Marketing

Distribution strategy

An indirect distribution approach is utilised by Weet-Bix, whereby once manufactured they use such retailer companies as Coles and Woolworths to be the intermediary selling stage for their product. Once distributed to these grocery stores the consumers can then purchase the product from their local intermediary companies. Weet-Bix is distributed over multiple grocery and convenience stores all around Australia giving them a large degree of distribution. This large number of intermediary companies is beneficial as “intermediaries may provide market access that would otherwise be very expensive or impossible for the firm to secure” (Capon, 2007). This corporate channel of distribution employed by Weet-bix makes the shopping experience for consumers simpler and makes the purchasing of their product more efficient. This method delivers the Weet-bix product to the consumers in a setting that they feel comfortable purchasing in. Cereal is not a specialty item and is not an individually sought out item so consumers will purchase it along with other grocery products. Customers that shop at retail grocery stores want to compare and contrast the product and having Weet-Bix there gives them the opportunity to choose one brand over others and this is where the marketing strategies from Weet-bix will play a large role. The promotional, packaging and pricing strategies that Weet-Bix have chosen to use will influence the consumers on the first level to choose their product or at the least become interested in the product. However, once the manufactured good is sold to the retailer a lot of the risk and burden of selling the product now falls onto the retail company, so Weet-Bix share the responsibility of sales with their intermediary establishments.