Abstract
This paper contains analysis and discussion of the proposed distribution channel, members and organization for an assisted living facility in United States of America. The proposed distribution strategy was borrowed from Emeritus Senior Living Home. The facility shall have a direct and single distribution channel under Corporate Vertical Marketing System form of organization.
Introduction Distribution is the process of delivering goods and services to users, consumers or businesses. It is one of the most critical functions of businesses which ensures that good and services reach intended consumers. Emeritus Senior Living uses direct means to distribute its assisted living services to elderly people in US. The Emeritus Corporation, which owns the homes, manages over 400 senior living homes located in more than 40 states in US (“Emeritus Senior Living”, n.d). These homes are referred as communities, and each community specializes in serving and meeting the special needs of its residents. However, the communities observe the standards set by Emeritus Corporation.Overview of Distribution Channels Distribution channels are chains of organizations that goods and services pass through until they are delivered to consumers (Rosenbloom, 2009). They are routes that products and services pass in order to reach consumers. The key objective of distribution channel is to make products and services available to consumers. A distribution channel can either be direct and indirect. In the direct channel, the producer sells directly to consumers through a number of means that include door to door delivery of products or services, internet or exclusive deals. The manufacturer-consumer channel is also referred to as o-level channel (Rose, 1996). On the other hand, indirect channels involve the use of intermediaries that include retailers, distributors, wholesalers and retailers. The manufacturer-retailer-consumer, manufacturer-wholesaler-retailer-consumer and manufacturer-distributor-wholesaler-retailer-consumer are referred to as levels 1, 2 and 3 channels respectively. The choices of channel level depend on factors which include nature of products and services offered and industry characteristics. The direct distribution promotes strong customer-provider relationship and increases chances of repeated business. However, it is costly and limits coverage and contacts. On the other hand, an indirect distribution channel promotes wide geographical coverage, minimizes the distribution costs and enables aggressive marketing. However, it is complex and requires a lot of work. Besides, stores are independent and difficult to control. Again, the manufacturer does not come into contact with the customer. This makes it hard to maintain customers’ loyalty.Analyze Target Market’s Needs in Distribution Channels Markets needs and customer behaviors determine the distribution channel adopted by businesses. Assisted living services are categorized under healthcare services. They ensure safety, wellbeing and health of people with problems. Consequently, most people employed in these facilities are healthcare providers. People visit these facilities to access medical care and get assistance in performing life tasks, which include bathing, dressing and walking. Consequently, these facilities ought to be well equipped, secure and clean. They should also have programs that include recreational activities, social services, educational services, transport arrangement and exercises and wellness activities. The clients of these assisted living homes expect to be treated with dignity, concern and respect. They do not want to be abused, neglected, or their privacy infringed. These markets needs are offered better by a direct distribution channel than indirect channel. One level channel ensures that healthcare providers meet their clients directly and provide services to them.Determine Channel Members with Explanation Channels members are businesses that are involved in the distribution of services and products (Lamb, Hair & McDaniel, 2012). They include wholesalers, agents, manufacturer’s representatives, dealers, and retailers. The assisted facility branches located in various states shall be members of the distribution channel. The choice of channel members was driven by product and services characteristics. There is a high expectation of customer satisfaction in healthcare service provision. This is also extended to assisted living service providers. Clients of assisted living facilities expect quality, reliable and consistent services. This requires total control of distribution channels. Consequently, the members of the distribution channel should be owned by the company that operates the facility. These branches shall provide direct services to elderly and people with disabilities. Besides, the consultation services shall be offered through telephone and internet. Clients shall use the facility’s phone number available on its website to consults the doctors, dieticians and nurses hired by the management. They shall also use the online chat messaging application to reach the facility’s staff.Discuss How Many Channel Members with Explanation Single distribution channel is the most appropriate for the facility because it eliminates intermediaries that are not necessary in the provision healthcare services. Assisted living services require one on one engagement with customers. It entails listening to clients’ problems and immediately finding solutions to those problems. Consequently, provider-consumer channel is the most preferred by many organizations involved in the provision of healthcare services. Assisted living services have a very short cycle time. The services are intended to reach the consumers immediately. Besides, direct communication between the provider and the consumer is critical in assisted living services. Existence of many intermediaries can lead to delays and communication breakdown. Furthermore, it is difficult to enforce standards to independent entities. As a result, the intermediaries may provide a wide spectrum of services ranging from very low quality to high quality. However, direct distribution channel makes it possible for the facilities to have uniform procedures, standards, regulations and rules.Channel Organization Emeritus Senior Homes has successfully used Corporate Vertical Marketing System since 1993. The corporation owns all the distribution channels. These channels are managed as a unit by the corporation. The members of the channel work together to ensure that the customers get quality assisted living services. The facility shall also adopt corporate VMS form of distribution channel organization. It shall begin by three branches located in the state of California. These channels shall be managed and coordinated by a company incorporated in US. The company shall be responsible for hiring of staff and managing of the facility’s resources. The branches shall provide medical care services and life task assistance to clients.Conclusion There are over 700,000 thousand people living in assisted living facilities in US (National Center for Assisted Living). This number is expected to rise owing to a number of factors that include deteriorating health and growing population of seniors. Over the years, the facilities have marketed themselves as alternative providers of high quality medical and general care to elderly and people with disabilities. Thus, they have experienced positive growth because of quality services. However, the number of these facilities is also growing, and the competition is getting stiffer. The proposed distribution channel intends to promote customer loyalty as a competitive advantage.
References
Emeritus Senior Living. (n.d.). Senior Homes. Retrieved March 1, 2014, from http://www.seniorhomes.com/a/emeritus-senior-living/
Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2012). Essentials of marketing. Mason, Ohio: South-Western Cengage Learning.
National Center for Assisted Living. (n.d.). Resident Profile. Retrieved March 1, 2014, from http://www.ahcancal.org/ncal/resources/Pages/ResidentProfile.aspx
Rosenbloom, B. (2009). Marketing channels. S.l.: South-Western.
Ross, D. F. (1996). Distribution: Planning and control. New York: Chapman & Hall.
