Describe Distribution System of Milk Vita

Describe Distribution System of Milk Vita

Distribution System of Milk Vita

Distribution Decisions:

It is the most important part of any company as well as Milk Vita. Distribution of any company is very much effective, Milk vita knows that and takes the proper strategies to distribute their milk and milk product to the market.

Companies are legally free to develop strong channel arrangements which will suit them. In fact, the laws affecting channels seek to prevent the exclusionary traffics of some companies that might keep another company from using a desired channel. Most channel law deals with the mutual rights and duties of the channel members once they have formed a relationship.

Many distributor and wholesalers like to develop exclusive channels for their product that are:

  • Exclusive Distribution
  • Exclusive Dealings
  • Exclusive Territorial Managements

Producers are free to select dealers, but their right to terminate dealers is somewhat restricted.

Value-Chin Strategies:

It involves entire supply chain management—meaning upstream and downstream value-added flows of materials, final goods and related information among suppliers, the company, resellers and final consumers.

Milk Vita today is placing grater emphasis on logistic for several reasons. First, company can gain a powerful competitive advantage by using improved logistics to give customers better service of lower price. Second, improved logistics can yield tremendous cost savings to both the company and its customers. Third, the explosion in product variety has created a need for improved logistics manage. Finally, improvements in information technology have created opportunities for major gains in distribution efficiency. Using sophisticated supply chain management software, web-based logistics system, point of sales scanners, uniform product codes, satellite tracing, and electronic transfer of order and payment data, companies can quickly and efficiency manage the flow of goods, information and finances through the supply chain.

Channel Level:

The universe levels of channel are follows the businesses all over the world which we found from David W. Cravens and Nigel F. Piercy’s Strategic Marketing Text. For that reason, Milk Vita follows that system but they use it own way.

Milk Vita can design their distribution channels to make products and services available to customers in different ways. Each layer of marketing intermediaries that performs some work in bringing the product and its ownership closer to the final buyer is a channel level. The number of intermediary levels indicates the length of a channel.

Selecting the Channel Strategy:

(i). Direct Marketing Channel:

Direct marketing channel is a marketing channel that has no intermediary levels. Milk Vita also has direct marketing channel. They maintain that their own people for the request of any charitable purpose, Business people, institutional buyers or institutional users. However now we can show the Channel A direct distribution channel as follows:

(ii). Indirect Marketing Channel:

Indirect marketing channel is a marketing channel that containing one or more intermediary levels. That follows the Milk Vita by using Channel B & Channel C.

They have to way to distribution, one, by Milk Vita Co-operative Society and other is Privet distributors. Another system is co-operative distribution that means around the Dhaka city and out side the Dhaka 20-50 poor people together distribute their product. For the scope of that system many poor people can change their life style because that type of job and earning money from it.

In the Dhaka city and around it they have 5 distribution societies which is their own; Dhaka city-3, Savar-1 and Gazipur-1. On the other hand, 13 Privet distributors are working abreast Milk Vita.

Channel Relationship of Milk Vita:

They maintain a good relationship between the channel members. Some time conflict to the Milk Vita and the different level of channels then the takes some proper strategies that Milk Vita analyzes the problem & give them some facilities for short time i.e. sales commission.