Potential distribution channel for Hellers to reach the upper middle class urban consumers

 

Products as well as consumers go through some form of distribution process in all countries and markets. Potential international distribution channels is a system of marketing institutions that promotes the physical flow of goods and services, along with ownership title, from producers to consumer ore business user; also called a marketing channel, is a link between an organization and its customers in market around the world .

 

For Hellers to be able to reach the upper middle class urban consumer in Indonesia they will have to consider either:

 

• Deciding to sell directly to the Indonesian urban consumers by using their own local sales force or through the internet, or

• They should use the resources of independent intermediaries such as the local expert agents in Indonesia, which is known as the indirect distribution channels.

 

Hellers should be aware that the selection of distribution channel is affected by different factors, which play a significant role while choosing the channel for distribution, it may include the buying pattern of consumers, type of the product if is perishable or not, is it auto mobile, the weight and bulk and it also depends on the company’s resources.

 

Hellers is advised to adopt the indirect distribution channel at first by using expert agents or export merchants that will stand in position between Hellers and its customers. Although they may not have full control over their products at the initial stage, but as soon they have fully penetrated the local urban customers in Indonesia then they can decided to establish their own local sales force by using direct distribution channel to meet up with the need of their consumers.

Consequent to the above, they should make sure they carefully screen the agent by making sure they are giving the sales contract to the right agent and as well develop an agreement with the agent before commencing operation. Below is the recommended potential distribution channel for Hellers to reach the upper middle class urban consumer in Indonesia.