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p art three: the marketing mix . chapter 9 place. an opening challenge. You are working for a French wine company. You know that Australian and American wine producers are seen as more technologically advanced and better value. How can you compete?. agenda. distribution supply chains

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Chapter 9 place

part three: the marketing mix

chapter 9place

An opening challenge
an opening challenge

You are working for a French wine company. You know that Australian and American wine producers are seen as more technologically advanced and better value.

How can you compete?


  • distribution

  • supply chains

  • intermediaries

  • channel design

    • length

    • breadth

  • overseas operations

  • marketing through the supply chain

  • e-channels

The secrets of place distribution

get the right products

to the right place

at the right time

the secrets of place (distribution)

A supply chain aq re set figure type
a supply chainAQ – re-set figure type

Supply chain members
supply chain members

  • sellers

    • manufacturers

    • resellers

    • wholesalers

    • retailers

  • facilitators

    • agents and distributors

    • logistics services

  • buyers

    • customers

    • consumers

    • business users

Key aspects of logistics management
key aspects of logistics management

  • suitable storage facilities

  • the right amount of stock

  • good communications throughout the distribution channel

  • suitable transport

  • packaging that will protect the product in transit and storage (and be easy to lift and move)

(Fernie and Sparks, 2004)

Choosing a retail location
choosing a retail location

  • is the right type of customer there?

  • transport and car parking?

  • costs?

  • competitive outlets?

  • complementary businesses?

  • a suitable building?

  • planning permission? Other legal restrictions?

  • has there been a similar business in the area?

  • (for chains) impact of new outlet on existing ones?

  • does the location have the right image?

Channel design length
channel design: length

PYO farm



0 level channel

(photo courtesy of Dave Pickton)

Channel design length1
channel design: length


fruit market





2-level channel

Channel design breadth
channel design: breadth




Multichannel distribution aq text missing
multichannel distributionAQ – text missing

Buyer seller relationship aq text missing
buyer-seller relationshipAQ – text missing

Selling overseas two options
selling overseas: two options

make the products at home

and export them


make the products abroad

Selling overseas
selling overseas



indirect export

direct export



level of involvement and risk



Marketing functions along the supply chain
marketing functions along the supply chain

  • stock holding

    • ensuring sufficient supply

  • transportation

  • information gathering

  • communications

  • promotion

E channels

  • electronic distribution

  • b2b

    • order management

    • instant communication

    • supplier search

  • b2c

    • e-tailing, bricks and clicks

  • c2c

    • a different form of competition, e.g. eBay


  • right products, right place, right time

  • place is concerned with the whole of the distribution function

    • from order to delivery

  • channel design

    • levels

    • exclusive, selective, mass

  • different types of intermediaries

    • with different roles

  • additional complexities of overseas distribution


Fernie, J. and Sparks, L. (2004) ‘Retail logistics: changes and challenges’, in J. Fernieand L. Sparks (eds) Logistics and Retail Management: Insights into Current Practice and Trends from Leading Experts, 2nd edn. London: Kogan Page.