Distribution Channel Consultancy Report for Driza-Bone Garments

This report provides a consultancy analysis of Driza-Bone's distribution strategies, focusing on the launch of their new trench coat garments. It begins by outlining the main distribution tasks, emphasizing the importance of academic and industry research, and effective channel management, including the role of intermediaries and making products available through both physical stores and e-commerce. The report then explores alternative channel structures, discussing the positioning of entities within the channel, price discrimination, and the impact of intermediaries on costs. It also presents a bargaining theory of distribution channels, examining levels, intensity, and intermediaries like sales agents, wholesalers, distributors, and retailers. The report further evaluates the pros and cons of different distribution channels, considering factors like product delivery, availability, and the impact of channel members on customer satisfaction and sales. The report concludes by providing insights into optimizing distribution for maximizing sales and market reach.

Consultancy for
distribution of a company

TABLE OF CONTENTS
1.) Main distribution tasks of DRIZA-BONE..................................................................................3
2.) Alternative channel structures....................................................................................................4
References........................................................................................................................................7

1.) MAIN DISTRIBUTION TASKS OF DRIZA-BONE
In order for launching a whole new range of garments within the market Driza Bone
should follow and make use of relevant academic & industry research (Boiteux and Allen, 2016).
Keeping this in mind, they need to accordingly carry out their distribution channels for their new
product launch (Trench Coats).
Distribution channels
(manufacturer ->wholesaler-> retailer-> consumer)
This will play an important role in emphasizing the delivery of new range of products to
the market. So Driza-Bone needs to set up their channels in a more effective manner for
distributing their new range of garments that is the Trench Coats. They need to build up a strong
relationship between the intermediaries.
Making product available to customers : The new range of garments for example coats by Driza
Bone could be made available to customers in two ways :-
1. The customers can directly go to the store where the product would be made available
directly for purchase (Cao and et.al., 2014). In order for directly purchasing from the
store, the customers should be provided the flexibility of digital technology such as credit
card for paying the amount.
Illustration 1: Logo of Driza Bone
(Source: Drizabone slouch hat main, 2013)

2. The company can modify its e-commerce website for making available the product to
customers. Once the order is placed, home delivery could be done. The website should be
properly maintained in order to offer the customers aid of choosing as per their choices.
In order for proper maintenance of channel for launching and carrying out initial sales of
coats by Driza Bone, a team shall be given the task of special handling of the new products. The
team should effectively communicate with higher authorities in case of any modification and
issues faced. In case of distribution channels, for launching of the coats by the Driza bone,
special handling is required especially in the area of transportation. Furthermore, when the
products are being transferred from one place to another, special care needs to be taken about the
quality of the material. The product's quality should not be affected during the process of
manufacturing. Moreover, special handling of the packaging process also needs to be taken. The
company should not be affected due to any flaws occurring in the manufacturing process. They
must be well handled and prices shall be maintained as well.
2.) ALTERNATIVE CHANNEL STRUCTURES
Development of new marketing plan and strategies will help Driza Bone in effectively
earning profits in their product's sales. If it is able to successfully plan out an efficient strategy
then, Driza Bone would be able to extract every possible benefit from the new market
opportunities (Liu and et.al., 2016).
The methodology adopted by a particular organization for example Driza bone, in order
to formulate their distribution channels overall affects their sales of the new products and
associated profits as well. It is the sole and direct pathway existing between the individual's
business and consumers. With particular reference to the Driza Bone, the creation of this direct
pathway could be based upon the following theory : Positioning each entity involved in the channel :The distribution channel accounts to be
the simplest connection through which the product is made available to the customers.
For example, Driza Bone can supply their raw materials to a particular manufacturer
which further ships to the wholesaler and further leads to the retailer. This retailer is
responsible for delivering the product to the consumer.
Manufacturer – supplier – retailer – consumer

