Distribution

Distribution forms the 4th P of Marketing and is extremely crucial in reaching out the product from the manufacturer to the consumer. Distribution refers to how an organisation will distribute the product or service they are offering to the end user. The organization must distribute the product to the user at the right place at the right time. Efficient and effective distribution is important if the organisation seeks to meet its overall marketing objectives. If an organisation underestimates demand and customers cannot purchase products because of it, profitability will be affected.

Two types of channel of distribution methods are available. 

Indirect distribution involves distributing your product by the use of an intermediary for example a manufacturer selling to a wholesaler and then on to the retailer.

Direct distribution involves distributing direct from a manufacturer to the consumer For example Dell Computers providing directly to its target customers. The advantage of direct distribution is that it gives a manufacturer complete control over their product.

FMCG products follow an indirect distribution channel. The reasons are as follow:

1. Large consumer base
2. Faster and convenient distribution
3. Small shelf life

Being a FMCG product it is in the best interest of the company to engage in indirect distribution. Maggi typically follows the distribution channel comprising manufacturer, distributor, stockist, retailer and consumer.