Professional Documents
Culture Documents
Distribution
Distribution
DISTRIBUTION
DISTRIBUTION
DISTRIBUTION
DISTRIBUTION
DISTRIBUTION 6
DISTRIBUTION
DISTRIBUTION
Merchandising Attractive display Increases - Awareness - Interest Wide display of music Can try Attractive display Dcor Invested in space, display Sales personnel, warehouse, trucks
DISTRIBUTION 10
Music world
7. Provides pre-sale and after-sale service. - TV servicing in rural areas - Company or channel - Done by channel partner
DISTRIBUTION 11
7. Extend credit to select customers - Buy now, pay later. 8. Helps in test marketing - Testing products before launch - Use channel premises
DISTRIBUTION
12
DISTRIBUTION
13
DISTRIBUTION / PLACE ISSUES Analysing customers Desired Service output levels - What kind of service levels are expected by target customers - Five Service Output levels
1.
2. 3. 4. 5.
Lot Size Waiting time Spatial convenience Product variety Service backup
DISTRIBUTION 17
DISTRIBUTION
19
DISTRIBUTION
23
Company salesforce Sales personnel from company directly Products are complicated / not understood
Boeing Aircrafts Complex Can take one yr to finalize the sale Own sales force Trained
DISTRIBUTION
24
DISTRIBUTION
25
DISTRIBUTION CHANNELS
CEAT Tyres 1. Company Salesman Supply to large Automobile Manufacturers - Maruti, Ford, Hyundai 2. Dealers Multibrand Shops all over India 3. Ceat exclusive showrooms Exclusive shops dealing with Ceat tyres only
DISTRIBUTION
26
DISTRIBUTION CHANNELS
B. Number of Intermediaries Three types of strategies 1. Exclusive distribution 2. Selective distribution 3. Intensive distribution
DISTRIBUTION
27
DISTRIBUTION CHANNELS
1. Exclusive distribution Limiting the use of intermediaries Not allowing competing brands Maintain control Total commitment of intermediary Maruti Exclusive dealers Huge investments by dealers Maruti provides support
DISTRIBUTION 28
DISTRIBUTION CHANNELS
2. Selective Distribution Use of more intermediaries Compared to exclusive Need more visibility More control Less cost Shahnaz Hussain Herbal products Not available from every Grocery shop Available at select outlets Maintain Image
DISTRIBUTION 29
DISTRIBUTION CHANNELS
3. Intensive Distribution As many outlets as possible Multiple channels Consumers widespread Reach critical Problems of control Example Lux Soaps, Lifebuoy, Colgate
DISTRIBUTION 30
DISTRIBUTION CHANNELS
C. Terms and responsibilities of channel Members Profitable relationship - Producer - Channel partner Rules of the game Channel partner responsibilities - Prices - Discounts - Terms & conditions of sale Credit policies Defective return policies Merchandise Dos and Donts
DISTRIBUTION 31
DISTRIBUTION CHANNELS
Territorial Limit - Scope of each others activities Both work united Conflicts happen when their roles are not clear
-
DISTRIBUTION
32
Channel-Design Decisions
Criteria for Channel Alternative Evaluation
Economic Control
Adaptive
DISTRIBUTION 33
Motivation
Evaluation
Channel
Modification
DISTRIBUTION
Channel
34