Distribution Channels

In this essay, the author will conduct an analysis of the McCambridge Company on one of their products, Stoneground whole wheat brown bread.

Firstly I will provide an analysis of the distribution channels the company could use. Then I will design a communications campaign for the stoneground whole wheat brown bread. Finally I will explain several factors that could influence the pricing decision of McCambridge Irish Stoneground Whole wheat brown bread. I will also conclude each topic with a small summary. I will then finish my analysis of the McCambridge Company with a conclusion of all three topics.

A distribution channel, also known as a marketing channel, is how a company provides their goods to their target market. Most Companies do not sell their goods directly to consumers. They sell through intermediaries and these intermediaries constitute a distribution channel. Profits can be impacted depending on the number of channels used. There is potential for conflict when multiple channels are used. The fewer amounts of levels a company uses to supply their goods, the more effective it is to achieve aims. This is also more profitable.

McCambridge Limited could use a level one distribution channel. This means, their product would go from the producer, to a retailer and it would then be sold to consumers. They could also use a level two distribution channel. This means, their product would go from a producer, to a wholesaler, the wholesaler would then sell the good and to a retailer and it is the retailer the consumers can purchase the stoneground whole wheat brown bread to. Both of these channels are long channels of distribution.

The characteristics of a long channel are:

 Product:

 The products are durable.

 The products are standardised.

 They are inexpensive.

 Producer:

 The producer may have a lack of resources to produce the good.

 They may have a limited line of products.

 Control may not be important to producer.

 Market:

 Consumers are the target market for this product.

 It would be a dispersed market, the product would be available nationwide.

 Little knowledge of the market would be known as the market would be so vast.

McCambridge Limited could use intensive distribution. This means the product would be available in as many supermarkets and shops as possible. Bread is an inexpensive convenience good. Choosing a distribution channel depends on what