Distribution Channel Strategy Research
Distribution channel is the link between companies and consumers. The traditional channels consists of four levels, general dealers, dealers, sub-dealers and retailers. These dealers act as a part of distributing product. As the supply of products often could not meet the demand before, dealers always depend more on companies.
When more and more products and brands came, dealers had the freedom to select. The relationship between companies and dealers took a large change. And especially the emergence of chain stores began to overthrow the old marketing system. If a company is weaker and weaker in controlling the channel, it will only act as manufacturing part in the whole industry chain.
As the company plans the distribution channel strategy, the basic demand on the channel is large coverage, short time distribution and effective control. So the company has to consider many problems as the channel structure, style, layout, some encourage policies to dealers and so on.