Does Dove company use an indirect or direct distribution approach? Or both?
The product under analysis is Dove Purely Pampering Coconut Milk with Jasmine Petals Body Wash. The company employs varied approaches to carry out its distribution. Hence, for instance, this product might be purchased directly from the company’s website or from some of the company’s retailers such as Walmart that offers this product along with other Dove items (Walmart par.1). Nevertheless, it should be admitted that the indirect distribution that is the one performed through retailers, is more preferred. Basing on my own experience, I am more likely to buy Dove Purely Pampering Coconut Milk at one of the nearest stores than order it from the official website.
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Besides, it should be noted that the company uses a wide series of intermediaries to promote its products. The key intermediaries comprise such supermarkets as Carrefour, Walmart along with the drugstores – Müller and Rossmann. According to experts’ opinion, selling products through big chain retailers is the most efficient distribution approach that a soap manufacturer might employ. In such a manner, the company can offer its products at lower prices and eliminate numerous risks related to warehousing, transporting, etc. (Boykin par.2).
Does this company use an exclusive, intensive, or selective distribution strategy?
Analyzing the company’s distribution strategy, it might be stated that Dove sticks to the intensive type of distribution. Hence, it is commonly assumed, that a company that intensively distributes its products tries to reach its audience in as many ways as possible. As a result, it agrees upon the cooperation with various retailers and intermediaries.
Experts also point out that a company that chooses the intensive type of distribution supplies its retailers with the right to set their prices and has little control over the distribution process, unlike the company that prefers the exclusive distribution type (Chand par.10). A brief overview of the offers posted by different retailers shows that the prices for the same Dove product vary significantly. Moreover, the product might be found on numerous sites worldwide.
Thus, for example, there is a chance to purchase Dove Purely Pampering Coconut Milk with Jasmine Petals Body Wash from Walmart for 5.47 dollars (Walmart par.1). In the meantime, an online drugstore might sell the same body wash almost twice more expensively – the current price is 7.59 dollars, whereas the initial one would reach 9.09 dollars (Drugstore par.1). It shows that the company is mainly interested in distributing its production as actively as possible rather than in positioning itself as an exclusive, respectable brand.
What kind of logistical strategies does this company use for their distribution?
Dove has a well-developed logistic system that offers a wide range of services and guarantees. Hence, for instance, according to their official data, the company has worked out a special tracking system that allows the customers to remain aware of the product’s shipment status. Moreover, the analysis of their service descriptions shows two critical points. First and foremost, their logistic network is highly extended – it covers such locations as Canada, Puerto Rico, Hawaii, etc. Secondly, the system is multi-functional – it offers such services as air charters, warehousing, fulfillment, and ground services (Dove par.5).
To ensure safe and sustainable deliveries, the company uses the help of Unilever that is one of the most recognized supply chains in the world. This cooperation lets the company reach the largest number of the targeted audience possible and distribute their products under mutually beneficial conditions (Blanchard par.13).
Blanchard, Dave. 10 Best Supply Chains, 2003. Web.
Boykin, George. How a Distribution Channel for a Soap Manufacturer Works, n.d. Web.
Chand, Smriti. Types of Distribution: Intensive, Selective and Exclusive Distribution, 2015. Web.
Dove. Logistics & Transportation, 2007. Web.
Drugstore. Dove Purely Pampering Body Wash, Coconut Milk & Jasmine Petals, 2016. Web.
Walmart. Dove Purely Pampering Coconut Milk with Jasmine Petals Body Wash, 2016. Web.