Introduction
One of the main keys to success for the new microbrewery unit will essentially be establishing the most suitable distribution strategy. In fact, Louckx (2014) maintains that formulating an efficient distribution strategy is essential to the success as well as the survival of any business. The new microbrewery unit should, thus, make its new products available at a place as well as a time that is convenient for the consumers. In particular, the new microbrewery ought to use different distribution channels so as to make itself visible to as many groups of consumers as possible. As a matter of fact, the use of different channels of distribution will help the new microbrewery unit engage with its target customers on an interactive and frequent basis, thus, increase its chances of success. In an attempt to select suitable distribution channels, the unit should consider factors such as locations and reach, the marketing environment, competitors, and customer characteristics.
The suitable distribution channels for the new microbrewery unit to use will be both direct and indirect channels. In particular, it should sell its products directly to the consumers in its restaurant as well as sell to the middlemen who will finally sell to the consumers. Szopa & Pękała (2012) suggest that the businesses that sell their goods directly to the consumers keep full control over a disposal of goods, services, and price levels. Consequently, the new microbrewery unit will successfully retain full control over the services as well as the level of prices for its products. The benefits of using a direct channel include the likelihoods of low price implementation and fast response to the demand changes, fast flow of information, and full control on the product and margin flows (Urbańska, 2010). Thus, the new microbrewery will attain these benefits from selling its products directly to the consumers.
Regarding the indirect distribution channels, the new microbrewery should use intermediaries/ middlemen in distributing its products. In particular, it should sell its products to the wholesalers, the wholesalers to the retailers, and finally the retailers to the consumers. As a matter of fact, this will facilitate the distribution of the new microbrewery unit’s products to a large geographical area. Middlemen create ownership, time, and place values by bringing the sellers and buyers together (Pelton, Strutton, & Lumpkin, 2002). The wholesalers and retailers will, therefore, help in generating time, ownership, and place values for the new microbrewery unit and contribute to its success.
References
Louckx, Y. (2014). Recommendations For The Distribution Strategy In Changing Market Environment: Case: Belgian Brewery Van Honsebrouck in Russia.
Pelton, L. E., Strutton, D., & Lumpkin, J. R. (2002). Marketing channels: a relationship management approach. McGraw-Hill College.
Szopa, P., & Pękała, W. (2012). Distribution channels and their roles in the enterprise. Polish Journal of Management Studies, 6, 143-150.
Urbańska, J. (2010). The Role of Distribution in Creating Competitive Advantage of Companies in SME Sector. Advanced Logistic Systems.
