Distribution Challenges in Latam Flashcards
which are the 3 ways to distribute your product in LA markets?
1) local partners
2) distributors
3) greenfield strategy
what are the benefits of ditributors?
4
- popular method
- allows consumers to gradually hear about a product
- strong distributors can build loyality soon
- expansion can be gradual (schrittweise)
pros and cons of greenfied strategy
Pros: operations are closer + could allow country specific products
Cons: danger of not taking cultural factors into account + very expensive when they fail
where to distribute your product?
malls, supermarkets, e-commerce
what are the 3 factors influencing the success of Malls
increases income levels,
urbanization,
growing population
what is the issue with logistics?
1) Infrastructure
2) Cold Chain
3) Storage
what is the issue with infrastructure?
- the quality of the infrastructure, which is essential for the efficiency, speed and reliability of any logistic system
- Securtiy RIsks on the Rise, such as cargo theft, damage and contamination in some countries
to improve: investment is needed in modernizing and expansion!
where does the cold chain play an important role?
agriculture and pharmaceutical industries.
majority transported by air, but lack of capacity and infrastructure
how about the storage aspect?
as transporting agricultural products to (air)ports face bad road/infrastructural conditions as well as lack of refrigerated trucks, spoilage is high (Verderben)
also consider: where to keep inventory? operate in own warehouses or logistic services?
what are the challenges with parcel deliveries ?
language barriers, payment barriers, lack of/poor infrastructure, customs processes like tolls
new/future challenges in distributing your product
- increase adoption of technology
- climate change
- problems with shipping routines: Panama Canal restrictions; turbulences in red sea
- adapt conditions!!
only 1,5% of GDP as investment in transport infrastr.
global average 3,8%
