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• Optimize the existing distribution network.
• Prospect new territories and identify new markets and partners.
Distribution explained
Define distribution channels
Description: the way of transport has to be chosen. It could be an existing distribution channel, that the company already uses, but it could also be a new kind of distribution channel.
Purpose: gives insight in the use of distribution channels and with this information, it is possible to prepare the distribution.
Product: in combination with the “define distribution expenditures” and “define distribution intensity”, it forms a distribution plan. This plan contains information about the organization of the distribution of the new product and is part of the tactical plan.
Define distribution expenditures
Description: a detailed budget for the distribution of the new product has to be defined. With this budget, the distribution of the new product can be organized and prepared.
Purpose: defining the distribution expenditures gives a clear view on the costs for distributing the new product. This information can be used in calculating the price level of the product.
Product: a distribution plan (see paragraph 2.2.7).
The cost per product will be defined by the way of transport: the faster the transport, the higher the cost.
Define distribution intensity
Description: the size and capacity of the distribution have to be defined. The size and capacity depends on the expectations of the product: does the company think that the new product will be sold very much in a short amount of time?
Purpose: gives insight in the needed capacity for distribution of the new product.
Product: a distribution plan (see paragraph 2.2.7).