Distribution Channell Essay

Submitted By kjziesemer33
Words: 377
Pages: 2

One of the product line strategies that have brought Hasbro global success is line filling. Hasbro feels like they need to differentiate each item in the customers mind with just noticeable differences. Take for example a video game, in Wal-mart the game system, video software, and controllers will be sold separately. However in a store like Best Buy, the game system, video software and controllers will be packaged in a bundle for retail sale. An additional example is line modernization, games like Monopoly and Clue have been slightly refreshed time and time again over the years, to keep if fresh to customers. These slight modifications also make these games more collectable for which also can be a money maker for the company.

Hasbro made a huge distribution channel change by increasing its distribution channels to mass merchants like Walmart, Target, and Toys R Us. It allows the company to move a lot of product in short amount of time. It also them to really tighten up the supply chain because you are only really dealing with 3 different supply chain channels. Right now those 5 top mass merchants make up 50% of the company's net revenue, while 20 years again 1000 different distribution channels made up 1%. In addition Hasbro also dipped into alternative distribution channels including deal stores and technology stores. In addition Hasbro has gained distribution channel insight through advance technology that gives real time supply chain management. Also…