Answer to Question #250511 in Marketing for Dein

Question

Find a product that is intensively distributed in a country of your choice. What can you say about its distribution channels in that country?

Answer 1

Coca-Cola is a product which is inversely distributed as it is commonly known by large number of people across the globe. About the distribution channel of Coca-Cola, this product uses both direct and indirect channels of distribution. Direct distribution involves the distribution of products directly by the producer himself without the use of the middlemen. Some producers prefer to do this by combining two distinct functions, pro­duction and distribution. The Coca-Cola product has managed this by opening my retail shops across the globe to sell and distribute their product directly to their customers.

Coca-Cola also uses indirect channel of distribution which is all about distributing goods through middlemen or intermediaries. In indirect channel there is one middleman like a Sole Selling Agent who distributes the goods through a number of middlemen subsequently or, there may be a number of middlemen when the producer distributes the products through a number of agents or wholesalers or even retailers. An example of how indirect channel of distribution work in Coca-Cola products is when a wholesaler buys the goods in large amounts and then perfects sales in smaller parts to retailers. In this case the wholesaler may obtain the goods from the producer directly without being a selling agent.