Marketing Channels

Distribution channels

There are several distribution channels that are being used, but the channel that is used for Amstel is channel C.

In terms of complexity, the channels get more complex if the amount of wholesalers and retailers is high. With a lot of wholesalers and retailers the channels get very complex, because it will be hard to keep track of all these clients. Also if a producer wants to export its products to a wholesaler in a different country, they have think about the potential import duties.

In terms of distance, the more distance there is between the channels, the higher the costs will be. If there is a very big distance between the producers and the wholesalers, or the wholesalers and the retailers the transportation costs will be very high. Amstel is produced by Heineken, which is a company that sells its products worldwide. So it would be wise to have a lot of producers that are close to the wholesalers, so the transportation costs will remain as low as possible.

Functions of the distribution channels

All the channels have different distribution functions, from the production of goods to the consumption of the goods. Producers buy the raw materials and create the finished product, which is in this case Amstel beer. After that they will sell the finished products to the wholesalers. A wholesaler is a firm that buys the finished products from the producers in large quantities, which they then sell to the retailers. A retailer is someone that sells the products that he buys from the wholesalers directly to the consumers. So they will buy the Amstel from the wholesalers and then give the consumers the ability to buy the beer in their stores. The consumers are the people that buy the products from the retailers and use it.

Product image

Every product has its own image, which is the way consumers look at the product. The image of Amstel can be influenced by the retail concept in which it is sold in a negative and positive way. If Amstel is being sold to retailers like Jumbo or Albert Heijn, it will have a positive effect on the image of Amstel. This is because these stores are well known and overall have a good reputation, so if they sell Amstel the consumers will be more eager to buy it. Also they have quite a lot of advertisements and often discounts on their products, which also creates a good reputation for the store and therefore a better image for products like Amstel. But there are also small retailers that buy Amstel from the wholesalers. Most consumers don’t know anything about these retailers or perhaps these small retailers have a bad reputation, which has a negative effect on the image of Amstel. Also they won’t be able to afford many advertising for their stores, so they will not improve their reputation. The price of the beer will also have an influence on the image of Amstel, because if small stores ask higher prices because they need it to make profit, it will be negative for the image of Amstel.

Distribution strategy

All companies have a distribution strategy and there are a lot of different strategies that can be used. I think Amstel uses the intensive distribution. This means they use all available outlets that are willing to sell beer. This also means that they have a lot of retailers, so they need their products to a lot of different places, but this way they will gain a lot of profit and their brand will be known by many consumers. To consumers, availability means that they can buy it in a store that is located nearby and that it won’t take long to search the product and to buy it. Almost all people have access to a store that is nearby, so they will all have the opportunity to buy Amstel.

Bibliography

Dibb, S., Simkin, L., Pride, W. M., & Ferrell, O. (2016). Marketing Concepts and Strategies (7th ed.). China: RR Donnelley. Retrieved December 7, 2016