Customer Value (Place: effective distribution of innovative product)

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nIntroduction

nEffective distribution of innovative product such as new shopping cart with a smart card reader (BAYM) is an important part of marketing. The main aim of distribution is to enhance the accessibility of the product by reducing time and location gaps between the consumers and producers. However, selection of a distribution strategy is important for a firm (Jobber & Ellis-Chadwick, 2012). Similarly, the producer of the BAYM should adopt sound channel management processes in order to deal with issues that may arise in the course of distribution (Boone & Kurtz, 2013). The paper will analyse the distribution strategies BAYM and innovative entry strategies in the global market.

nDistribution Strategy and Channel Management

nThe new shopping cart with a smart card reader requires innovative distribution and channel management system. In this case, selective distribution will be used to allot Buying as you move (BAYM) product to limited number of supermarkets and malls. The main objective is to choose some shops to distribute the new product (Jobber & Ellis-Chadwick, 2012). The strategy is beneficial because it will focus on the most suitable or best performing shops as well as areas where the middle-income groups participate in shopping (Baker, 2014). In addition, selective distribution of BAYM would be successful when the middle-income groups are willing purchase goods in certain outlets.

nIn most cases, the target customers prefer to shop in a particular mall or supermarket where they benefit from classy services consistent with their social status (Boone & Kurtz, 2013). Furthermore, selective distribution assist concentrate the selling effort of the innovator on a number of shops or malls instead of dispelling it over many marginal outlets. The strategy will also help the innovator to develop a good working relationship with various members. Therefore, it will play an important role in gaining maximum coverage in the market and higher control but at lower cost than other forms of distribution (Armstrong, Adam, Denize & Kotler, 2014).

nChannel management refers to various approaches that are used for efficient execution of the key distribution strategy. It helps to ensure that the adopted strategy is successfully implemented (Terpstra, Foley & Sarathy, 2012). Some of the major aspects of channel management include conflict management, evaluation, training, motivation, and selection (Boone & Kurtz, 2013). In this respect, conflicts arising from the use of BAYM would be resolved. Moreover, staff working at the selected outlets would be trained and incentives would be introduced to enhance their motivation (Jobber & Ellis-Chadwick, 2012). Finally, staffs that are more qualified would be employed to evaluate the strengths and weakness of the product with an aim to innovate continuously.

nGlobal Marketing

nGlobal marketing refers to the process of altering the marketing approaches in order to acclimatise to the business conditions of host countries. It involves successful promotion, positioning, creating and planning of the BAYM product in the international market (Armstrong, Adam, Denize & Kotler, 2014). However, global marketing requires understanding of the global environment such as local culture, economic factors, legal issues, political issues and environmental matters related to the use of the new product. Therefore, the company will ensure that these issues are comprehensively analyzed in order to strategically position the product in the new market. In addition, various strategies would be implemented to enter into global markets (Baker, 2014). Some of these include partnerships, and franchising. Partnership will be used in when entering some countries especially Asian markets. It offers beneficial approaches in markets with different social and cultural environment from the home country (Terpstra, Foley & Sarathy, 2012). The local partners provide local contacts, market knowledge and understanding the customer. Additionally, the company will franchise the product because the new product can be simply transferred into various markets (Armstrong, Adam, Denize & Kotler, 2014). Franchising works best were the new brand is unique and is used to establish the future competition.

nConclusion

nBuying as you move (BAYM) is an innovative product that requires effective distribution strategies in order to reach the intended customers (Armstrong, Adam, Denize & Kotler, 2014). Selective distribution is one of the best strategies because it allows delivery of the product to selected outlets where middle class population purchase their products. It helps to focus on the malls or supermarkets were the target customers do their shopping (Boone & Kurtz, 2013). The company can use various approaches to enter into new global markets. Some of these include franchising and collaborating with local partners.

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nReferences

nArmstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson Australia.

nBaker, M. J. (2014). Marketing strategy and management. Palgrave Macmillan.

nBoone, L. E., & Kurtz, D. L. (2013). Contemporary marketing. Cengage learning.

nJobber, D., & Ellis-Chadwick, F. (2012). Principles and practice of marketing (No. 7th). McGraw-Hill Higher Education.

nTerpstra, V., Foley, J., & Sarathy, R. (2012). International marketing. Naper Press.