Channel Of Distribution. Essay

743 words - 3 pages

Channel of distribution can be defined as a mechanism or tool through which goods and or services are moved from the manufacture and or service order to the end buyer or consumer. Managing a multichannel business in today's competitive environment can be a tremendous challenge. US Cavalry found it essential to concurrently market within and across every available channel, through internet, retail store, and catalog sales.US Cavalry is a multichannel company that features free catalogs, kiosks with Internet access, and signage promoting the company's website. Internet was US Cavalry's first channel of distribution. They first went online in 1995 with a simple informational website and only offered a small amount of products online. If customers are interested, the visitors could fill out a simple form to request a print catalog. The response started out decently at several hundred requests a month and later grew rapidly each other thereafter. As the business grows US Cavalry put their entire product catalog online but many still preferred to receive printed catalog. As a result, US Cavalry started adapting mailing catalogs as their second channel of distribution.To US Cavalry their goal is to achieve the greatest return from their marketing investments, therefore they found it essential to concurrently market within and across every available channel. For instance, US Cavalry had promoted their overstock through mail catalog, retail advertising, and online banner ads to advertise the sale. As a result, they cleared out most of the stocks within 30 days and all of it within 90 years. This has proven that these three channels of distribution are really working very well for US Cavalry. Every organization is different therefore they need to find the right marketing strategy along with the most effective channel of distribution to distribute their products to consumers.Organizations need to select the channel or channels of distribution that will serve them the best and ensure that they are getting the most response and revenue for their investments. US Cavalry had showed us that a particular product may work better in certain channels than others. For instance, their clothing sells better online, while boot wear works bets in the catalog. Furthermore, US Calvary had research their customers' buying patterns and come...

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