Distribution of an Unsought Product
There are quite a lot of unsought products in the market. One unsought product I can think of is medicines, such as Panadol. It is an unsought product because usually consumers do not look for it unless they really need it. Consumers are not desirable to buy Panadol. They buy it because they are sick and they need it.
The customers of Panadol mainly need wide distribution since the consumers do not want to go and seek everywhere for medicine when they need it. They need the products of Panadol to appear everywhere and it large amount so it is easy for them to purchase for their emergencies. For the case of medicine, the service level required is not so high.
Therefore, based on the customers’ needs, the objectives of the Panadol Company regarding the distribution channel will have to be wide distribution. Their products must be sold at popular places that the consumers can find easily. Moreover, of course the company wants to increase their sales revenue and maximize their profit as well as gaining more customers.
Normally, I think Panadol are sold at pharmacies and some stores such as Watsons, Guardians, or at NTUC or some convenience stores like 7eleven, etc. Medicines usually go through a channel of distribution before getting to the consumers. From the manufacturer which is Panadol Company, the medicine is sold to the wholesalers, distributors then going to the retailers which are mentioned above. Then, the consumers can buy the medicine at the retailers. Since the middle men like wholesalers and retailers do not belong to the Panadol Company. They are separate businesses like NTUC, Watsons, etc. Because of these reasons, the current distribution channel Panadol is using is the indirect channel.
As mentioned above, Panadol Company should sell their products through some intermediaries. They may or may not need the agents. But I think they must have wholesalers to distribute their big boxes of medicines to the smaller boxes and distributors to deliver their
The customers of Panadol mainly need wide distribution since the consumers do not want to go and seek everywhere for medicine when they need it. They need the products of Panadol to appear everywhere and it large amount so it is easy for them to purchase for their emergencies. For the case of medicine, the service level required is not so high.
Therefore, based on the customers’ needs, the objectives of the Panadol Company regarding the distribution channel will have to be wide distribution. Their products must be sold at popular places that the consumers can find easily. Moreover, of course the company wants to increase their sales revenue and maximize their profit as well as gaining more customers.
Normally, I think Panadol are sold at pharmacies and some stores such as Watsons, Guardians, or at NTUC or some convenience stores like 7eleven, etc. Medicines usually go through a channel of distribution before getting to the consumers. From the manufacturer which is Panadol Company, the medicine is sold to the wholesalers, distributors then going to the retailers which are mentioned above. Then, the consumers can buy the medicine at the retailers. Since the middle men like wholesalers and retailers do not belong to the Panadol Company. They are separate businesses like NTUC, Watsons, etc. Because of these reasons, the current distribution channel Panadol is using is the indirect channel.
As mentioned above, Panadol Company should sell their products through some intermediaries. They may or may not need the agents. But I think they must have wholesalers to distribute their big boxes of medicines to the smaller boxes and distributors to deliver their