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1. Match the words or phrases on the left with the definitions on the right.

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2. Find the words in the text meaning the following:

Point of sale; agent, dealer; to improve; considerably, evidently; to change, to diversify; knowledge, proficiency; lawmaking; accepted, common; limits; display

3. Comprehension/interpretation:

1. What are the types of channel of distribution?

2. What is one of the fundamental issues of distribution planning? 3. What are the alternative physical channels of distribution?

4. What makes channel objectives differ from one company to another? 5. What factors can influence on characteristics of the channel?

4. Give explanations to the following.

Physical distribution channel Trading (transaction) channel

Manufacturer via manufacturer's distribution operation to retail store Manufacturer via retailer distribution centre to retail store Manufacturer to wholesaler to retail shop

Manufacturer to cash-and-carry wholesaler to retail shop Manufacturer via third-party distribution service to retail shop

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Mail order

Factory to factory/business to business

5.Fill in the gaps with missing prepositions.

1.The trading channel, however, is concerned ____ the non-physical aspects ___

this transfer.

2.There are several alternative physical channels ___ distribution that can be used, and a combination ____ these maybe incorporated _____a channel structure.

3.The products are trunked (line-hauled) ___ large vehicles ___ the sites, where they are stored and then broken _____ ____ individual orders that are delivered to retail stores ___ the supplier's retail delivery vehicles.

4.They were generally begun ____ the basis ____securing a price advantage ____

buying ____ bulk _____ manufacturers or suppliers.

5.These are usually built _______ a wholesale organization and consist ___ small independent shops collecting their orders ____ regional wholesalers.

6.A broker is similar ____ a wholesaler ____ that it acts as intermediary ________

manufacturer and retailer.

7.Goods are ordered ____ catalogue, and delivered ____ the home ____ post or parcels carrier.

8.There would be no point ____ distributing this product _______ a small selfservice store where no facilities can be provided ____ a demonstration.

6.Complete the following passage with the correct form of the words below.

The most common channel decision for those operating in physical distribution is whether to use a third-party distribution or logistics service, or whether to run an 1)_______ (in-house) distribution operation. Third-party logistics has been an important 2)_______ in the UK for many years. Across most of continental Europe and also North America, the use of third-party logistics 3)(_______) service providers has also grown significantly.

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The own-account/third-party decision is rarely a straightforward one, especially as there are a number of different types of third-party 4)_________ operation available.

The main ones include the following:

•Dedicated (or exclusive) distribution operation. This is where a complete distribution operation is provided by 5)_________. The third party undertakes to provide the customer with all its distribution requirements, exclusively, on a national or regional 6)_______. The resources used will include warehouses, distribution centres, 7)_________, managers, etc. These are obviously 8)

_________ to very large companies. This type of service is very 9)________ in the UK and has now been developed across the rest of Europe and North America.

•Multi-user (or shared-user) distribution operation. Multi-user distribution operations are 10)_______ dedicated operations, the principal difference being that a small group of client companies is catered for, rather than just a single client. One of the 11) ________ of this type of service is that ideally the clients are all manufacturers or suppliers of goods and their products are all 12) ________ to the same or similar customers, for example grocery products to grocery stores, supermarkets, catering establishments, etc. These are also known as 13) _______

operations. The advantage of this approach is that expensive 14) ________ are shared between the clients, so all parties enjoy the benefits.

•Specialist distribution operation. These distribution operations are used for the 15) ________ and movement of products that require special facilities or services, and the distribution operation run by the third-party company is especially 16)

_________ to suit these needs.

•Regional multi-client distribution operation. These operations are provided for any 17) ________ of clients and for most product types. They are usually provided by a 'general' third-party distributor that has probably started as a very small operation and grown into a regional operation concentrated in a specific small 18)

______ area.

•National multi-client distribution operation. This category is very similar to the 19) ________ one, a service being provided for any number of clients and product types. The main difference 20) ________ to the size of the operation. This is nationwide, and would include a 21) ________ (line-haul) operation between the

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companies' sites, so that if necessary a client company can have a delivery service to anywhere in the country.

•Satellite or cross-docking operation. These are operations where the 22)

_______ is not involved in the storage of any products, but is only providing a collect, 23) ________ and delivery service. Thus, no unordered 24) ______ are held, although some minor stock-holding may occur for a limited number of product lines.

•Joint venture. A limited number of operations have been set up whereby a thirdparty operator and a client company form a separate distribution company called a joint 25) _______. This may occur where a company with its own distribution operation has some 26) ________ resources. It will then 27) ________ up with a third-party operator and offer the services on a wider basis. This has occurred in the hanging goods and the high-tech sectors.

