Distribution Channels P4(a)

Meaning and Purpose

In 2012 Dreamworks and 20th Century Fox joined forces to provide a mutely beneficial business arrangement. This symbiotic relationship meant that both businesses became stronger and more profitable and Fox provided invaluable distribution logistics for Dreamworks company.  

A distribution channel is the process of making a product available for the use of a consumer or business user.The meaning of distribution channel is the chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. A distribution channel can include wholesalers, retailers, distributes and even the internet.

Distribution of products takes place by means of channels. Channels are sets of interdependent organisations involved in making the product available for consumption to end-user. Merchants are intermediaries that buy and resell products. Agents and brokers are intermediaries that act on behalf of the producer but do not take title to the products.

A firm can design any number of channels they require. Channels are classified by the number of intermediaries between producer and consumer. A level zero channel has no intermediaries. This is typical of direct marketing. A intermediary is a third party that offers intermediation services between two trading parties.

DreamWorks Animation is a huge company which cooperates with different retailers. It could be big film companies or it could be different groceries like ASDA. This is important for this company to sell use different retailers, because the highest percentage of their income is based on merchandising, therefore they need to use avery big retailer which have an influence on some customers. 

How to train a dragon with be sold through various stores in the UK, as shown in these images:

HMV -  is an English entertainment retailing company operating in the United Kingdom.  It was founded in 1921. This retailer helps DreamWorks pictures to sell some products like DVDs, toys, earphones ( which is made by DreamWorks ) and Computer games.

Tesco - is an English grocery and general merchandise retailer which have been found in 1919 by Jack Cohen. This retailer helps DreamWorks pictures to sell some products like DVDs, toys, magazines and birthday cards.