Principles of Marketing (101)
Dual Distribution- Wholesale or retain resale through more than one distribution channel, such as via dealers to smaller customers and direct to the large customers.Dual distribution describes a wide variety of marketing arrangements by which the manufacturer or wholesalers use more than one channel simultaneously to reach the end user.
It is also system of marketing channel organization in which a manufacturer uses two approaches simultaneously to get products to end-users; commonly, one approach is to use marketing intermediaries, while the other is to sell direct to end-users. For instance, Nyaradzo Funeral Services has a group funeral policy for firms while at the same time they can allow individuals to open up funeral policies and the same goes for life policies. Another example is that of Van Heusen shirts, although they are distributed exclusively to some firms they are also distributed selectively to well-known leading i.e. you can find a Van Heusen or Perri Cardin shirt in an Edgars shop and still find the same brand at Greatermans.
Distribution strategies employed
Delta Beverages manufactures and distributes lager beer, traditional sorghum beer and sparkling soft drinks . In terms of its own distribution network, Delta has 38 beverage centres and seven customer collection depots. Delta Beverages employs mainly two distribution strategies or systems which are namely the direct and indirect distribution
NB-Indirect distribution is when the product reaches the end customer through numerous channels in between. For example – The product goes from manufacturer to C&F, then to the distributor, then to the retailer and finally to the customer. Thus the chain is long…In the case of Delta they use retailors like Ok store, Pick n pay amongst many others This helps them to make their products readily available to the consumers at designated outlets.
Direct distribution is when the company either directly sends the product to end customer or when the channel length is very less. A company selling on an e commerce portal or selling through modern retail is the form of Direct distribution. In this case Delta beverages have depots where customers can directly access their products or they can supply on events thus targeting the direct market which also helps them in maximizing profits and they pay less to their distributors.
Direct channels are owned by the company itself. The major benefit of company-owned channels of distribution is that the company has complete control over its outlets. This direct control enables the company to maintain consistency in service provision. Control over hiring, training and motivating employees is also a benefit of company owned channels.
Direct channels eliminate the role of middlemen and hence the consequent cost of commission, brokerage etc. This leads to lower distribution costs thereby enhancing the profitability of the organization.
Direct sale is accomplished by the customer going to the service provider (hairstylists, tourist information centre) or by the provider going to the customer (plumbing, house cleaning, building repair etc). Thus, many personal as well as business services benefit from direct sale. Personal and business services like beauty parlors, photographic studios, shoe repair shops, funeral service firms, consultancy, services, car rentals etc., are very much benefited from direct channel of marketing
Conclusively this is how the Delta beverages is achieving its market leadership