Distribution Channels for Packaged Food Products: A Detailed Report

This report delves into the channels of distribution for packaged food products, examining the crucial role of distribution in the marketing mix. The report proposes a four-tier distribution channel: manufacturer, distributor, retailer, and customer. It emphasizes the importance of distributors due to their specialized local market knowledge, enabling efficient product distribution and allowing manufacturers to focus on product quality. The report discusses the rationale for this structure, the implementation of push and pull promotional strategies, and the processes involved in product manufacturing and distribution. It also explores the expectations of channel members, such as discounts and quality products, and suggests ways to meet these expectations to ensure effective sales performance and strong relationships within the distribution network. The report concludes by highlighting the benefits of this distribution model for both the manufacturer and the end consumer.

Running head: CHANNELS OF DISTRIBUTION
CHANNELS OF DISTRIBUTION
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Introduction
Distribution is also considered to be a place variable, which is an element of
marketing mix. Distribution channels involve reaching the manufactured products to the end
users. Distribution channels are highly essential factor in the market, however, many retailers
or companies tend to ignore the distribution element of marketing the products and services.
In today’s technologically advanced business environment, companies prefer ‘direct
distribution channels’ and ‘eliminating the middleman’ (Gilliland & Kim, 2014). However,
there are arguments that the intermediaries increase the efficiency of the products as they
perform specialized task on the products as it reaches to the consumers. The purpose of this
report is to determine the channels of the distribution for the chosen product: packaged food
products. It provides suitable channel for distributing the product and the rationale for the
structure.
Channels of distribution structure
In order to ensure that the customers are served adequately and entertained
effectively, the organization plans to distribute the products through distributors. The
manufacturers of the food products will be hiring a distributor to distribute the products to the
end users. The manufacturer’s food products will be sold to the distributor who purchases the
products, stores them and finally sells them through a distribution channels (Harvey,
Kiessling & Akdeniz, 2014). The distributors lie between the manufacturer and retailers and
finally the consumers. The selected local distributor will be working in behave of the

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business organization. The manufactured food products will be sold to the distributors who in
turn will distribute the products among the retailers or departmental stores who in turn will
sell the products in smaller quantities to the consumers in the market (Harvey, Kiessling &
Akdeniz, 2014). The disturbers will act as middle men who will provide specialized services
on behalf of the customers. The distributors have specialized knowledge about the local
retailers in the market, and distribute the products among selected retailers which will be
more saleable to the customers.
Rationale for the selected structure
The distributors act as wholesalers who can undertake additional responsibility for
distributing the products among the retailers. The company can get specialized service from
the distributors who will manage the orders and also perform the function of sales
representative (Rehme et al., 2016). The distributors of the business organization will freed
the business organization from these additional responsibilities of performing marketing
analyzes and searching for new opportunities in order to attain effective sales performance.
The distributor has the ability to focus on a particular market area which has relater potential
for sales. This will enable the business organization to cultivate string relationship with the
manufacturers and the customers (Tamilia, 2016). The chosen distributor must have stronger
affiliation from the business organization. They will take the responsibility to ensure that the
products and sold. This will enable the manufacturer to focus on its operational activity and
quality of the food products.
Promotion of the product to consumers

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The business organization might implement push and pull strategy as promotional
routes to the market. It involves pushing the products to the customers and pulling the
product through retailers towards the customers (Tamilia, 2016). In order to promote the
products to the next level of distribution channel the business organization will be
implemented a combination of promotional mix strategies such as representing the
manufacturers at trade shows, the company will make sales visits to retailers, point of sales
display to make it easier for the retailers to stock the products. The manufacturer will be
using videos to demonstrate the benefits of the food products offered. These efforts will
enable the organization to push the products among the channels of distribution (Watson IV
et al., 2015). As a pull strategy, the business organization will be implementing tactics which
will make the customers demand more for the products offered by the business organization.
The company will be taking into consideration various online advertising tactics, viral
marketing (word of mouth), email marketing, and blogging. It will also implement social
media marketing such as putting advertisements on Facebook (Watson IV et al., 2015). The
ads can be shared among the family and friends group of the target audience and influence
people to purchase the products offered by the business organization.
Process of product manufacturing and distributing to next level
The manufacturer will produce the food products with outmost care and efficiency.
The manufacturer products are then sold to the distributors who in turn sell in bulk to the
retailers in large quantities where the products will be better sold. The retailers will provide
the products in smaller quantities to the customers (Winer, Ravi & Mosca, 2013). There will
be no storing of products in the warehouse as the products are perishable in nature. The
distributors will be distributing the products to the retailers. The distributor will be focusing

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on specific area and market in which the products have higher chances of getting sold. The
responsibility of ensuring sales is on the distributor, hence, the manufacturer can focus on
ensuring quality and quantity to meet the demands of the customers (Zhou et al., 2015).
Expectations of the channel members and ways to accomplish it
It is the role of the manufacturer to provide high quality products and services so as to
maintain the reputation of the company as well as the distributor distributing the products and
services (Harvey, Kiessling & Akdeniz, 2014). The distributor is expertise in acquiring the
finished products and reaching them to the market. They establish an agreement with the
retailers and replenish the orders at stores. Therefore the distributor and the retailer are
dependent on the products manufactured by the manufacturer (Rehme et al., 2016). The
distributors purchase the products from the manufacturers in large quantities and undertake
full responsibility of reaching the products to the markets. Therefore they expect discounts
and other offers from the manufacturers. In order to accomplish the expectations of the
distributors and the retailers, the company might offer the products at a stipulated cost.
Conclusion
Therefore, at identified in the report, the business organization will be incorporating a
four tier distribution channel that is manufacturer, distributors, retailer and customers. The
distributions are specialized in local marketing knowledge. Hence they can help the
organization in distributing the products in an efficient and effective manner. The
organization can focus on quality and quantity of the products.

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References
Gilliland, D. I., & Kim, S. K. (2014). When do incentives work in channels of
distribution?. Journal of the Academy of Marketing Science, 42(4), 361-379.
Harvey, M., Kiessling, T., & Akdeniz, L. (2014). The evolving role of supply chain managers
in global channels of distribution and logistics systems. International Journal of
Physical Distribution & Logistics Management.
Rehme, J., Nordigården, D., Ellström, D., & Chicksand, D. (2016). Power in distribution
channels—Supplier assortment strategy for balancing power. Industrial Marketing
Management, 54, 176-187.
Tamilia, R. D. (2016). History of channels of distribution. In The Routledge Companion to
Marketing History (pp. 197-226). Routledge.
Watson IV, G. F., Worm, S., Palmatier, R. W., & Ganesan, S. (2015). The evolution of
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Winer, R. S., Ravi, D., & Mosca, F. (2013). Marketing management (pp. 1-638). Apogeo.
Zhou, Y., Zhang, X., Zhuang, G., & Zhou, N. (2015). Relational norms and collaborative
activities: roles in reducing opportunism in marketing channels. Industrial Marketing
Management, 46, 147-159.