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Essay / Film Distribution Channels in Indonesia - 1180
Choosing a Right Channel for Film Industries in IndonesiaINTRODUCTION This article attempts to research the possibilities of developing commercial distribution links for alternative films in Indonesia for the present and future future. Although on a large scale, alternative cinema falls into the non-commercial domain and obviously requires external support (due to its important avant-garde characteristic in cultural development and cinematic expression), but if we try to see on the commercial distribution side of these films, they can be a supporting factor to the world of alternative film development in Indonesia, this also opens the possibility for the development of alternative filmmakers themselves. .LITERATURE REVIEW OF MAIN QUESTION Distribution Channel Distribution channel is a set of interrelated organizations involved in the process of making a product or service available for use or consumption (Kotler, 2006). The advantages of the chain Instead of doing everything in a house by the producer himself, the producer benefits from several advantages if he wishes to use intermediaries. Here are the advantages (Kotler, 2006): Many producers do not have the financial resources to conduct direct marketing. Producers who create their own chains can often get a better return by investing more in their core business. In some cases, direct marketing simply isn't feasible. *Distribution Channel Strategy* (www.tutor2u.net) Factors that influence a company's choice of distribution channel: The willingness of channel intermediaries to market products is also a factor. Retailers in particular are investing heavily in real estate, store design, etc. They may decide not to support a particular product if it requires too much investment (e.g. training, display equipment, warehousing). Another important factor is the intermediate cost. Intermediaries typically charge a “markup” or “commission” for participating in the channel. This amount could be considered unacceptable for the final producer. A key question is whether the producer has the resources to fulfill the functions of the chain? For example, a producer may not have the resources to recruit, train and equip a sales team. If this is the case, the only option may be to use agents and/or other distributors. Producers may also feel they do not have the skills needed to distribute their products. Many distribution intermediaries focus heavily on the customer interface as a means of creating a competitive advantage and solidifying the relationship with their supplier producers..