Channel Cost

In FMCG market, channel consist of stakeholders involved in the process of getting the products
from manufacturers to the end consumer. Various channel members involved in the process are:

CnF
Logistic partner
Distributor
Wholesaler
Sub Distributor
Super Stockist
Retailer

Any FMCG company would need these members to achieve the aim of getting sales. IN return,
these channel members receive a certain amount of margin as well incentive and schemes to be
motivated to sell more of their products than that of their rivals. All these things contribute to
the channel cost to the company. The C&FA is a third party and gets servicing fee for stock
and delivery of the products.

In case of McVities below is the margin allocated to the channel members along with the other
approximate costs: