DISTRIBUTION

CHANNEL
BY SHIVAM PANDEY
B.COM. (H) III B
2019-22
GUIDED BY – NISHTHA SHARMA MA’AM
 DISTRIBUTION CHANNEL
• A DISTRIBUTION CHANNEL IS A CHAIN OF INTERMEDIARIES
THROUGH WHICH A GOOD OR SERVICE PASSES UNTILL IT
REACHES THE FINAL BUYER OR END COSTOMERS.
• THERE ARE 2 TYPES OF CHANNELS OF DISTRIBUTION:-
• DIRECT CHANNEL
• INDIRECT CHANNEL
DIRECT CHANNEL OF DISTRIBUTION
• DIRECT CHANNEL IS ORGANISED AND MANAGED BY THE
MANUFACTURER ITSRLF.
• SUN & SUN JWELLERS
• BATA
• EUREKA
• FORBES
INDIRECT CHANNEL OF DISTRIBUTION

• PRODUCER-RETAILER-CONSUMER (1LEVEL)
• PRODUCER-WHOLESALER-RETAILER-CONSUMER(2 LEVEL)
• PRODUCER-AGENT-WHOLESALER-RETAILER-CONSUMER(3
LEVEL)
 ONE LEVEL CHANNEL
• ONE LEVEL CHANNEL OF DISTRIBUTION CONSISTS OF PRODUCER, RETAILER AND CONSUMER
• THIS CHANNEL IS POPULAR WHEN RETAILERS ARE BIG AND BUY IN LARGE QUANTITIES E.G. DEPARTMENTAL
STORES, SUPERMARKETS
• GENERALLY USED FOR DISTRIBUTION OF CONSUMER DURABLES AND PRODUCTS OF HIGH VALUE LIKE
AUTOMOBILES AND HOME APPLIANCE
• ONE LEVEL CHANNEL COMPANIES ARE-
• DMART DEPARTMENTAL STORES
• BIGBAZAAR
• HERO AUTOMOBILES
• MARUTI
• SAMSUNG HOME APPLIANCES
• GODREJ
 TWO LEVEL CHANNEL
UNDER THIS CHANNEL, THE MANUFACTURER SELLS TO ONE OR
MORE RETAILRES WHO IN TURN SELL TO THE ULTIMATE
CONSUMERS.
• LUX
• PERACHUTE HAIR OIL
• POND’S CREAM
 THREE LEVEL CHANNEL
• THREE LEVEL CHANNEL OF DISTRIBUTION CONSISTS OF
PRODUCER,AGENT,WHOLESALER, RETAILER AND CONSUMER
• CLOTH MANUFACTURING COMPANIES WIDELY USES 3 LEVEL
CHANNEL
• FOREIGN MADE PRODUCT COMPANIES