Marketing and Logistics Model of Distribution in the Food Market

Abstract

The aim of the article is identifying the nature and characteristics of distribution in the food market and justifying the use of marketing and logistics distribution models for manufacturers and commercial intermediaries of food products. It is determined that distribution is an important part of marketing of finished food products, and the net result of the enterprise’s operation will depend on its effectiveness. Therefore, the logistics component, related to the organization of the physical movement, warehousing and storage of raw materials and finished products, also falls within the competence of marketing. It is established that the essence of the marketing logistics approach to enterprise management is the combination of the marketing mix and the logistics mix and involves the delivery of the right product to the right place, at the right time, and at a price lower than that of competitors. The changes in the structure of the wholesale turnover of the Ukrainian market over time are analyzed, and a high level of self-sufficiency of the country in terms of the main types of food resources is revealed. An upward trend in the retail trade turnover of food products is noticed, and the main factors affecting its behavior are singled out. The main advantages of the cooperation of food producers with distributors and the benefits of retail traders from such cooperation are identified. The key marketing strategies used in the food market, in particular, intensive, selective and exclusive distribution, are considered. The basic marketing and logistics models of distribution in the food market are defined, namely: direct (direct delivery of goods by the manufacturer to the consumer), indirect (using the services of a distributor as a commercial intermediary between the manufacturer and the consumer) and mixed one (using both direct and indirect models of distribution of goods). Moreover, the main factors that influence the choice of the model are analyzed.

Keywords

• food market
• marketing
• logistics
• distribution
• sales