Buy essay on P&G distribution strategies

Any company is seeking to increase its profits. Sales growth is one way of achieving this goal. To increase sales volumes companies make marketing research, organize exhibitions and form solid advertising budgets. However, efforts could be wasted if not found an effective method of sales and effective method of distribution.
Distribution is one of the elements of marketing. Sales policy of enterprises, firms involves the use of multiple channels of distribution. Selection of the best (optimal) distribution channels for goods depends on many factors. According to the concept of marketing, the factors associated with this choice should be first and foremost the needs and convenience of the consumer. It is recognized that there is no single “best” channel of distribution for all manufacturers producing goods of one group. (Ross 2004)
Sales of products in most cases is conducted through intermediaries, each of which generates the appropriate channel of distribution. Why the producers shift part of the sales of goods on the shoulders of intermediaries? After all, as a result of such action producer can not completely control who and how the sale of its products. Nevertheless, using his connections and experience, the advantages of specialization, mediators can often bring a brand more benefits than in the case of ownership of the marketing of their products.
The channel of distribution – this is the way in which goods move from producers to consumers. Thanks to this the long lapse of time, place and ownership is removed, that separated the goods and services from those who would like to use them. (Ross 2004)
The concept of distribution channels includes not only the distribution of physical goods. Products services and ideas are also faced with the problem of ensuring the availability of its proposals for the target audiences. (Ross 2004)
Today, the company P & G clearly understands: to compete successfully, it needs to know its customers, their needs, habits and, most importantly, to make its product as accessible as possible for them. For the effective promotion of the goods it is not always sufficient to develop an excellent promotional campaign (above the line). Last chance to tell the buyer about the product and to provide him the opportunity to buy the product – is only at points of sale (merchandising, tasting, promotions in the sales area-below the line). And this chance must not be missed.
In turn, this approach means bringing together the efforts of different tactics of distribution to achieve the best results of sales.
Nowadays a new trend began to change the distribution of goods because of shortage of free time of consumers. Today, many of us are very busy and this is reflected in the very choice of our places where we buy products. Saving time is not less important than saving money. And the typical consumer now visit by one, in rare cases, two stores. Therefore, nowadays are popular shopping malls where the buyer can make a different purchase, without leaving a relatively small territory of the center.
Recent studies show that the main factor influencing consumer choice, is the ease and speed of access to goods and services. Therefore, an important fact of life is the emergence of online shopping, thanks to which we can do shopping 7 days a week, 24 hours a day, without leaving home. All these facts indicate that the importance of distribution channels varies depending on the method of consuming and free time.
So the company P & G decided to distribute products through the so-called “click-and-pick” shops. Using “click-and-pick” as a channel of distribution is achieved through technology of electronic commerce or electronic commerce, which is beneficial to all market participants. That enables P&G to direct with a new distribution channel to expand market for goods and services.
“Click-and-pick” is an opportunity to avoid the use of intermediary organizations by automating processes for the collection of orders, making payments, maintaining customer database that allows: to investigate conditions on the commodity market; to determine supply and demand for specific types of goods and to support communication with consumers, etc.
In addition, the obvious benefits of “click-and-pick” solution for buyers, because there is a reduction of the final price of goods due to the cost of intermediary organizations, which under the traditional sales techniques can be 50% or more. Also, customers get more choices.
“Click-and pick” strategy can provide a very high level of sales, but the most effective this method is demonstrating in combination with other marketing strategies: effective advertising, promotion and pricing for products.
Conclusion
In this paper, we have identified the relevance and benefits of using new distribution channels for goods of company P & G, as a new distribution strategy and promotion of goods and services. The study has helped to articulate the main directions of the new channel for the company, as well as to trace new directions in this field.
It is important to say that “click-and-pick” took a place among the tools of marketing, and was a new distribution channel that we think will have a lot of benefits. For the consumer, it also has its benefits in terms of selecting a suitable product at any time and at lower prices.

 
References
Cohen, W. A. (1991). The Practice of Marketing Management. New York: Macmillan.
Ross, D. (2004). Distribution Planning and Control: Managing in the Era of Supply Chain Management. 2nd ed. Boston: Kluwer Academic Publishers,
Raymond M. (2003). Organizational Strategy, Structure, and Process. Stanford: Stanford University Press.