Question

1. Our group have selected durian fruit as a product and we are going to sell a product in China market. so please guide me on the following question:: 1. What are the factors your group has to consider when selecting distribution channels? 2. What type of distribution channels will you use for your product?

Answer 1

1. There are various factors to be considered when selecting a distribution channel. Following are some of them:

• Product: this one being a fruit is a perishable product & hence requires speedy movement & short route of distribution.
• Market: next factor is the market. If it is a consumer market a retailer would be essential & in case of small market, direct selling is the best method.
• Middlemen: if there are middlemen who are ready to provide the wanted marketing services & the channel that is generating the largest sales volume with low cost.
• Marketing environment: During recession or depression, shorter and cheaper channel is preferred. During prosperity, we have a wider choice of channel alternatives. The distribution of perishable goods even in distant markets becomes a reality due to cold storage facilities in transport and warehousing. Hence, this leads to expanded role of intermediaries in the distribution of perishable goods.
• Competitors: existence of competitors & the distribution channel that is being used by them for selling the durian fruit. Usually we have to avoid the one that is used by the competitor as well.
• Customer characteristics: this includes geographical conditions, frequency of purchase, quantity of purchase etc.

2. The best distribution channel for selling this kind of product would be direct selling. This is because fruit being a perishable product, it is always better to hand over them to the end customers directly rather than going for any other methods like online sales or using the services of middlemen or telephone transactions etc. using direct sales method would always ensure the best customer satisfaction because they are assured of their quality & satisfaction by adopting direct sales method. Whereas using any other method can affect the product quality.