Wednesday 27 August 2014

The Distribution Strategy



The place or the distribution strategy of a good involves the entire process of making a product or service available for the purpose of consumption to the consumer by direct or indirect ways. Direct ways mean that the producer is directly approaching the final consumer of the product, while indirect means that the producer is reaching the final consumer through various intermediaries.


ITC has a wide distribution channel, because of which it has a high market penetration. ITC cigarettes are available in all kinds of stores in urban and rural regions. As distribution was their strength, they decided to use it to their advantage and other FMCG products such as Sunfeast biscuits and Bingo Chips became a part of that distribution network. Now, ITC products are available in all forms of convenience stores, from “hole in the wall” paan and beedi stores to organized retail stores across the country.




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