DISTRIBUTION MANAGEMENT

Place Utility

Time Utility

Possession Utility

DEFINITION
The management of all the activities which facilitates

movement & co-ordination of supply and demand in the creation of time & place utility in goods. The art and science of determining requirements, acquiring them, distributing them and finally maintaining them in an operationally ready condition for their entire lives. Broad range of activities concerned with the efficient movement of finished products from the end of the production line to the consumer.

The Distribution Functions

SALES SPECIALIST FOR PRODUCERS Provides market information Interprets consumers wants Promotes producers products Creates assortments Stores products Negotiates with customers Provides financing Owns products Shares risks

I N T E R M E D I A R Y

PURCHASING AGENT FOR BUYERS Anticipates wants Subdivides large quantities of a product Stores products Transports products Creates assortments Provides financing Makes products readily available Guarantees products Shares risks

ROLE OF DISTRIBUTION CHANNELS

Spatial Temporal Break Bulk Assortment

Financial support

TYPES OF MARKETING CHANNELS

Distribution Channel Of Parle G

COMPANY PROFILE
Parle products has been Indias largest manufacturer of

biscuits and confectionaries, for almost 80 years. Since 1971 Parle has 40% share of total biscuit market and 15% share of total confectionary market in India, Parle has grown to become a multi million dollar company. In 1929 a small company by the name of Parle products emerged in British dominated India.

Cont.
A Small factory was set up in suburbs of Mumbai, to

manufacture sweets and toffees . Except Mumbai and Bangalore, Parle also has large plants in Bahadurgarh , Haryana & Neemrana, Rajasthan. The Parle has 89 Plants in India which manufacture Parle G. 9 of these are mother plants & rest 80 are subsidiaries.

PRODUCT RANGE
Biscuits Parle G Milk Shakti Parle - Magix Krackjack Monaco Digestive Marie Hide & Seek Confectionary Melody Mango bite Poppins Kismi Toffee Orange Candy Must Bites

Intro to Parle-G
Parle G has been a strong household name across

India. A cream colored yellow stripped wrapper with a cute baby photo containing 10 12 biscuits with the companys name printed in Red and you know these are Parle G biscuits. The great taste, high nutrition, and the international quality, makes Parle- G a winner. Times changed, variety of biscuits did come and go but nothing has changed with these biscuits. It has been the undisputed leader in the biscuit category for decades.

Distribution Channel
The Parle-G distribution network has three levels as

enlisted below; 1. Factory 2. Parle Depot 3. Distributor 4. Retailer

Distribution Channel
Factory

Parle Depot

Distributor

Retail Chain

Factory
79 Factories all over India manufacturing Parle G

9 out of them are owned by the Co. and the rest are

subsidiaries. Production & Dispatch of Parle G is 200 MT/ unit per day. Daily production capacity is 80 MT per shift. 12 min. for manufacturing a single packet of Parle G from mixing to packaging. Team of 750 dedicated people in a single unit manufacturing Indias Fav. Glucose Biscuit.

Contd.
Material then is dispatched to various Distribution

Hubs, which then is sold to other people down the distribution channel. Team of 750 dedicated people in a single unit manufacturing Indias Fav. Glucose Biscuit.

Parle Depot
There are 4 depots in Mumbai viz:

PanvelVasai-Borivali-Bhiwandi. Purchase order is placed in factory according to the necessity. On daily basis, 10-12 trucks are loaded & unloaded. There are 30-35 distributors under each depot in their network.

Distributor
A distributor covers retailers in the radius of 15 - 18

km. There are 450 500 retailers under each distributor. Each distributors purchase order on monthly basis is 25 30 lacs. The profit margin is approx 4%. Mode of transport is trucks.

Retailers
A retailer orders on weekly basis according to

consumption. His profit margin is 6-8%. Parle-G is available in different quantity costing Rs2, Rs 4, Rs5, Rs10, Rs20, Rs40 and Rs50. The mode of communication between retailer and distributor is telephonic. The mode of transport is mini-autos and tempos.

PLACES WHERE PARLE PRODUCTS ARE AVAILABLE

Kirana /General stores

Tea shops
Railway station Places where the cultural programmes of villages are

being organized.