Distribution Strategy Essay

IntroductionThe core of this presentation is to discuss the theory of diffusion schema with the underlying real life examples of McDonalds fast-food restaurants in Australia. In other words, the aim is to discuss McDonalds distribution channel, the way this fast-food restaurant gets its produces to the market. Nonetheless, this presentation entrust demonstrate that McDonalds distribution strategy is effective in many cultures. In the theory of marketing mix, hind end (distribution) determines where the product will be interchange and how it will get in that location. In fact, McDonalds is the leading global foodservice retailer, with more than 30,000 local restaurants serving nearly 46 million people each twenty-four hours in 121 different countries.Approximately 80 percent of all McDonalds restaurants areawide ar owned and operated by independent franchisors. Furthermore, at the essence of place decisions, Kotler (et al., 2001, p. 513) claims that, retailers, particularly image fast foods chains often state their seven Ps of marketing to be, that is localisation principle, location, location, location, location, location and location. Hence, a retailers location is the key to attracting customers. The costs of the building or leasing facilities is a major factor on the retailers profits. Thus, site location decisions are among the most valuable the retailer make (Kotler, et al., 2001, p. 513).Intensive DistributionOn the other hand, McDonalds opened its jump restaurant in Australia in December 1971. Today there are more than 690 restaurants throughout Australia and serving in excess of one million customers per day and employing over 55,000 staff. Therefore, you can find them everywhere in Australia, where more or less of the McDonalds are open 24 hours per day which satisfy peoples needs and wants, especially for exists their hunger. This kind of distribution strategy is called intensive distribution, means marking the product available for sale through all possible channels of distribution. As defined by Kotler (et al., 2001, p. 487), intensive distribution is stocking the product in as many outlets as possible. In addition, this strategy must be designed to reach the consumer wants atanytime and anywhere.Vertical marketing network (VMN)Furthermore, to name Kotler (et al., 2001, p. 482), a franchise organization is a contractual vertical marketing network in which a channel member called a franchisor links several(prenominal) stages in production-distribution process. McDonalds has adopted the service-firm-sponsored retailer franchise network, in which a service firm licenses a network of retailers to bring its service to consumers (Kotler, et al., 2001, p. 482). Nevertheless, McDonalds caters to a large consumer market with varying tastes and thus cannot afford to introduce products without familiarizing itself with provincial preferences in food.For this reason, McDonalds distributes its products in foreign locations w ith the help of franchisors who are well aware of what works in their country. Moreover, these franchisors also provide insight to the company on its diverse customers and helps McDonalds achieve its vision of being the worlds best quick service restaurant experience. In brief, this is an extremely intelligent distribution method since it helps in providing people with the kind of products they desire, maintaining the franchise account worldwide.To encourage repeat customer visits, McDonalds are intensifying the efforts to ensure the restaurant interiors and exteriors are clean and welcoming. Moreover, McDonalds intends to regain the status as the sumptuous standard for clean restaurants. Furthermore, McDonalds are giving the business a fresh edge in many places by rebuilding, renovating and re-imaging the restaurants. The experiences in Australia demonstrate that doing such can result in improved sales and profitability.McDonalds ensures consistent products by controlling every stage of the distribution. In addition, regional distribution centres bargain for products and distribute them to individual restaurants. On the other hand, when designing its channels, a company needs to consider competitors channels. Yet, it may want to compete in or slopped to the same outlets that carry competitors products (Kotler, et al., 2001, p. 486). Thus, food companieswant their brands to be displayed next to competing brands. Meanwhile, McDonalds adopted this setting channel objective as a view and indeed wants to locate near KFC. On the other hand, McDonalds uses essentially the same competitive strategy in every country as be the first in a market and establish the brand as rapidly as possible by advertising very heavily. However, the strategy has helped McDonalds arise a strong market share in the fast-food market around the world.Moreover, according to Kotler (et al., 2001, p. 513) store must have a planned atmosphere that suits the hind end market and moves cus tomers to buy. In addition, McDonalds determine the locations for reaching a widely spread population. Hence, McDonalds are turning their stores into theatres that transport customers into unusual, exciting shopping environments that designed to meet the taste of target markets. For instance, McDonalds Blacktown is one of McDonalds Australias newest restaurants, it has create a locate playgrounds for children to enjoy.ConclusionIn conclusion, McDonalds improve the frequency of their deliveries, form relevant partnerships and implement alternate distribution strategies to effectively capture market and build international brand name based on hygienic, healthy, savoury fast food consistently worldwide. Adopting market study and focusing on location of franchise, MacDonalds ensures market niche for food product distribution is a definite success story.References Kotler, P., Brown, K., Adam, S., & Armstrong, G., 2001, Marketing, 5th Edition, Pearson Education Australia, Frenchs Forest, NSW http//www.mcdonalds.com