Comparing The Distribution Channels Of Ocado And Keepsake

Using the two businesses discussed in P2, you need to compare the distribution channels of the businesses in question. Possible ideas to compare include:
Introduction: in this task I have been asked to compare the similarity’s and differences of the two businesses I had looked at in the previous piece of work. The two businesses I will be looking at will be Ocado the online supermarket and Keepsake flower shop in yaxley.
The first point I will be talking about will be on the importance of speed and the channel of distribution of Ocado and Keepsake. The first similarity I will be talking about is the fact that both of these businesses are selling perishable goods to their customers. An example of this is Ocado, they sell a range of foods which

This refers back to the importance of speed in these two businesses. Speed is essential for both theses company’ because the product have to be delivered to the consumer in a certain amount of time before the product goes off. Another similarity between both Ocado and Keepsake are that they both use similar channels of distribution. The two distribution channels that they use are Manufacturer - retailer – consumer, this is the most commonly used channel of distribution. The other channel of distribution is Retailer - retailer. Ocado get their products from the manufacturers of Waitrose which are delivered to the Ocado warehouse, from there it is then dispatched to the consumers’ homes. This is the same with Keepsake, they acquire their products from manufacturers abroad and then have it shipped over to their store in yaxley. Customers then place and order for it to be delivered or they are able to go instore and get their purchase. However a difference between the two businesses are that Keepsake use wholesalers to get their flowers and other products whereas Ocado get their stock from retailers from Waitrose and

The similarity’s that both of these business face with their products is that they both sell products that are temperature sensitive, when I talk about temperature sensitive I mean that many products have to be keep in a chilled space to make sure that they don’t go off before they get to the customer or consumers. The problems that Ocado face when it comes to temperature sensitive conditions is that they sell products which can go off after a certain time period so having them kept in a cold ware house to keep chilled or even refrigerated for the frozen goods they have, This also applies to the owners of Keepsakes. When it comes to keep sakes the temperature of where they store the flowers need to be in a healthy environment which will keep the flowers fresh and will help them to survive long enough to get to the customers safely. However the differences of the temperature sensitive storage of Keepsake and ocado is that ocado need refrigerators to keep their products frozen and ready to get shipped to the customers whereas with Keepsakes the flowers in a cool location away from sources of heat such as household appliances or radiators, direct sunlight such as windowsills and drafts from windows or doors. The next comparison of keepsakes and ocado I will be making is how much