Distribution Strategies

Distribution Strategies

The distribution aspect of business falls under the marketing mix under the place principle of the four p's. Distribution is creating channels that the product flows from the producer to the consumer (Gitman & McDaniel, 2005). This includes how many stores and which specific locations will handle products in specific geographic areas (Gitman & McDaniel, 2005). Wendy's and McDonald's are two of the largest fast food chain competitors and both use distribution as a tool to run a successful business. Wendy's uses Sygma as the main supplier. Sygma supplies Wendy's franchises with ground beef, produce, dairy products, frozen foods, dry groceries, paper, and other supplies (Sysco, 1998). Wendy's has distribution centers across the North America in Florida, Illinois, North Carolina, Colorado, Nebraska, Utah, and British Columbia (Sysco, 1998). One main supplier delivers the products to the different franchises enabling consumers to have the same expectations and standards when making purchases in different locations. Wendy's and Sygma have had a 28-year relationship with each other resulting in a strong distribution alliance. Wendy's has made the promise to consumers that all products are made fresh daily and not made with frozen products so the supplier, distribution centers, and franchises must have a strong alliance. Wendy's uses this strong relationship and the distribution centers to distribute the products to the local restaurants. McDonald's uses different distribution strategies to meet the demands of the industry and consumers. McDonald's can use horizontal marketing systems by making arrangements with other companies to increase new market opportunities (n.d.). Wal-Mart and McDonald's have joined successfully together to allow McDonald's to provide express restaurants in the retail store and provides food for customers in Wal-Mart without having to go somewhere else. McDonald's also uses intensive distribution by marking the product available for sale through all possible distribution channels (n.d.). The organization provides products to as many locations as possible to reach customer needs at anytime and anywhere. McDonald's uses different suppliers and franchisors in different nations that are accustomed to what works in that geographical area to save time and money on trial and error of all products. Running a successful business requires a strong marketing mix including the place element of the products, which includes the distribution of products. The distribution of products brings the items to the consumers and business can use different strategies to bring the product to consumers.

(n.d.). Distribution strategy. Retrieved from http://www.docshare.com/doc/96364/Distribution-Strategy

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