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Unit 29: Understanding retailing - P2,M2,D1
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Unit 29; understand retailing
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In this assignment I'll be explaining the process of distributing good throughdifferent channels from the manufacturer to the customer. Secondly I'll be
comparing the methods used to distribute products and services. Lastly I'll be
evaluating the distribution systems in delivering good and services for a selected
organization which is Pizza Hut.
Distribution is concerned with getting a product or service to the right people, at the
right time, taking into consideration the need for profit time and efficiency. If a
customer purchased a product it's either from business or through a retailer or
wholesaler. These ways are known as distribution channels. There are many ways
which the goods go through the distribution channel right towards the customers.
As you can see above there's 3 ways which the products goes through to reach to
the final journey which is the customer. They're called direct channel, retail channel
and wholesaler channel.
When getting the product from the manufacturer to the customers, there are
various ways the products can go through. It can go straight to the customer; it can
go to the retailer, which is usually owned by the manufacturer and then customers
buy it from the retailer; it can go from manufacturer to a wholesaler who offers
advice and then to a retail shop before it reaches a customer; the last way is a
product going from the manufacturer to a wholesaler to an agent who represent the
manufacturer, retailer or wholesaler and then it goes to a retail shop where the
customer can buy the good. Also the stages between the manufacturer and
customer are called intermediaries.
Some manufacturers decide to sell their products in bulk to a wholesaler, who will
then distribute the products in smaller amounts to a retail store. This allows the
product to reach a higher number of customers. Quite often wholesaler offer
services such as labeling or packaging. As mentioned before, the wholesaler has
three options on how to distribute the products; straight to a customer; to retailers;
to agents.
As for retail control of the supply chain there is own brands and eRetailing to be
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