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The Marketing Mix: Distribution (Place) Strategies slp 03 - Essay Example

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There are several different intermediaries that are present that assist the producers reach the final consumers. In terms of Wal Mart the company follows a distribution…
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The Marketing Mix: Distribution (Place) Strategies slp 03

the various outlets of the company, the supermarkets, departmental stores, and the neighbourhood markets. These products are then sold to the customers directly. Hence in simple terms Wal Mart uses retail operations for its distribution of the products.
In the case of Wal Mart’s process, the entire process of buying and selling the process and its related negotiations are broken by different distribution channels into various managerial tasks. The distribution channel is also advantageous as it allows facing the obstacles of the supply chain.
Wal Mart is the largest retailer in the industry and the company does not believe in the use of wholesalers in their distribution channels. The company uses land and shipping transportation to obtain the materials from manufactures based on the location of the manufacturers. Wal Mart uses the local manufacturers in case of items that are perishable and uses only land transportation so that they can serve the customer with good quality without any delay or loss (Wal-Mart Stores, Inc., 2009).
Wal Mart is the largest store in the US and they have a number of different facilities across the country. By establishing regional distribution centers to locations where there were low labor and transportation costs, the distribution system has reduced the overall cost of the organization (Kotler, 2002).
Wal Mart is the largest retail company throughout the world, with over 971 discount stores, 2447 supercentres, 132 neighbourhood markets and 591 Sam’s club s in the US. The company is spread over the 14 countries and employees almost over 2.1 million people. The company has made enormous revenue of over $378,799 million for the year end January 2008. The company’s revenue has increased by 8.6% over the previous year and the profits increased by over 7.3% over 2007. Being the largest retailing company worldwide, the company faces a lot of competition from ... Read More
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