Home Solutions Comparison between Distribution Strategy for Automobiles and Jewelry
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According to Rosenbloom (2013), automobiles manufacturers commonly use exclusive distribution strategies in delivering their products in the market. This strategy entails concentrating the distribution of their products to one particular outlet. This is because automobile products have got a high price and requires and requires a strong intermediary to provide detailed information about the product to the consumers. This in turn promotes high sales for the product. Automobile manufactures cannot qualify for a direct channel distribution. They must involve dealers in distributing their products and making sure that their products gets the desired attention from the prospective consumers. Rosenbloom (2013) argues that the market structure of the automobile industry limits the manufacturers from directly providing the customers with their products. Most automobile companies utilize a distribution channel with only one intermediary. One particular advantage of using this strategy of distribution is that it relieves the manufacturer the trouble of personally selling the goods to the consumer. The manufacturer usually concentrates with production but is also in a position to control the distribution process. The disadvantage of this strategy is that it attracts a higher cost than other higher level distribution channels.
Distribution Strategy for Jewelry
Rosenbloom (2013) highlights that jewelry manufacturer’s use intensive distribution strategy. Intensive strategy of distribution may be used for lowly priced jewelry products. This is where the manufacturer uses numerous outlets to sell its products. This strategy is used to make sure that the product is widely circulated in the market. Jewelry products are found in many points of sale such as shopping malls, supermarkets, shops and stalls among others. The existence of numerous brand types in the case of jewelries forces the manufacturers to utilize this strategy. Where a certain brand is not available the consumer may decide to by another similar one. Most jewelry manufacturing companies utilize the two intermediaries’ channel of distribution comprising of wholesaler and retailer. Some types of jewelry are however very expensive and their manufacturers may use exclusive distribution strategy. This may be in order to reduce the risks involved. One of the advantages accrued from this distribution strategy is that it enables low priced products to access the market at a low cost.
Comparison between Distribution Strategy for Automobiles and Jewelry
Automobiles and Jewelries have been observed to utilize different distribution strategies. This is because of different nature of the products…
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