PLACE DISTRIBUTION STRATERGY USED BY JEEP Jeep Cherokee and in fact all the othermodels that JEEP company sells werefirst originally sold in America only, the company expanded to Europe, set upsome new plants for manufacturing of the Vehicles.
They then increased theirdistribution to many parts of Asia and South Africa too. They recently startedtheir business (distribution) in India too. First Manufacturing used to take place inAmerica only but then expanded manufacturing as the company expanded theirdistribution circle.
Right now they manufacture in CHINA, BRAZIL and JAPAN. Demand from Europe flooded so that is whycompany has to set up a new plant in ITALY too, to meet the needs of thecustomers in Europe. This plant was recently set up in 2015.JEEP takes help from franchised dealers toreach the maximum customers.
SUGGESSTIONS Jeep should be manufacturing in thecountries where the capital investment of setting up a plant is least andshould also see that the exporting taxes that the government lays there isminimal. And plants need to be set up in the areas where government givesprivilege on various things like taxes. Countries like Bangladesh, China, Japan andnow India, looks out to be perfect for manufacturing the product, being adeveloping country they tend to seek new businesses popping in and giveprivileges like no other country does. Now let’s talk about the distribution, theclass of quality that Jeep offers is the best in the segment and thedistribution strategy they follow with this is not up to the mark.
The sponsordealership is good but to have a different lookout for their products they needmore personalised dealership to match their vehicle’s quality. Online marketing is the thing we cannotjust neglect in time we are living in. Selling the product online and encouragingcustomers to build their own product (Built your own car option) and getexactly what they are looking for is a perfect plan to get the employees tolove and buy the product. -by HARPREET SINGH