How Strategies Employed to Introduce New Products in the Market Will Affect Firm's Competitiveness - Essay Example

A channeling method, which goes beyond the word of mouth, is important when considering alternatives of distributing products. The method alone is not sufficient and needs to be supplemented with other channels to initiate it to be more effective and efficient to the end users. The introduction of new and advanced social networks and marketing strategies, which are based on digital media, has changed the previous effective and efficient methods to a new channel of marketing approaches. Information technology is seen as the game changer to marketing plans. Most of the products are purchased even before the prospector can be contacted thanks to the technological advancement in marketing fields.

Positive results for distributing the product will depend on the prior research on the market, formalizing market processes and measure possible outcomes, concentrating more on the brand more than the merchants, highlighting customer’s needs first among other factors. One of the vocal point’s successes of ONE will be identifying the weakness or any other challenges encountered in the marketing of mother product, Youthful. In this case, the analysis would be vital to improve ONE’s. This can be done through, for example, assuming that Youthful was a product, which was to help the company understand their client’s better in terms of their choices and preferences, markets plans and how effective was the distribution channels were. The knowledge of the potential market in which distribution is expected to be carried is vital. It will be helpful analyzing what methods are commonly used to distribute products in that market. If the strategies are not effective, then one should choose a distribution process that is more improved and competitive. In addition, product brand in the case ONE should be more emphasized in the marketing plan than anything else including the vendors. What matters to the consumers is not the vendor but what they (vendors) are offering. The most important part of distribution is to ensure that the product reaches the potential consumers. Focusing on customer’s interest and initiate ways of filling any gap available in their interest is vital. It will create an improved customer’s product satisfaction in the markets. For example, Youthful product has been able to segregate its client by offering the product to high-end users. In this regard, the producers have created a new customer category separated from other clients by their economic and social status in the society and aspect, which must be introduced when distributing ONE. With all these considerations in mind choosing distribution methods would be easier and more information about the market well-articulated (Pride, Hughes & Kapoor, 2008).

Product channeling also called the marketing channel is a process of organizing ways of ensuring that the products are moved from the producers to the consumers. It is important to note that the marketing channel will start with the producer and end with the end consumers. One of the ways of distributing the products and more efficient way in distribution of ONE is through producer to consumers directly. This method is also referred to as direct channel. This channel needs no intermediary for distribution and relies on itself. The method is efficient because one, it helps the producer ensure that the quality of their product is not compromised and keep control of their products price. If the producers of ONE are keen to maintain close customer relationship as seen from their previous brand, Youthful, this method of distribution is much more effective (Pride, Hughes & Kapoor, 2008).

A second distribution channel will be moving the product from the producer to retailers and lastly to the consumers. This method involves middlemen who are mostly retailers. They buy their goods from the producers and then resale them to the consumers. It is convenient method of distributing products, which are bulky and might attract cost in any addition handling of the products. This method is recommended for products, which are high molded such as cosmetics, which requires less time when reaching the consumers (Dent, 2008).

Additionally, a tradition method is also recommended for distributing products. This method is comprised of more parties involved in product distribution. The product moves from the producer to a wholesaler then to a retailer and lastly to the consumers. Two intermediaries exist for ensuring that the product moves from the producer and reach the end users. In this case, both the wholesalers and retailers are middlemen involved in acquiring the products from the producer and another one ensure that the products is available to consumers (Dent, 2008).

The above stated channels of distribution are applicable when dealing with local consumers of the product. However, if the product is targeted to reach wider international consumers it is important to consider way of distributing these products to the global market. In the first instance, an exporter can choose to sell the products to a foreign retailer who will, in turn, sell the products to consumers in his country of business. Secondly, the producer can sell to a local wholesaler who will sell the product to another foreign wholesaler. The foreign wholesaler would then initiate sales to the consumer through further intermediaries, the retailers (Dent, 2008).

Another channel of distribution is a method called Original Equipment Manufacturer (OEM). This method is concerned with embedding the product in another product. In this case, the sale of one product will depend on another product for it to be fully effective. For example if we use Youthful and ONE, they are all skin care products the latter preventing skin wrinkles and the former prevents skin lines and signs of aging. These two products can be embedded to each other in such a manner that those who wants to reduce signs of ageing will also consider purchasing skin wrinkles prevention product. Such a consumer might tend to rely on both types of skin care products (Dent, 2008).

In recommending the most effective way, one must consider various factors. Consumers are the most important factor. One must consider what consumers needs and determine how the product will be distributed in a convenient, efficient, and cost friendly way to the end users. The efficiency of the mode of channel will largely depend on the existing relationships between the parties involved in the distribution process. If the relationship is strong between the parties, then the probability of a sustainable method is high which will result in the creation and emphasis of each value in the chain of distribution. In turn, all parties will have a share of benefits (Pride, Hughes & Kapoor, 2008).

The distribution channels chosen must be within the customer’s expectation or fully match customer’s expectancy. This method should be steered by the fact that shopping and lifestyles have changed hence customers need a channel that will put into consideration these changes.

One of the best channels is through producer to consumers directly. This method is more efficient when the producer wants to learn more about the customer’s needs. There is creation of closer relationship and hence, information from the customer will be directly passed to the producers. In case of any dissatisfaction, customers can communicate to the producer something, which cannot be tackled in a more complex channel, which most of the times end up causing information distortion or the intermediaries neglect complaints of dissatisfaction. Dissatisfaction might be in terms of quality or any other reason. Another reason is because the method is more cost effective. Producers will not incur any changes that might have been incurred by having intermediaries as the products are distributed. Addition cost in distribution means that the producers will have to increase the products cost to ensure a balanced transaction. Maintaining customers and creating new ones is the most important focus of ONE product and therefore customer satisfaction must be given the priority (Pride, Hughes & Kapoor, 2008).

The second channel is through one-tier distribution or the producer to retailer to consumer channel. Retailers or overseas agents are employed by the producers to pass the products to the consumers. This method is mostly recommended when the producers are supplying the products in bulk and would cause more hurdles to the producers if he was sole distributor. ONE is a product that is targeted not only to local consumers but globally hence the producers’ needs people who are more informed with the market requirements and patterns. In this case one on one encounter with consumers might be difficult since there are in different geographical positions. It is important to understand the reason why Youthful has succeeded in word of mouth distribution which can be termed as form of one on one distribution is because the products are only available at specific places. This fact is, however, contrasted to ONE which will target a wider geographical sphere and hence cannot rely of word of mouth distribution as the sole method. Even though technology has improved and eased communication, it is still difficult to communicate with a wide number of customers at one time. Communication methods such as Skype cannot be effective than face to face since the method is limited by some factors.

Moving of perishable products and high fashioned cosmetics products recommends use of faster method of distribution. Narrowing the parties involved in distribution process is the key to achieve faster and efficient movement of products. The products should not be subjected to long chain before it can reach the buyer (Dent, 2008).

In addition, some products need to be always available to customers at strategic places such as specialized stores and supermarkets among others, which can only be made possible by having retailers as the intermediaries. Retailers will enable establishment of kiosks, sweep shops and other outlets where the products can be made available to a larger population. Most of the retailers are found at grassroots level of the society hence products would be readily available and at affordable price since no more cost of distribution is engaged. The benefits of this channel are ease of making the goods available to consumer (Dent, 2008).

In conclusion, product competitiveness in the market will be affected by the strategies employed to avail and introduce new products in the market. Much emphasis must be placed on need of the consumers in consideration of any emerging trends in distribution process that consumers might be expecting. Predicting the customers need in advance is important to analyze what strategy will be more suitable.