has both directly and through intermediaries. In this case, there is a multichannel
strategy.
The Internet has become an indispensable sales channel. Online shopping is booming. There
are three types of companies that do this:
1. Companies that already supplied to consumers and that have also started to do so via the
internet
2. Companies that only supplied through intermediaries, but now also directly to the
Consumers, like media market.
3. Companies that sell exclusively via the internet, such as bol.com
There are also companies that started online but later also started physical stores, such as
the very successful cool blue. Apparently, some companies only think online sales of
products does not work sufficiently.
, Analysis of a brand's distribution intensity
The distribution intensity of a brand refers to its position within a level in it
distribution channel. For this reason, we count the distribution intensity analysis as one
analysis at meso level.
The following measures are generally used to measure position in the physical distribution
channel used:
- The unweighted (numerical) distribution: the percentage of stores where the brand is
available.
- The weighted distribution: the market share in the product group of the stores where the
brand available, or the coverage the market, also called the market reach.
- The selection indicator: this is the average turnover in the product category, at stores where
the brand is present, shared the product category.
If the selection indicator is greater than one, the brand will be in relatively large stores and vice
versa. The selection indicator can also be calculated by dividing the weighted distribution
by the unweighted distribution.
Retailer analysis:
, 1. The importance and role of the retailer
2. The position of the manufacturer’s brand at the retailer
3. The objectives, strategy and wishes of the retailer
4. The strenghts and weaknesses, and the expected strategy of the retailer
Analysis of suppliers
The following questions are answered:
• Which needs within the company have to be met?
• Which supplier can best provide for that need?
– Quality: the concrete characteristics of the products
– Price (potential discounts, etc.)
– Service
Chapter 9 SWOT analysis
First, we define what we mean by strengths, weaknesses, opportunities and threats.
A good definition of this is necessary, because otherwise determining it can lead to
misunderstandings.
We consider three properties:
1. The difference between strengths and weaknesses on the one hand and opportunities and
threats on the other.
Strengths and weaknesses are always internal: they relate to the brand for which a
marketing plan is made. Opportunities and threats are external: they relate to
the environment and would also exist if the relevant brand were not there. So is
a strong brand image is a strength, not an opportunity. Despite that from the customer analysis
arises.
2. The difference between an opportunity and a threat. An opportunity is a positive
development if policy remains unchanged and a threat a negative development.
3. The difference between opportunities and strategies. One difference between opportunities
and strategies is that a strategy is something a brand does and an opportunity isn't.
Main steps in the SWOT-analysis
• Summarize the situation analysis in a limited number of issues
• Define the vision and the main challenge (‘core problem’):
what is important (trends?) in the environment of the brand?
• The choice of the value strategy (if not defined yet)
• Discuss the future positioning of the brand.
Formulate business opportunities: the strategic options
• Select an option
When setting up a distribution analysis, three types of decisions must be made:
1. The choice of distribution intensity (objective)
2. The choice of the distribution channel
3. The management of the distribution channel
A distribution analysis takes place on three aggregation levels:
1. Macro level: Macro level is about mapping the entire distribution column, both vertical and
horizontal. So, this is global distribution structure. The analysis forms the input for the
choice of the distribution channel.
2. Meso level: the meso level concerns the more specific distribution structure within one type
of intermediate link. For example, the distribution of power within the type of supermarkets.
It may also concern the position of brands within the group of retailers. (analysis of the
distribution intensity.
3. Micro level: the micro level is about the strategies and wishes and desires of individual
distributors (distributor analysis). Be with separate distributors here mainly separate retail
chains, such as the Jumbo. So it is not about separate distribution points, because a chain
consists of several stores.
The analysis of the distribution structure at the macro level involves two dimensions:
1. The number of levels in the distribution column (vertical: length of the channel)
2. The type of intermediaries within one level, such as within the group of retailers distinction
between supermarkets, discounters, convenience stores, specialty stores or the "gray
“circuit 'of petrol pumps, for example.
Direct delivery takes place to customers without the use of intermediaries; this includes all
trade of producers via the Internet. Online sales are on the rise.
Intermediaries are called in for indirect delivery. Possible intermediaries between
products and consumers are: agents, importers, wholesalers and retailers. If you choose the
delivery via retailers only, we speak of a short channel.
In all other cases is a long channel. Some of the selection criteria here are the number of customers
that the company wishes to operate and the type of product.
Incidentally, there is not necessarily one channel to be chosen; combinations are also possible, for
example if the company is both active in an industrial as well as a consumer market. Or when an
organization has both directly and through intermediaries. In this case, there is a multichannel
strategy.
The Internet has become an indispensable sales channel. Online shopping is booming. There
are three types of companies that do this:
1. Companies that already supplied to consumers and that have also started to do so via the
internet
2. Companies that only supplied through intermediaries, but now also directly to the
Consumers, like media market.
3. Companies that sell exclusively via the internet, such as bol.com
There are also companies that started online but later also started physical stores, such as
the very successful cool blue. Apparently, some companies only think online sales of
products does not work sufficiently.
, Analysis of a brand's distribution intensity
The distribution intensity of a brand refers to its position within a level in it
distribution channel. For this reason, we count the distribution intensity analysis as one
analysis at meso level.
The following measures are generally used to measure position in the physical distribution
channel used:
- The unweighted (numerical) distribution: the percentage of stores where the brand is
available.
- The weighted distribution: the market share in the product group of the stores where the
brand available, or the coverage the market, also called the market reach.
- The selection indicator: this is the average turnover in the product category, at stores where
the brand is present, shared the product category.
If the selection indicator is greater than one, the brand will be in relatively large stores and vice
versa. The selection indicator can also be calculated by dividing the weighted distribution
by the unweighted distribution.
Retailer analysis:
, 1. The importance and role of the retailer
2. The position of the manufacturer’s brand at the retailer
3. The objectives, strategy and wishes of the retailer
4. The strenghts and weaknesses, and the expected strategy of the retailer
Analysis of suppliers
The following questions are answered:
• Which needs within the company have to be met?
• Which supplier can best provide for that need?
– Quality: the concrete characteristics of the products
– Price (potential discounts, etc.)
– Service
Chapter 9 SWOT analysis
First, we define what we mean by strengths, weaknesses, opportunities and threats.
A good definition of this is necessary, because otherwise determining it can lead to
misunderstandings.
We consider three properties:
1. The difference between strengths and weaknesses on the one hand and opportunities and
threats on the other.
Strengths and weaknesses are always internal: they relate to the brand for which a
marketing plan is made. Opportunities and threats are external: they relate to
the environment and would also exist if the relevant brand were not there. So is
a strong brand image is a strength, not an opportunity. Despite that from the customer analysis
arises.
2. The difference between an opportunity and a threat. An opportunity is a positive
development if policy remains unchanged and a threat a negative development.
3. The difference between opportunities and strategies. One difference between opportunities
and strategies is that a strategy is something a brand does and an opportunity isn't.
Main steps in the SWOT-analysis
• Summarize the situation analysis in a limited number of issues
• Define the vision and the main challenge (‘core problem’):
what is important (trends?) in the environment of the brand?
• The choice of the value strategy (if not defined yet)
• Discuss the future positioning of the brand.
Formulate business opportunities: the strategic options
• Select an option
