Channel management

Developing and Managing Channels

of Distribution

Produced & Manufactured By:Eshant Sharma

Channel Of DistributionA channel of distribution refers to venue that a company chooses for moving its products or services out into the world.

SUPPLIER

Distributor/Wholesaler

Broker

Retailer

Supplier own sales & distribution

CUSTOME

R

Retailer

Channel Stewardship Channel Stewardship refers to planning and responsible management of channel of distribution.

Decisions about channels

Design DecisionManagement

Decision

Channel Steward

Group of senior managers

Ensure customer

satisfaction

Create value for customer

Disciplines of Channel Stewardship

Mapping the Industry Channels

Building and Updating the

Channel value Chain

Aligning & Influencing the

Channel System

Mapping the Industry Channels• In Channel Stewardship mapping a given industry’s

channel calls for understanding the major forces that drive the short term and long term distribution channels in that industryCustomer wants

and needs

Channel power and influence

Competitive posture & action

Channel capabilities & cost

Building & Updating Channel Value Chain• This principle helps in refining the first principle so that it

is more effective in meeting its channel goals.

Direct vs Indirect

Channel coverage Channel structure

Constructing a channel value

chain

Aligning & Influencing the Channel System

• This principle is regarding the implementation of the carefully build & updated channel value chain.

Hard Power

High performance channel system

Managing horizontal channel

conflict

Soft power of trust & commitment

Rise of Online Channels

USA estimated sales$225.5 billion (2012)

Up by 15.8 %

2011 - $500 BillionGrow 9% till 2017

2014 - $1.5 Trillion

Some Facts Regarding E-Com in USA

C omputer s Appa r el s B ooks Auto & pa r ts

35.7

28

14.4

16.2

41.9

34.2

17.2

17

48.6

41

20.4

18.3

80.2

73

34.7

24

USA E-Com Sales2010 2011 2012 2016 E

Conclusion