Tuesday, January 29, 2019

Distribution Research

Distribution Models are the manner in which goods move from the manufacturer to the outlet where the consumer purchases it. The traditional distribution model has three levels: the producer, the wholesaler and the retailer. In some occasions many successful companies sometimes rely on directly going from producer to consumer (retailer) due to financial managing situations (budgeting) or their product simply does not need special intermediate companies.
In the case of the most popular Women's magazine in the UK Cosmopolitan, after launching their product they realized their competition wasn't enough to catch their audience attention because of being in a similar market as other companies that already had an empirical dynasty and were widely known by the public. Therefore, the Cosmopolitan company decided to make the first move by deeper analyzing their audience, what people found more interesting that other competitions didn't (concentrated on the consumer's wants.) After leaning towards this approach they relied on consumers buying Cosmopolitan magazines in the traditional newsagents and supermarket shelves and changing their distribution model by reducing the price and reliance on gifting. However, after increased content consumer consumption they decided that the adjustments were successful and as their product and company grew they were able to increase prices up to the original ones and hire more staff.
Following the steps of such successful company. My product were to be inaugurated in an original affordable price that will allow for it to pay the costs of the three traditional levels of distribution. However, if the product  were to no be successful I would then advice to primarily overview the information or content composing the magazine then if that is proven to not be the problem, lowering the price, cut down the staff and possibly get rid of a level of distribution would be the secondary plan.
Image result for cosmopolitan in supermarket shelves

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