Place refers to:
•
How the product arrives at the point of sale. This
means a business must think about what
distribution strategies it will use.
•
Where a product is sold. This includes retail
outlets
like supermarkets or high street shops.
It also includes other ways in which businesses make products directly available to their
target market, for example, through direct mail or the Internet.
NIVEA VISAGE Young aims to use as many relevant distribution channels as possible to ensure
the widest reach of its products to its target market.
The main channels for the product are
retail outlets where consumers expect to find skin care ranges.
Around
65% of NIVEA VISAGE
Young sales are through
large high street shops such as Boots and Superdrug. Superdrug is
particularly important for the ‘young-end’ market. The other
35% of sales mainly comes from
large grocery chains that
stock beauty products, such as ASDA, Tesco and Sainsbury’s.
Market
research shows that around
20% of this younger target market buys products for themselves in
the high street stores when shopping with friends. Research also shows that the majority of
purchasers are actually made by mums, buying for teenagers. Mums are more likely to buy the
product from supermarkets whilst doing their grocery shopping.
NIVEA distributes through a range of outlets that are
cost effective but that also reach the
highest number of consumers. Its distribution strategies also consider the environmental
impact of transport. It uses a
central distribution point in the UK. Products arrive from
European production
plants using
contract vehicles for efficiency for
onward delivery to retail
stores.
Beiersdorf does not sell direct to smaller retailers as the volume of products sold would
not be cost effective to deliver but it uses
wholesalers for these smaller
accounts. It does
not sell directly through its website as the costs of producing small orders would be too high.
However, the retailers, like Tesco,
feature and sell the NIVEA products in their online stores.
