INSTITUTE OF MANAGEMENT

GNVS

Project:

Distribution
Presented to:
Prof.Abha Wankhede

Group-2
NAME Pratik Kiran Priyanka Mayoor Rachit Naresh Yogesh Neha ROLL NO. 9 10 11 12 13 14 15 16

What is Distribution?
Marketing

channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption Philip Kotler

Distribution Objectives
Minimize total distribution costs for a given service output Determine the target segments and the best channels for each segment Objectives may vary with product characteristics

e.g. perishables, bulky products, non-standard items, products requiring installation & maintenance

Distribution Functions
Making product available
Value added service

Transfer of ownership

Functions
Negotiation Financing

Risk Taking

Levels of Distribution Intensive DistributionDistribute from as many outlets as possible to provide location convenience.

 Selective DistributionRequires finding out suitable resellers to stock & sell the product.

 Exclusive

Distribution-

Requires limited number of resellers in market to maintain high level of service quality.

Direct distribution channel

Types of distribution channel

Hybrid distribution channel

Indirect distribution channel

Direct Distribution Channel

DIRECT MARKETING SYSTEMS FOR EXAMPLE- WEBSITE DIRECT RETAIL SYSTEMS FOR EXAMPLE HINDUSTAN PETROLEUM

Personal Selling System

Indirect Distribution Channel

Indirect distribution channel involves middleman for the distribution of products to the customers.
The Indirect distribution channel can be divided in two parts:

Single Party Selling System

Multiple Party Selling System

Basic Channels of Distribution

Manufacturers/products

Agents/brokers

Wholesalers/distributors

Retailers

Retailers

Consumers and organizational end users

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.

Hybrid Distribution Channel

Combination of more than one distribution channel to reach customers is called as Hybrid Distribution channel.
Producer

Distributors Retailers Dealers

Consumer segment 1 Telemarketing

Consumer segment2 Internet

Business segment 1 Distributor and Dealer

Business segment2 Own sell force

Hindustan Unilever Limited

India's largest Fast Moving Consumer Goods company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages.

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 was remitted to the company.

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.

PHASE-3
Third phase was the concept of "Redistribution Stockist" (RS) who replaced the Registered Whole sellers. The second characteristic of this period was the establishment of the "Company Depots" system.

PRESENT PHASE
In the recent past, a significant change has been the replacement of the Company Depot by a system of third party Carrying and Forwarding Agents (C&FAs). The C&FAs act as buffer stockpoints to ensure that stockouts did not take place. The C&FA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery