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Automobile manufacturers such as ford and general motors often use indirect distribution, such that dealers act as retailers.
What is Indirect Distribution?
Indirect Distribution is a method of distribution used by a manufacturer that involves one or more third parties (intermediaries) who assist in delivering goods to consumers. Third-party providers typically include exporters, importers, wholesalers, and retailers. Retailers obviously sell the manufacturer's products, but they may also sell the products of competitors. As a result, as a manufacturer, you have little to no control over what other products are sold in stores.
What is a Distribution Strategy?
A distribution strategy is a method of getting products or services to customers. Choosing the most efficient distribution method for your company is critical to increasing revenue and retaining customer loyalty. To cater to different consumer bases, some businesses choose to use multiple distribution methods. For example, if you're selling a leather futon and want to target people aged 60 and up, you might choose to sell products directly through a catalog. You may decide to sell products indirectly to a younger customer base by partnering with a retailer such as Walmart.
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