Always is a brand of feminine hygiene products, including maxi pads, pantiliners, and feminine wipes, produced by Procter & Gamble. It was released in 1983. Always is sold under the name Whisper in Japan, Singapore, India, China, South Korea, Philippines, Pakistan, Thailand and Indonesia, under the name Lines in Italy, under the name Orchid in Turkey, under the name Evax and Ausonia in Spain. Procter & Gamble has global leading position in manufacturing and commercializing feminine hygiene products.
Distribution Strategy
As the value-added increases, the cost of transaction also increases
Direct marketing channels—low value-added; low cost of transactions e.g. e-commerce, telemarketing
Indirect marketing channels—medium value-added; medium cost of transactions e.g. retail stores, distributors
Direct sales channels—high value-added; high cost of transactions e.g. own sales force
Traditional means of achieving competitive advantage is through products but can be easily copied
Low-cost as a competitive advantage
Also suffer from sustainability
Brands as competitive advantage
Only if you are a strong brand
Tabulate channel selection to key buying criteria. It Provides flexible Identify customers’ channel preferences and buying behavior annel options. Monitor (and respond to) changes in buying behavior
It uses three distribution strategies
1)Exclusive Distribution = Limiting the distribution to only one intermediary in the territory
2)Intensive distribution = Distribute from as many outlets as possible to provide location convenience
3)Selective distribution = Appoint several but not all retailers
Exclusive Distribution
1)Limiting the distribution to only one intermediary in the territory
2)Intensive distribution
3)Distribute from as many outlets as possible to provide location convenience
4)Selective distribution
Appoint several
Advantages of Exclusive distribution
1)Maximize control over service level/output
2)Enhance product’s image & allow higher markups
3)Promotes dealers loyalty, better forecasting, better inventory and merchandising control
4)Restricts resellers from carrying competing brands
Disadvantages
1)Betting on one dealer in each market
2)Only suitable for high price, high margin, and low volume products
Advantages of Intensive distribution
1)Increased sales, wider customer recognition, and impulse buying
Disadvantages:
1)Characteristically low price and low-margin products that require a fast turnover
2)Difficult to control large number of retailers
Advantages of Selective distribution
1)Better market coverage than exclusive distribution
2)More control and less cost than intensive distribution
3)Concentrate effort on few productive outlets
4)Selected firms capable of carrying full product line and provide the required service
Disadvantages
1)May not cover the market adequately
2)Difficult to select dealers (retailers) that can match your requirement and goals
It modifies its distribution strategies when the following changes occur:
1)Consumer markets and buying habits
2)Customer needs
3)Competitor’s perspectives
4)Relative importance of outlet types
5)Manufacturer’s financial strength
6)Sales volume level of existing products, and
7)The marketing mix
Distribution Strategy
As the value-added increases, the cost of transaction also increases
Direct marketing channels—low value-added; low cost of transactions e.g. e-commerce, telemarketing
Indirect marketing channels—medium value-added; medium cost of transactions e.g. retail stores, distributors
Direct sales channels—high value-added; high cost of transactions e.g. own sales force
Traditional means of achieving competitive advantage is through products but can be easily copied
Low-cost as a competitive advantage
Also suffer from sustainability
Brands as competitive advantage
Only if you are a strong brand
Tabulate channel selection to key buying criteria. It Provides flexible Identify customers’ channel preferences and buying behavior annel options. Monitor (and respond to) changes in buying behavior
It uses three distribution strategies
1)Exclusive Distribution = Limiting the distribution to only one intermediary in the territory
2)Intensive distribution = Distribute from as many outlets as possible to provide location convenience
3)Selective distribution = Appoint several but not all retailers
Exclusive Distribution
1)Limiting the distribution to only one intermediary in the territory
2)Intensive distribution
3)Distribute from as many outlets as possible to provide location convenience
4)Selective distribution
Appoint several
Advantages of Exclusive distribution
1)Maximize control over service level/output
2)Enhance product’s image & allow higher markups
3)Promotes dealers loyalty, better forecasting, better inventory and merchandising control
4)Restricts resellers from carrying competing brands
Disadvantages
1)Betting on one dealer in each market
2)Only suitable for high price, high margin, and low volume products
Advantages of Intensive distribution
1)Increased sales, wider customer recognition, and impulse buying
Disadvantages:
1)Characteristically low price and low-margin products that require a fast turnover
2)Difficult to control large number of retailers
Advantages of Selective distribution
1)Better market coverage than exclusive distribution
2)More control and less cost than intensive distribution
3)Concentrate effort on few productive outlets
4)Selected firms capable of carrying full product line and provide the required service
Disadvantages
1)May not cover the market adequately
2)Difficult to select dealers (retailers) that can match your requirement and goals
It modifies its distribution strategies when the following changes occur:
1)Consumer markets and buying habits
2)Customer needs
3)Competitor’s perspectives
4)Relative importance of outlet types
5)Manufacturer’s financial strength
6)Sales volume level of existing products, and
7)The marketing mix
Last edited: