In: Operations Management
You are the marketing manager of a food product company that is considering entering the Indian market. The retail system in India tends to be very fragmented. Also, retailers and wholesalers tend to have long-term ties with Indian food companies, these make access to distribution channels difficult. What distribution strategy would you advise the company to pursue? Why?
ANSWER:
The marketing manager of a food product company that is considering entering the Indian market. The retail system in India tends to be very fragmented. Also, retailers and wholesalers tend to have long-term ties with Indian food companies, these make access to distribution channels difficult. The distribution strategy of the company is to be:
The firm should offer to either wholesalers or import specialists. Since the retail framework in India is exceptionally divided, it would be over the top expensive for the firm to reach every individual retailer. Subsequently, it would be increasingly affordable for the firm to offer to wholesalers or import specialists. Import operators may have long haul associations with wholesalers, retailers, as well as other import specialists. So also, wholesalers may have long-standing associations with retailers and, consequently, be better ready to convince them to convey the association's item than the firm itself would.
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