Distribution and franchising

Abstract

Distribution is the process of moving a product from its manufacturing source to its customers.

Producer and wholesaler have a strong link and some obligations toward the other.

The choice of the distribution channel is essential to the success or the failure of a brand.

There are several classifications: direct (no intermerdiaries) vs indirect. Indirect one is essentially composed of exclusive, selective, intensive distribution and franchising.

Concept: When a supplier sells through as many retailers as possible, it maximizes the supplier's sales and allows him to obtain large market shares. The high cost is compensated by the huge volumes sold. It enables retailers to offer many brands and product versions.
For convenience products: washing powder, beverages…