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Group-2
NAME ROLL NO.
Pratik 9
Kiran 10
Priyanka 11
Mayoor 12
Rachit 13
Naresh 14
Yogesh 15
Neha 16
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Distribution Objectives
Minimize total distribution costs for a givenservice output
Determine the target segments and thebest channels for each segment
Objectives may vary with productcharacteristics e.g. perishables, bulky products, non-standard
items, products requiring installation &maintenance
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Distribution Functions
Functions
Value
added
service
Financing
Transfer
of owner-
ship
Makingproduct
available
Negotiation
Risk
Taking
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Levels of Distribution
Intensive Distribution-Distribute from as many outlets as possible to
provide location convenience.
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Selective Distribution-
Requires finding out suitable resellers to stock &sell the product.
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Exclusive Distribution-Requires limited number of resellers in marketto maintain high level of service quality.
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Types of
distribution
channel
Indirect
distribution
channel
Hybrid
distribution
channel
Direct
distribution
channel
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Direct Distribution Channel
DIRECT MARKETING
SYSTEMS
FOR EXAMPLE- WEBSITE
DIRECT RETAIL SYSTEMS
FOR EXAMPLEHINDUSTAN
PETROLEUM
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Personal Selling System
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Indirect Distribution Channel
Indirect distribution channel involves middleman forthe distribution of products to the customers.
The Indirect distribution channel can be divided intwo parts:
Single Party Selling System
Multiple Party Selling System
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Basic Channels of Distribution
Manufacturers/products
Agents/brokers
Wholesalers/distributors
RetailersRetailers
Consumers and organizational end users
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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.
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Hybrid Distribution Channel
Combination of more than one distribution channel to reach
customers is called as Hybrid Distribution channel.
Producer
Consumer
segment 1
Consumer
segment2
Business
segment 1
Business
segment2
Retailers
Distributors
Dealers
Telemarketing Internet Own sell
force
Distributor and
Dealer
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Hindustan Unilever LimitedIndia's largest Fast Moving Consumer Goods
company, touching the lives of two out of threeIndians with over 20 distinct categories in Home
& Personal Care Products and Foods &
Beverages.
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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 wasremitted to the company.
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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.
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PHASE-3
Third phase was the concept of"Redistribution Stockist" (RS) who
replaced the Registered Whole sellers.
The second characteristic of this periodwas the establishment of the "Company
Depots" system.
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PRESENT PHASE
In the recent past, a significant change hasbeen the replacement of the CompanyDepot by a system of third party Carryingand Forwarding Agents (C&FAs).
The C&FAs act as buffer stockpoints toensure that stockouts did not take place.
The C&FA system has also resulted in
cost savings in terms of directtransportation and reduced time lag indelivery
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