Distribution in the retail segment
- The competition in the retail sector
- Examples of mergers that have taken place in the United States
- The diversification of supply
- The explosion of the Internet and remote sales prospects
The distribution policy is one of the four components of the marketing mix. The companies pay a special attention since the choice of a distribution formula is extremely subjective. It does not effect the distribution of a product on all fronts but we must choose a distribution method according the product price and the volume of sales expected.
[...] But it is in the non-food segment that the majority of mergers took place. In the pharmaceutical industry adequate buying power is required to negotiate with the major insurance companies, it is this logic that has governed the conduct of concentrations of one part by Penney and Eckerd's and secondly by Shopko and Phar Mor. All these comparisons are intended to minimize costs and have a strong bargaining power over manufacturers in a market where price competition is increasingly fierce. [...]
[...] Brands The emergence of the first-price brands launched by dealers experience a lower inflow of customers to the stores. With the emergence of brands France, Italy and Britain saw the rise of Tesco Value Line, Primi Prezzi Italy and Auchan. The introduction of these brands witnessed the problems of positioning and merchandising, as the consumers associated the product assortments and pricing with the economic feasibility of the company, which would have devalued the image of these companies. The major chains were well placed to provide products of equal quality to that of the top brands under one label. [...]