Strategic Responses Distribution Dynamics -Myassignmnethelp.Com

Question: Discuss About The Strategic Responses Distribution Dynamics? Answer: Introduction It is hard to miss the Red Bull mini fridge on the counter if you have ever visited a super market or a hyper market. The iconic Red Bull logo and the grey colour of the fridge is something you cannot miss. Red Bull GmbH is an Austrian energy drink company that has been established in 1987. In this article we are going to be discussing about the marketing mix which is fundament to the concept of strategic management. In order to cater to the needs and requirement of the target market the organisation should make sure that the products reaches to the end customer. This is where the place and distribution section of the marketing mix gain importance (Energydrink.redbull.com 2018). Types of marketing Channel The marketing channels are the ways in which a product or service reach the end customer. This is done by a number of means depending on the type of product, the feasibility of the organisation. Scale of operation nature of the business etc. the channels can be divided in four sections which can further be divided as per the requirement of the company. The four basic marketing channels are: direct selling, selling with the help of third parties of intermediaries, dual distribution and reverse channels (Khan 2014). The purpose of each of these channels is to ensure the product or service reaches the right person at the right time. Red Bull has a sustainable business model where the company employs strategic management decision based on a sustainable approach, In order to commit to the purpose of reduction of Co2 emission the company uses train and ship to distribute the products. The shapes of the cans are made in an ergonomic style in order to make it easy for transport packaging (En ergydrink.redbull.com 2018). The company has been involved in using intermediaries to distribute the products. The products are made available various other organisations where Red Bull is sold to the end consumers (Olsson 2013). Challenges faced in managing appropriate channels The process of distribution of the product depends on the profitability of the organisation. Red Bull is available in 171 countries and the company has to keep up and adhere to the business dynamics of each of the countries in order to ensure hassle free availability. For a multinational company this is the biggest challenge in managing the channels of distribution (Khan 2014). Channel conflict and solution When there are third parties involved in distributing the products there are bound to be conflicts and grievances. The types of conflict are: horizontal or vertical conflict, multichannel conflict and inter type culture and the reason can be of various type. One of the most frequent reasons for conflict is miss communication or communication gap in between the company and the third parties involved. In order to resolve a conflict it is important to locate the issue and then analysis it to understand the nature and intensity, the source and the impact of the conflict should also be analysed. Based on the understanding a plan of action is required to be drawn (Olsson 2013). Importance of place and distribution strategies In the traditional concept of 4Ps of marketing mix place or distribution plays a very important role. It is the strategies that will ultimately enable the company to reach out to the target customers. This is important as this will ensure a large amount of sales volume and it has to be strategic because it is no point making a product or service available in a place where there is no demand for it. One of the many objectives of an organisation is to maximise profit and increase the sales and it is very important to marketing the product or service available at the right time and right place in order to do so. For example: Red Bull has distribution in gyms and fitness centres where the demand of the product will be high and there will be an availability of the target market. It can be said that Red Bull has an intensive distribution strategy so that they can make the product available at maximum spots (Khan 2014). Conclusion The Red Bull mini fridge at the local grocery shop or the supermarket has surely allured you to buy a can one or more times. The company has an indirect method of distribution and the company focuses on being sustainable and environment friendly. Reference list: Energydrink.redbull.com 2018.Home Page. [online] energydrink.redbull.com. Accounting: https://energydrink.redbull.com/ [Accessed 17 Jan. 2018]. Khan, M.T., 2014. The concept of'marketing mix'and its elements (a conceptual review paper).International journal of information, business and management,6(2), p.95. Olsson, R., Gadde, L.E. and Hulthn, K., 2013. The changing role of middlemenStrategic responses to distribution dynamics.Industrial Mark