The manufacturer is the one who decides the actual costings of the product to be
delivered to the customer. The further existing channel members add up their extyra costings to
the product for its further delivery to the customers. This way the final product received by the
customer is of very higher cost.
 Discriminating price : If the prices in the middle are too high, this might lead to the
disappearing of the buyers. For example, if the retailer sells the coat by Driza Bone at a
much higher rate than the one set by manufacturer, this could lead to discrimination of
product from customer's side thereby discriminating the price.
The presence of such an ample amount of channel intermediaries leads to increased costs
of the final product received by the customer. However, this accounts to be highly beneficial in
handling of the product in terms of maintaining its quality.
Moreover, the distribution channels should be formulated such that effective and
profitable sales could be achieved by Driza Bone. The bargaining theory of distribution channels
could emerge out to be quite beneficial in which the associated entities can demand for adding up
of extra costs. Based upon this theory following specifications could be formulated :
a.) No. of levels : The distributor, intermediaries and consumers are the three levels. The
distributor will be responsible for actual price of the product. They will sell the product at the
original rates. Furthermore the intermediaries will add up their further costs to the products as it
goes down by every level. The consumers then receive the finished product at a rate which will
not be equal to the one decided by distributor. The costing will be different at each level.
b.) Intensity : For launching the coat Driza bone should try to increase the intensity
between distributor and consumer so that customers can easily purchase their product on
need. Increasing the intensity among distributor and customers will ensure that customers
do not have to pay additional costings that add up when undergoing through various levels.
Purchasing the product directly from distributor will aid customer in making purchase directly at
original rates.
c.) Intermediaries : Driza Bone will imply 4 basic intermediaries and they are sales
agents, wholesalers, distributors and retailers. Sales agents are responsible for distribution
of sales associated with particular products to consumers and investors. Wholesalers will make
the product available directly to customers at a much lower rate.

Distributors are the responsible entities for deciding the actual pricing of products. Retailers are
the stores that will allow easy purchasing of products with reference to Driza bone either in-store
or online.
This new range of garments that is the coat could be made available through more that
just inline and online facilities. The consumers shall be aided the facility of directly purchasing
the product from the wholesaler itself.
Pros & cons of alternative channels for distribution :Customers analyzes the product on the
basis of its delivery, availability and many more factors (Davidson and et.al., 2016). All these
are directly influenced by channel members.
Pros : Specialized in every task performed by distribution channel, makes them do their tasks at
lower costings. Furthermore, the time taken for delivery of product to the customer is also
reduced to a much larger extent. Accumulation and assorting of services with specific reference
to the coat by Driza bone is achieved through distribution channels. Also, the re-sellers provide
the aid of boosting up the initial sales of new product range.
Cons : The involvement of intermediaries at Driza Bone will cause revenue losses because
manufacturer will have to directly sell the product at much lower rate. This further leads to loss
of control over existing communication among various existing levels.

REFERENCES
BOOKS AND JOURNALS
Boiteux, C. and Allen, T.W., 2016. Chapter Six-Understanding Sodium Channel Function and
Modulation Using Atomistic Simulations of Bacterial Channel Structures. Current
topics in membranes, 78. pp.145-182.
Cao, G., and et.al., 2014. A review of the performance of different ventilation and airflow
distribution systems in buildings. Building and Environment, 73. pp.171-186.
Davidson, C., and et.al., 2016. Global Engagement, Complex Tasks and the Distribution of
Occupational Employment. Review of International Economics, 24(4). pp.717-
736.
Liu, X., and et.al., 2016. Time–frequency distribution properties of event-related potentials in
mental fatigue induced by visual memory tasks. NeuroReport, 27(14). pp.1031-
1036.
ONLINE
Drizabone slouch hat main, 2013. [Online]. Available through
:<https://cdn.australiangear.com/media/catalog/product/cache/5/image/650x/
040ec09b1e35df139433887a97daa66f/d/r/drizabone_logo>. [Available on : 19th
May 2017].