•International distribution operations. These may be dedicated but are most likely to be 28) ________, enabling a client to achieve international movements between sites and delivery to final customers over a broad international area. It is still very difficult in a European 29) ________ to find a single third-party operator that can provide such a universal service.

•Occasional use. Many companies use third-party services on an 30) _______

basis or as an aid to support their own-account operations. There are a number of reasons why a company might do this: to 31) ________ seasonal peaks in demand; to cover weekly demand peaks; for non-standard products that don't fit easily into their own operation (very small or very large products); to deliver to 32)

_________ geographic areas where there is only limited demand for their products; or for non-standard operations (returns, collections, etc).

7. Translate the following from Russian into English.

Штучные грузы могут быть классифицированы по следующим признакам:

по способам транспортировки (перевозимые в крытом и открытом подвижном составе); по назначению и отраслям народного хозяйства (металлы,

оборудование и приборы, электротехнические товары, бумага и целлюлоза, строительные материалы, каучук и резинотехнические изделия, пластмассы и химматериалы, тарные нефтепродукты, пенько-джутовые

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изделия, изделия лёгкой промышленности, промышленные товары широкого потребления и т.д.); по способам складирования и переработки: грузы открытого и

закрытого хранения, тарно-штучные (генеральные – по терминологии морского транспорта), длинномерные, крупногабаритные и тяжеловесные, самоходные машины; по типу и параметрам упаковки и транспортной тары: без упаковки и

тары; в жёсткой, мягкой, полужёсткой упаковке; в ящиках, обрешётке, картонных коробках, мешках, бочках, флягах, бидонах и т.д.; по типу и параметрам грузовых транспортных единиц: в связках,

пачках, отдельными штучными местами в транспортной таре, в транспортных пакетах на поддонах 1200х800 мм или 1200х1000 мм.

Штучные грузы характеризуются следующими основными параметрами:

-размеры отдельных мест грузов (длина, ширина, высота), мм;

-масса отдельных мест грузов, кг;

-объемная масса грузов, т/м3;

-форма грузов (наиболее часто встречающиеся – прямоугольный параллелепипед, цилиндр, кольцо, лист, сложная или неправильная форма);

-характер и свойства тары и упаковки (жёсткая, твёрдая или мягкая, упругая, податливая, сминающаяся и т.д.);

-число наименований грузов (в упаковке, грузовой транспортной единице, транспортной партии);

-число мест в транспортной партии и общая её масса, кг.

Следует отметить, что сыпучие, жидкие и газообразные грузы, затаренные в некоторую тару (мешки, бочки, барабаны, баллоны и т.д.), рассматриваются как тарно-штучные грузы с позиций их транспортирования, перегрузок и складирования.

Вопросы упаковки тарно-штучных грузов регламентируют примерно 100 государственных стандартов. Согласно ГОСТ 17527-86 «Упаковка. Термины и определения», упаковка – это комплекс защитных мер и материальных средств по подготовке товаров к транспортированию,

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хранению и использованию. Упаковка – это более широкое понятие, чем тара и включает в себя потребительскую и транспортную тару, средства пакетирования и контейнеры, прокладочные, амортизирующие и вспомогательные упаковочные материалы.

8. Read the case and answer the questions.

How to find Proper Distribution Channels for your Products: A Case Study of Chongqing Beer

Factors to be considered in finding proper channels

In order to deliver products promptly into customers and obtain instant feedback from them, proper channels should be found for the products. Chongqing Beer (briefed as CQ Beer) is taken as an example. The following factors should be taken into consideration if the beer enterprise is to find proper channels for distribution of its products:

1. Convenience

- In order to enable customers to access CQ Beer easily, the beer enterprise should emphasize on convenience.

2. Closeness

-The closeness of distribution channels should be in conformity with quantity demanded of CQ Beer target market.

-It may cause some inconveniences to its customers as the number of distribution channels are too few, while too many distribution channels may increase its operating cost.

-It is difficult for the customers to search the locations of CQ Beer retail stores in a region because the distance between each single retail store is very far. In contrast, there is a keen competition on business performance in each store when there are too many CQ Beer retail stores in a region.

-It increases its operating cost as more and more CQ Beer retail stores are

established in a region. It does not align with its existing marketing strategy and brand identity.

3. Methods of Product Distribution

-Methods of product distribution usually include franchise, sole agent and eCommerce.

-Sole agents of beer products in China provide different kinds of services and their service quality is tremendous. Not only brand identity of CQ beer is

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affected by sole agent' services but also the management of beer enterprise. It is difficult to confirm if the sole agent promotes its beer products in its expected way or not.

