Practicing Success
Rajat is producing chewing gum that will be sold in the market for ₹1. The target consumer is from 5 year onwards. The market size of this is large and scattered all over the country. Identify the channel of distribution he should use: |
Direct channel Longest channel Small channel Two level channel |
Two level channel |
Producer-wholesaler-retailer-customer (Two levels): This is the most common and traditional channel of distribution. Under it, two middlemen i.e. wholesalers and retailers are involved. Here, the producer sells his product to wholesalers, who in turn sell it to retailers. And, retailers finally sell the product to the ultimate consumers. This channel is suitable for the producers who have limited finance, narrow product line and need expert services and promotional support of wholesalers. This is mostly used for the products with widely scattered market. |