Developing a distribution system - The best brand promotion channel

(Baonghean) -Currently, PR-marketing and distribution activities are identified as very important steps to help products reach customers and promote the best brand of the business. Effective distribution, high competitiveness with the lowest cost will help manufacturers and consumers benefit together.

Representative of Nghe An Department of Industry and Trade, said: Currently, there are 2 main distribution channels for businesses to expand their networks, which are traditional and modern. However, in reality, many businesses still miss the opportunity to expand their market and increase their revenue. Expanding the consumption network to rural areas is a potential direction because rural areas account for the majority of the population and contribute greatly to consumer goods sales.

Efficient, highly competitive distribution will help manufacturers
and consumers benefit.

While the rural market is left open, most businesses and manufacturers invest in improving modern sales channels to increase sales through supermarket systems and convenience stores in urban areas. Currently, the number and types of modern distribution channels are expanding, moving towards forming modern distribution and retail channels. According to statistics, Nghe An has over 80,000 convenience stores and sales agents, most of which are concentrated in Vinh City. Right on Nguyen Phong Sac Street, there are nearly a dozen convenience stores decorated with eye-catching advertisements. Ngoc Lan Small Mart on Nguyen Phong Sac Street, in addition to frozen foods and fast food, also provides food products and consumer goods for patients and their caregivers. Convenience stores meet the increasing demands of consumers on food safety and convenience of sales locations.

Mr. Tran Duc Chinh, Acting Head of the Trade Management Department (Department of Industry and Trade), said: Each company and each industry has different distribution channels based on criteria such as product characteristics, distribution strategy and capital investment ratio in the distribution channel. Usually, businesses invest in modern distribution systems to make quick profits. There is no fixed model to determine the appropriate distribution channel, but it depends on the characteristics of each business as well as the characteristics of the customer. To do this well, it is also necessary to understand the target customers, the market as well as the shopping culture of each region.

Nowadays, a company can distribute many products that compete with each other. For example, FPT distributes mobile phones for Nokia, Motorola, and Samsung, although the manufacturers are not comfortable with this and they are constantly looking for opportunities to have their own distributors for their products. And it is this competition that will ensure effective distribution at the lowest cost, thereby benefiting both manufacturers and consumers.

Viet Phuong