-The eCommerce has not been fully developed in China. It remains at the stage of webpage promotion of products or services. Customers cannot do any virtual transactions through internets or the networks of e-Business. It slows down the development of proper distribution channels of CQ Beer.

-CQ Beer may franchise its distribution channels, not only to increase its incomes, but also to minimize its operating cost and unify its operation mode

so as to enhance its brand identity. 4. Location

-There are two principles of selecting favorable locations or areas: the first is to determine suitable locations or areas before searching for its target customer groups; the second is to seek the target customer group before determining suitable locations or areas.

-As CQ beer enterprise is going to expand its market, it is better for the enterprise to search its target customers of different quality of products before searching for the most suitable areas to locate the retail stores.

I would like to illustrate the relationship between different consumption levels of customers, their buying behavior and product positioning as well as selection of distribution channels in the following table (Table 1).

Table 1 Relationship between different consumption levels of customers, their buying behavior, the selection of channels and product positioning of CQ Beer

Distribution Channels of China Beers

Distribution channels of beer products are usually divided into the following categories:

1. Night time channels

-The channels are KTV, night clubs, discos, bars, Chinese restaurants, bathhouses and Western restaurants

-More young beer consumers stay at night places. The volume and profit

making of selling beer products are improved. 2. Instant drink channels

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-The channels are big restaurants, chain hot pot restaurants, Chinese restaurants of hotels, small restaurants, sidewalk night snack booths, mobile booths, etc. These are the main channels of selling beer products.

-Beer enterprises usually spend a lot of money on the following ways: entrance

fee, buy-off fee, open-bottle fee, fee for locating promoters and fee for playing lottery or providing free gifts to the consumers, etc.

3. Day time channels

-The channels are shopping malls, chain supermarkets, convenient stores and retail stores, etc.

-Different kinds of beer products of the same product brand are displayed in the supermarket.

-Nowadays, some consumers prefer to buy their favorite beer products in small retail stores such as stores managed by couples or families. Their importance in retailing is considerable but influence little in the total sales and promotion of brand names.

Then, what problems will come up with different structures of channels. Please read the following analysis.

Problems come up with different structures of channels

The first problem is that the beer enterprises have to spend a lot of money on product promotion.

-Using CQ Beer as an example, in order to display its beer products at prominent places on the shelves of supermarket, marketers should provide shop managers of chain supermarkets with many favorite terms of supply and payment, even they may have to pay the fees for putting their products on shelves.

-Furthermore, marketers have to provide the person in charge of bars and restaurants refrigerators as free gifts and they pay fees for power supply, land occupation and also deposit payment for quality assurance. If marketers recruit and station promoters on the sites, they have to pay not only the fees for buying off its products but reserving the whole site for promotion, and the management expenses.

-If marketers promote its products to the restaurants of the hotels, they have to pay hotels the fees for opening bottles and personal marketing. Its products will be withdrawn if the sales performance is poor. Under this circumstance,

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CQ Beer has to spend a lot of money to conduct promotional activities on its products so as to increase its sales volume.

The second problem is that the beer enterprises have to monopolize the instant drink channels

If CQ Beer enterprise is the sole supplier of wines and beverages to the restaurants of hotels, these restaurants will be the only channels for promoting its beer products. It can squeeze out other brands of beer products out of this market.

Variations on Structures of Distribution Channels

As the above mentioned problems are in the existing channels, causing drawbacks in the China beer market competition, we find three variations on structures of distribution channels are shown as follows:

1.Change the Distributors conflict with the breweries on profit earning because they monopolize the distribution channels.

In addition to expensive costs of retailing and product promotion, big beer enterprises prefer to distribute their products by multiple channels or their own channels, such as CQ chain bars and CQ 24-hour convenient stores.

2.Integrate the distributors' resources rather than utilize their resources

-Some new domestic beer enterprises still rely on distributors to develop their markets. As some rich distributors are strong in their financial strength and market influence, they put a lot of pressures on new enterprises.

-As the new beer enterprises refuse to accept the pressures from distributors, they request the distributors to pay cost and freight for them only. They take

up the duties of sales management, market development and promotion by themselves.

3. Interflow of Information through Electronic Networking

-Many distributors send their requests to beer enterprises on delivery, human resources allocation, capital investment and governance by internet. The beer enterprises need to install information systems to provide distributors reliable backup services.

-In order to understand the changing market environment and flows of distribution, beer enterprises should enhance the communication between the distributors and them by setting up the electronic network. As more information will come through the electronic network between beer market