Distribution Channels Essay

947 Words Sep 6th, 2012 4 Pages
Reese’s Distribution channels

Introduction Any product or service in the marketplace utilizes distribution channels to reach its customers. Although the manufacturers and services providers can and do provide their goods and services directly, utilizing distribution channels multiplies the number of goods and services that reach the marketplace (Advameg, Inc, 2011). Therefore, distribution channels can increase market share and profit margins since these distribution channels help the company’s product reach its target segments and enter into new marketplaces (Advameg, Inc., 2011). As they enter into new regions, stores, and the like, manufacturers and service providers can capitalize on these channels and markets by cultivating
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More importantly, perhaps, this direct manufacturer to consumer distribution channel uses third-party shipping. If Reese’s used this method as its sole distribution, it would not have the market share it currently has. Moreover, it would be more difficult to reach its consumers who buy Reese’s to reward themselves, to cheer themselves up or for simple indulgence. Additionally, too, distribution through this method is costly. Therefore, Reese’s has harnessed other distribution channels. These channels include wholesalers, warehouse and retail distributors and a global chain of distribution. Since the Packaged Facts 2004 Report reveals that “Supermarkets Account for 46% of Mass Channel Big Three” and that mass merchandisers have comprised the distribution sector with the fastest growing sales, Reese’s needed to reach these channels in order to get their products into the hands of its consumers. Because more than 60% of its target market is adults, Reese’s must utilize wholesalers, mass merchandisers and retail suppliers to reach these consumers. After all, these distribution channels disperse the Reese’s products among numerous stores throughout the 90 countries in which Reese’s are sold. In order to provide the right product, Reese’s, at the right place and time, using

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