Marketing Strategy: Distribution

“Few companies have the confidence, capital, and capacity to launch new products into full national or international distribution right away. Instead, they develop a planned market rollout over time. “(Kolter p.253) In order to grow our product we will limit our distribution to the northwest region. Specifically Washington, Oregon, Idaho, Nevada and Northern California. Although Nevada is somewhat out side of the northwest region, the marketing opportunities and ability to touch other markets to evaluate growth potential makes distribution to Las Vegas worthwhile.  While many “Companies often pay too little attention to their distribution channels, sometimes with damaging results.”(* p312) We have set up distribution channels to ensure our product is moved in a timely and efficient manner.  Building our own distribution system from scratch is difficult. “When Nikon entered the digital camera market, it decided that it needed an entirely new distribution strategy as well. So it asked transportation and logistics giant UPS to design a complete system for moving its entire electronics product line “(Kolter p.162) To bring our products to market we have partnered with FedEx to create a flexible and expandable distribution system. “Distribution channel decisions often involve long-term commitments to other firms.” (Kolter  p.312) and ours is no different, we have set up a 5 year contract with FedEx and have the option to extend for  5 more. “ Although in store sales are the norm, “many companies have used imaginative distribution systems to gain a competitive advantage.”  (Kolter p.312) We are going to use GetWineOnline.com to sell our product online to allow us to reach customers that are outside of our traditional distribution network.

Kotler, Gary Armstrong and Philip. Marketing: An Introduction for Education Management Corporation, 10th Edition.