What Are Distribution Channels?
Direct Vs. Indirect
Direct Distribution Channels is a situation in which the producer sells a product directly to a consumer without the help of intermediaries. On the other hand, Indirect Distribution Channels involves a product taking other steps as it moves from the manufacturing business by intermediaries distributors to wholesalers and then eventually retail stores. Both channels have both positives and negatives, and it is up to managers and others within corporate to find the most effective channel, or combination of channels, to most effectively meet their consumers needs.
Maverik Lacrosse's Distribution Channel
As I stated before, companies such as Maverik are responsible for coming up with which method of distribution would reach their customers the best. For a majority of the product Maverik sells, they use the Indirect Distribution Channel to reach their customers. Instead of purchasing equipment straight from Maverik's website, consumers visit online distributors such as Lax.com or Lacrossemonkey.com, or stores like Lacrosse Unlimited to purchase all their Maverik Gear. The reason Maverik uses this distribution channel is exemplified well in my job with them.
As a Marketing Representative for Maverik Lacrosse, My job is to set up a tent and trailer at different lacrosse tournaments around the east coast, displaying and marketing product to consumers who interact with us. Since Maverik doesn't directly sell gear to the public, we do not sell directly from our tent. Instead, at every tournament we set up at, we have a specific retail partner who sells a lot of the equipment we have on display. In my opinion, this is a very successful strategy because the company avoids having to keep a large amount of inventory in the truck, and meanwhile, Marketing representatives like my coworkers and I, can focus on delivering the brand name, instead of just selling units.
Although Maverik only sells gear and apparel through online distributors to the public, they use the Direct Distribution Channel when they do team orders for collegiate, high school, or club programs. Maverik has a team of workers who deal with these orders directly, so when my team at Saint Michael's did a team order of Maverik gloves, our coach dealer directly with a team sales representative, and we got the gloves directly from them. Other teams like my little brother's club travel team order team orders of apparel, jerseys, gloves, and even shafts directly from Maverik. This makes it much faster and easier without an intermediary of an indirect distribution channel because the order goes directly to them, and they don't have to waste time with another retailer.
No comments:
Post a Comment