abhishreshthaa
Abhijeet S
Distribution structure
The distribution structure of the international market will also determine the products price.
Within each market, there will be different structures, which provide differing levels of supplier and buyer power influencing the flexibility of the pricing decision.
For instance, the distribution structure of the frozen ready meal market in Germany is a major determinant on pricing.
Sales via discount outlets have tended to grow over the past few years and cut into sales via smaller supermarkets and traditional food retailers.
This increasing trend towards discounters such as Aldi is a strong determinant of price, and certainly in many cases, a deterrent.
Distributors in the Australian wine industry, which are predominantly speciality retail wine outlets and outlets at vineyards offer a high degree of customer service in order to captivate custom from the higher end of the economic scale.
This is achieved through inviting the customer to sample the product, supported by superb product knowledge offered by staff.
The market structure is a major determinant permitting the high pricing of products.