Operational Cost Analysis for Alternative Distribution Channel for PT. Henkel Indonesien in Greater Jakarta Area
Marketing is an activity conducted by producers in distributing their products. Marketing activity it self cover four main activities, those are Product, Price, Place and Promotion, known as 4 P and each of them assists each other. A certain product of a producer may become a market leader if its 4 P work well, and if one of the activities experience a disturbance then the producer will face a great problem.nnProduct disturbance can take in the forms of quality, packaging, design, etc., whereas Price disturbance may appear as an uncompetitive price. Promotion may get a serious problem if the marketing division fails to choose an appropriate media to communicate their product and it becomes more crucial when the Place / distribution do not fulfill its function properly. However, if Product, Price and Promotion has performed well but the Product cannot be found in the outlet, then consumers will soon forget about it and will look for another products which has the same type in the outlet. Because the product is not distributed propoerly, the producer will suffer a financial loss so that the cost for distributing and promoting the product is not used effectively. The role of distribution is very essential in marketing the product. The products can be distributed directly by the producers or using distribution channels such as a distributors, wholesalers, retailer, etc.nnPerforming a direct distribution is the most ideal for the producer. However, it will spend a huge amount of operational cost with all its operational technique and administration complicacy rather than using third party interference. This thesis tries to analyse the operation cost in determining an alternative distribution channel. The selection of a certain distribution channel should be done cautiously considering its impacts if there is a mistake in determining it.n
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