Ivory Soap Distribution Channels (Essay Sample)

Ivory Soap Distribution Channels
A distribution channel refers to a chain of intermediaries through which a product passes until it reaches the final consumer. It can include retailers, wholesalers and even the internet. Channels of distribution play a very vital role in achieving the marketing objectives of an organization’s manufacturer of a product creates product while distribution channels on the other hand create place and time utilities. Ivory Soap is one of the products manufactured in the US that passes through a number of stages before it reaches the final consumer. Ivory Soap is a personal care brand that was created by the Procter & Gamble Company (P&G). The supply chain of this product can reveal the various stages the soap goes through before reaching the final consumers.
The Supply Chain
The Ivory soap contains primarily sodium cocoate, sodium tallowate or sodium palm kernelate, water, sodium silicate, sodium chloride, magnesium sulfate, and fragrance. The company obtains these ingredients from its laboratories. With the help its technicians, the soap is manufactured.
The company then sells the soap through wholesalers and through the internet. With regard to wholesalers, they buy large quantities of soap from the company and then sell it in smaller units to retailers. Retailers then sell the soap to final consumers at their local stores. (Bowersox et al, 2002)
With the advent of the internet, Procter and Gamble also sells the Ivory Soap online at the P&G eStore. The main advantage of selling online is that it eliminates about the 40 percent trade intermediary margin. This enables the company to either pass the savings to final consumers or pocket the margin for themselves.