The refers to the system in which there is moving of products from the manufacturer to wholesaler and then to the final users. It is becoming a trend towards direct distribution in many industries. It is so because there is the availability of plenty of benefits from the system compared to other supply chain structures. So, you need to know about what are the main perks of the distribution model that you will get in marketing.
The following are the main benefits of the secondary tier distribution model. There is a need to understand them so that you can also take advantage of the model. So, let us explore the following information in order to get the desired results in marketing and creating awareness about the brands.
- Fast incremental expansion
Through the Secondary-tier distribution model, there is no doubt that the manufacturer can develop new distribution networks. It will allow them to expand their sales and distribution with an effective retail distribution network. As a result, the marketers and manufacturers can expand their market reach by contacting potential retailers and wholesalers. Instead of trying supply chain development, they can use the secondary tier distribution model for fast and incremental expansion.
- Market shift with a secondary -tier distribution model
The secondary tier distribution model allows quick action for increment expansion. Along with it, there is the availability of a low market shift. For example, if the manufacture needs a new application for the branded products, then the secondary tier distribution model will make it possible for the manufacturer. There is the development and repackaging of the products. It is done to increase the sales in the market if you are a new manufacturer. So, you can consider it as another benefit available using the secondary tier distribution model.
- Concentration on the product
According to the father of modern economics, the concept of specialisation and trade are essential parts of the sales channel. It is necessary to concentrate on the areas if you want to get a competitive advantage. The specialisation in a particular product on the market will allow you to stay ahead in the competition. Instead of being an expert manufacturer, you need to concentrate on unique and different manufacturing techniques. It will offer you benefit as per expectations.
- Time and logistics with a secondary -tier distribution model
Last but most important, you need to pay consideration to the time and logistics of the secondary distribution model. It will allow you to get the best out of the manufactured products. When the manufacturer has a direct distribution channel, then the meeting of the needs of the customers is possible immediately. It is a great advantage you will get with the secondary -tier distribution model.
The Bottom line
So, the stated are the benefits of the distribution model that you need to know. Thus, it will increase the sales for the manufacturers with a direct distribution channel.