Distribution blu ecig Essay examples

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Distribution Strategy blu Electronic Cigarette

This section of the marketing plan will discuss the second element of the marketing mix: the distribution strategy of the blu electronic cigarette. According to businessdictionary.com, a distribution strategy is “a plan created by the management of a manufacturing business that specifies how the firm intends to transfer its products to intermediaries, retailers and end consumers”. In other words, the goal is to get the product to consumers by selecting a marketing channel that will best meet both the seller’s objectives and the distribution needs of customers. “Marketers develop distribution strategies to ensure that consumers find their products in the proper quantities at the right times and places. Distribution decisions involve modes of transportation, warehousing, inventory control, order processing, and selection of marketing channels” (Boone & Kurtz, 2011). For many reasons, the electronic cigarette is becoming extremely popular. Therefore, consumers will see many changes regarding the marketing of this product to adapt to the predicted growth of sales in the coming years. Currently, blu electronic cigarettes are in more than 100,000+ retailers nationwide, including several national retailers as well as many regional retail stores. From national chains to local shops, they are sold in every state in the U.S. Additionally, they can be found in Canada and British Columbia. The following is a list of gas stations, drug stores, convenience stores, grocery stores, and truck stops that presently carry this brand of electronic cigarettes: BP, Sheetz, Sunoco, Speedway, Circle K, Duane Reade, Walgreens, 7-Eleven, KWIK Stop, BI-LO, Meijer, Flying J, and Love’s (blu eCigs, n.d.). When the blu eCig was first introduced, sales were primarily fulfilled online. Consumers could barely find the product otherwise. The Internet, which was the dominant channel, is beginning to fade out. However, this channel will not completely diminish nor does the company want it to. Blu electronic cigarettes will experience a continued shift in sales distribution from online to an expansion of brick and mortar locations in all channels. This is primarily due to the fact that more of the traditional smokers are starting to convert to this alternative way of smoking referred to as vaping. Retailers are experiencing a loss in sales because of this conversion factor. Therefore, more and more are looking to carry electronic cigarettes in their stores to supplement the decreasing revenue and meet consumer needs. Blu plans to take advantage of this fact. It is clear that the conversion rate dictates the demand for electronic cigarettes. The demand will allow this product to be sold in many more national, regional, and local retail businesses. Blu obtains much of its information about overall industry trends, such as the aforementioned and that industry sales are expected to quadruple by 2014 in the U.S., from the Tobacco Vapor Electronic Cigarette Association or TVECA (Veiders, 2012). They have utilized this source greatly to assist them in their overall objectives. Over the next two years, blu eCigs seeks to expand distribution to a variety of retail stores that they are currently absent from such as Rite-Aid, Dollar General, CVS, Kroger, Costco, Walmart, and Shell Oil. They also will concentrate on…