DISTRIBUTION

CHANNEL
MANAGEMENT
Ram SINGH -20
Distribution A distribution channel is a chain of businesses or
intermediaries through which a good or service passes

Channel until it reaches the end consumer. It can include

wholesalers, retailers, distributors, and even the
internet.
Distribution medium

Intermediaries between the manufacturer and the consumer in an indirect

distribution channel might include:

● Wholesaler/distributor
● Dealer
● Retailer
● Consultant
● Manufacturer’s representative
Distribution Channel Considerations

Businesses with products should ask a number of questions before determining a distribution program. Those
questions include:

● How does the end-user like to purchase these types of products? Does the consumer want to touch and
examine the product or is it a product that the target audience likes to buy online?
● What, if any, are the local, regional, or national regulations regarding the product category distribution
channels?
● Does the customer need personalized service?
● Does the product itself need to be serviced?
● Does the product need to be installed?
● How is the product typically distributed and sold in your industry?
Distribution Network Of Bisleri

POWERED BY 125 PLANTS (13 OWNED), 3000 DISTRIBUTORS & 5000

DISTRIBUTION TRUCKS ACROSS INDIA.
Bisleri is a famous brand of bottled water in India
Bisleri, an Italian mineral water company, was
launched in India in the year 1965, and bought by
Parle from the Italian entrepreneur Signor Felice
in 1969. as the company was unable to market
bottled water, and planned to exit the market.

Bisleri has 60% market share in packaged

drinking water industry in India.

Bisleri stands true to its promise of providing safe,

pure & healthy mineral water to consumers for the
last 50 years.
Bisleri’s Vision: - Its vision is to be the dominant player in the branded water
business where the second player is less than 20% of its business.

Bisleri’s Mission: - To provide the highest quality product, keeping in mind all
aspect including freshness, purity, safety and making it easy available to the
consumer at very affordable price.
Product Mix

● Bisleri water
● Vedica
● Bisleri soda
● Urzaa
● Bisleri PoP
● Many Other product
Channel Design Consideration:
· Market needs and preferences.
· Cost of channel service.
· Incentives for channel members.
· The size of the end market to be served.
· Product characteristics - product, price, and packaging.
· Middlemen characteristics - whether they will push products or be passive.
· Market and channel concentration and organisation.
· Appropriate contractual agreements.
· Degree of control.
Channel Format
Sales Force Management
• The distributor employs their own salesmen.

• The company sales person makes a visit once every month.

Rest of the month every communication regarding stock
replenishment, etc. takes place over phone. The person of the
company whom the distributors communicate with is the Sales
Executive.
Channel Conflicts
● Horizontal Conflicts :-
Between two Channel Member/Wholesaler
● Vertical Conflicts:-
Between manufacturer and the wholesaler responsible for shipping
to retailers

Avoiding Channel Conflicts:

Conflicts can only be minimized, not avoided. The most effective approach for business owners is to approach
channel management with transparency and a willingness to find compromises that work for all the members of the
various channels to which it belongs.
Mode Of Transportation
● Bisleri has a very strong distribution network,
which makes it reach out to almost all the region in
the country, company has about 3,50,000 outlets
across the country.
● The Bisleri uses three level of distribution channel
as it consists of wholesalers, dealers and retail
shops.

● The company has used its own fleet of about 2000 trucks to manage the distribution network.
● Every day, nearly 5,000 delivery vans drive out of these 52 strategically located Bisleri bottling plants
carrying over 1 million units of pure, sweet drinking water to replenish the stocks of 3000 distributors and
nearly 600,000 retail outlets. Through distributors it also goes to the institutional buyers or orders over
internet.
Challenges Ahead

1. Method Adopted For Distribution:- THE ‘ROUTE SELLING’ policy adopted by BISLERI for
distribution is more expensive

2. Reuse Of Bottle By Local Sellers And Illegal manufacturers

3. Faults In Production

4. Pressure By Government Authority

5. Not Meeting The Demand Of The Customer