DISTRIBUTION RESEARCH

PRESENTED BY:-

MAHESH KUMAR SHARMA

Distribution Research

Distribution decisions based on the number and location of salespersons, retail outlets, warehouses, and the size of discount to be offered(determined by what is being offered by existing or similar products).

Warehouses and Retail Location Research

What costs and delivery times would result if we choose one location over another?Ans. Simulation of scenarios.

can be a simple, paper-pencil exercise for a limited geographic area.

can be a complex, computerized simulation for a regional or national market.

Center-of-Gravity Simulation It is used to locate a single warehouse or

retail site. Minimize the distance to customers.

Computerized Simulation Models

Designed to determining how many warehouses should be used and where they should be located.

Required to work on multiple warehouse location problems.

Trade Area Analysis

It helps in creating mailing lists, evaluating a store’s or shopping center’s market positioning, measuring competitive customer bases, determining the potential of new location.

Also helps to evaluating regional retail chains and acquisition plans.

Outlet Location Research

It deals with individual companies, chains, financial institutions with multiple outlets etc. Two general methods:-1) Analogous location method:- involves

plotting the area surroundings the potential site.

2) Multiple regression models:- can be used to generate a relationship between store sales and a range of store, population and competitor characteristics.

Number and Location of Sales Representatives

How many sales representatives should there be in a given territory?

Three general research methods 1) Sales Effort Approach:- Applicable

when the product line is first introduced. 2) statistical analysis of sales data:-can

be used after the sales program is under way.

3) Field Experiments:- also applicable only after the sales program has begun.

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