Alternative Retail Outlets

 

There are many ways to distribute products once they have been produced. These marketing channels need to be set up before production, not after. These include large chain stores, mailorder sales, neighborhood stores, roadside stands, and door-to-door sales. Alternative retail outlets can help producers reach a specific consumer group with income levels suitable to the product, ethnic preferences that match the products, and lifestyles that are served by the products. Different retail outlets that will be able to sell products should be considered.

 

Large chain stores

These stores can provide an opportunity for a larger number of consumers than a local store. They offer thousands of choices of different products from which consumers must decide to spend their money. Large chain stores usually require large quantities of a product delivered at specific times to specific places at predetermined prices. Getting shelf space can require substantial fees.

 

Neighborhood stores

These stores often work with local producers if the managers feel the products will be accepted by their clientele. Each store has developed a clientele unique to that store, and new products have to be a part of that image.

 

Specialty stores

Specialty stores are often single-line stores or discount houses that, like neighborhood stores, have a unique clientele. Again, the products must match the clientele and image of the specialty store.

 

Roadside stands

A roadside stand may be an alternative for fresh products or other seasonal products, such as jams, jellies or pickles. These are open for part of the year at a time when consumers are willing to drive to a specific stand to buy them.

 

Mail-order sales

When using mail-order outlets, sales volume can be controlled by the number and type of catalogs sent. When using mail-order catalogs, it is important to know the number distributed and the characteristics of the readers. If, for example, 400,000 people receive the catalog, and 1 percent of them order the product, that means there will be 4,000 orders. If 5 percent of them order the product, there will be 20,000 orders. Producers need to understand and be prepared for the potential volume of mail orders. Conversely, there could be very few sales, and there could be products left over.

 

Government contracts

Government contracts cover such outlets as prisons, military bases and government cafeterias. Contracts with various government purchasing agencies can provide sales opportunities as long as government specifications are met. When formulating distribution plans, be sure to inquire about terms of sales. Some large discount chains and government procurers do not pay within 30 days. In fact, sometimes payment is not received for at least 60 days. Marketers must take this into consideration when planning cash flow statements and making marketing plans.