Channels of Distribution

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Channels of Distribution – Article Review #2

Katarina Mikalacki

Marketing 421

Doula Zahropoulos

October 06, 2004

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Having access to good distribution is fundamental to good marketing. Business operators need to be able to deliver their products and services to the right people, at the right time, in the right quantities, and at the lowest cost. For the most part, this means understanding the various marketing channels, through which merchandise can be moved, and learning how to factor in additional storage and shipping costs. The selection of distribution channels is key to successful marketing.

There are a wide variety of possible distribution channels. Intermediaries, which help the producing company get their product to the end consumer includes: sales agents, retailers, wholesalers, selling agents, and maybe even direct mail. Intermediaries are used as go-betweens because the manufacturing company may not be familiar with the market situation in various areas of the country as they would like to be.

As for branded sportswear, demand is mainly from people aged between fifteen and twenty-five. Most of them are students and white color professionals. Men make up the majority of the consumers. Students have become the particular sales target of the international brand Adidas. Where does Adidas distribute all their goods to target all their consumers?

According to a case study by Microsoft (“Adidas,” 2001), Adidas channels most of its distribution through a network of approximately 3,000 small retail stores. Nationwide, the main retail stores are department stores and sporting good shops. Marketing methods vary, however, across the country. In some places like Hong Kong and Shanghai, agents act as the main distribution channels for imported sports footwear (CBBC, 2004). Some of the agents would handle different brands at the same time. Many of these agents are

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experienced in the sports products field and have wide distribution and retail networks. However, most of them still rely on brand owners to do the advertising and marketing.

Adidas America is one of the largest apparel and sportswear industries in today’s challenging global market. Adidas is now looking at India