Distribution Final PPt

7/31/2019 Distribution Final PPt

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Group-2

NAME ROLL NO.

Pratik 9

Kiran 10

Priyanka 11

Mayoor 12

Rachit 13

Naresh 14

Yogesh 15

Neha 16


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Distribution Objectives

Minimize total distribution costs for a givenservice output

Determine the target segments and thebest channels for each segment

Objectives may vary with productcharacteristics e.g. perishables, bulky products, non-standard

items, products requiring installation &maintenance


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Distribution Functions

Functions

Value

added

service

Financing

Transfer

of owner-

ship

Makingproduct

available

Negotiation

Risk

Taking


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Levels of Distribution

Intensive Distribution-Distribute from as many outlets as possible to

provide location convenience.


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Selective Distribution-

Requires finding out suitable resellers to stock &sell the product.


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Exclusive Distribution-Requires limited number of resellers in marketto maintain high level of service quality.


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Types of

distribution

channel

Indirect

distribution

channel

Hybrid

distribution

channel

Direct

distribution

channel


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Direct Distribution Channel

DIRECT MARKETING

SYSTEMS

FOR EXAMPLE- WEBSITE

DIRECT RETAIL SYSTEMS

FOR EXAMPLEHINDUSTAN

PETROLEUM


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Personal Selling System


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Indirect Distribution Channel

Indirect distribution channel involves middleman forthe distribution of products to the customers.

The Indirect distribution channel can be divided intwo parts:

Single Party Selling System

Multiple Party Selling System


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Basic Channels of Distribution

Manufacturers/products

Agents/brokers

Wholesalers/distributors

RetailersRetailers

Consumers and organizational end users


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Hybrid distribution Channel In the past, many companies used a single channel

to sell to a single market or market segment.

Today, with the proliferation of customer segment

and channel possibilities, more and more

companies have adopted hybrid distribution

channel.

Such hybrid distribution marketing occurs when a

single firm sets up two or more marketing channels

to reach one or more customer segments.

The use hybrid distribution channel increased

greatly in recent years.


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Hybrid Distribution Channel

Combination of more than one distribution channel to reach

customers is called as Hybrid Distribution channel.

Producer

Consumer

segment 1

Consumer

segment2

Business

segment 1

Business

segment2

Retailers

Distributors

Dealers

Telemarketing Internet Own sell

force

Distributor and

Dealer


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Hindustan Unilever LimitedIndia's largest Fast Moving Consumer Goods

company, touching the lives of two out of threeIndians with over 20 distinct categories in Home

& Personal Care Products and Foods &

Beverages.


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PHASE -1

The first phase of the HUL distribution

network had wholesalers placing bulk

orders directly with the company. Large

retailers also placed direct orders. The company salesman then distributed

the products to the respective wholesalers,

against cash payment, and the money wasremitted to the company.


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PHASE-2

One wholesaler in each region was

appointed as a "Registered

Wholesaler.

The focus of the second phase, was to

provide desired products and quality

service to the company's customers.


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PHASE-3

Third phase was the concept of"Redistribution Stockist" (RS) who

replaced the Registered Whole sellers.

The second characteristic of this periodwas the establishment of the "Company

Depots" system.


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PRESENT PHASE

In the recent past, a significant change hasbeen the replacement of the CompanyDepot by a system of third party Carryingand Forwarding Agents (C&FAs).

The C&FAs act as buffer stockpoints toensure that stockouts did not take place.

The C&FA system has also resulted in

cost savings in terms of directtransportation and reduced time lag indelivery


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Distribution Final PPt

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