Distribution in Retailing

Doherty's Bakery Tesco

Contents:
Title Page Page 1
Contents Page Page 2
Introduction Page 3
Distribution in Retailing table Page 4
Distribution Channels Page 4-5
Availability of products (time, place, quantity) Page 6-7

Movement of goods from manufacturer to retailer to consumer Page 7-8

Distribution channels for different types of goods Page 8-9

Wholesalers as intermediaries Page 9

Product enhancing functions Page 10

Introduction:
I have been tasked with conducting research on the distribution process within different channels from the manufacturer through to the customer for an independent retailer and a multiple retailer.

Tesco- As one of the world’s largest retailers, Tesco has over 500,000 employees who serve millions of customers each week in their stores across the world and also serve customers online with their website. Tesco has stores in 12 different countries making its influence spread across the world as it continually develops itself within this market. Tesco sells a variety of goods including clothing, food, electronics, furniture and health and beauty which allows it to appeal to a large potential audience.

Doherty's- This independent retailer is located in Derry and has two stores in the area, they are a small business that have been successful for expanding their market and developing their brand to appeal to the local citizens in Derry. Doherty’s are able to sell a variety of buns, cakes, breakfasts and pastries which lets them market their products as lunch and breakfast food which makes their opening times more effective.

This is a table that will demonstrate the distribution process of two businesses that operate in the north west area. These businesses are Tesco and Doherty's Bakery.

Description
Two Examples
Distribution Channels
Organisations have to consider how they are going to distribute the product or service that they have produced and sell them to the customer. Distribution is the process of getting a product or service to the right people, at the right time, while having to take into consideration the need for profit and efficiency. A customer has the option when buying a product or a service to either buy directly from the business or to buy from a retailer or wholesaler. These ways of purchasing are known as distribution channels.
Tesco- Tesco use many different distribution channels to sell their products to their customers this allows them to reach the largest number of their target markets as possible when selling their products. Two different ways that Tesco distribute their products would be Selling their products in store and allowing customers to purchase their products online via their website. These different methods of distribution are used to allow Tesco to compete with their competitors and also fulfil their customer’s needs.

Doherty’s Bakery- Doherty's use less distribution channels than Tesco when it when it comes to their products due to the size of the business however the distribution channels that Doherty's does use allows them to effectively sell their products in store to their customers while still being able to compete with larger businesses in the same market, they also sell their products from their factory which produces the products that provide the stores with stock in bulk at lower prices to be used for events and parties.

It is important for all business to ensure that they have procedures in place to ensure that their products have the necessary channels for them to be able to be distributed to all of the areas where that product would have the highest demand to ensure for the highest profits.

For Tesco they have ensured that this system is in place by having many different distribution centre locations throughout the UK as you can see on this diagram

For Doherty's this is less of a concern and it is more important that they keep their stores