Professional Documents
Culture Documents
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.
Agents/brokers
Wholesalers/distributors
Retailers
Retailers
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