Question 1
What are the likely advantages of Ramly Burger of using the agents as its main distributor especially to large retailers?
In understanding marketing channels, it is important to know the reasons for the existence of channel structures. These structures typically called intermediaries because they stand between production on one side and consumption on the other. Intermediaries also known as an agent. Channels evolve through the need for specialized functions which can be performed more efficiently by agent. By breaking down a complex distribution task into smaller, simpler ones, and dividing them among agent who specialize in particular functions, there is likely to be greater efficiency in the overall distribution channel.
[pic] A distribution channel may be direct or indirect in nature. Obviously, Ramly Burger using the indirect distribution channels, on the other hand, used the services of agent to move products to end-users. There are many advantages of using the agent. By using an agent Ramly Burger will appoint them to be one of their distribution channels. For example, we take a look at Tesco. Ramly Burger will supply their entire product to Tesco like beef burger, chicken burger, French fries, hotdog, sausage Chile sauce, tomato sauce and many more. In one situation, during Hari Raya Aidilfitri, customer want to serve their guest with fried mee. They can get all the ingredient by only visit Tesco. The ingredient that customer want to buy including Ramly Chile sauce. They do not need to go to the Ramly Burger manufacturer but they can just buy it at Tesco. By then Ramly Burger can get the efficiency in market coverage. By having an intermediary, Ramly Burger can reduce the number of transactions that is needed.
As we know, customer is normally is an individual. When they buy the product they rarely buy in a bulk. For example, customer name Ali work as a clerk. In the night he will sell burger in the stall in front of his