Placing (II) - Physical distribution,

importance, factors and elements

By
Abhishek Adak (12PGP002)
Ankit Gupta (12PGP008)
Hymavathi Pavitra (12PGP018)
Mathew Sujeet (12PGP028)
Tejit Mithal (12PGP046)

10/21/16

INDIAN INSTITUTE OF
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Distribution

10/21/16

Placing is one of the 4 Ps that

make up the marketing mix.
'Place' is concerned with
various methods of
transporting and storing
goods, and then making them
available for the customer.
Getting the right product to
the right place at the right
time involves the
distribution system.
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Different
types of
distribution
The choice of

distribution
method will
depend on a
variety of
circumstances.
Some
manufacturers
sell to wholesalers
who then sell to
retailers.
Others will prefer
to sell directly to
retailers or
customers.
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Elements of physical
distribution
i) Customer Service
ii)Transportation
iii)Inventory Control
iv)Protective packaging and materials
V)Order Processing
Vi)Ware housing

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Transporta
tion

Ware
housing

Customer
service

administra
tive

Inventory
control

42%

22%

6%

5%

25%

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Elements of Placing
Customer service
The sales personnel in the outlets help customers make
purchasing decisions. For example : In white goods outlets,
or during the purchase of an automobile, the sales men
provide valuable information, that helps the buyer make a
decision.

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Protective packaging
For items which have a low shelf life such as food
items fruit, milk, curd and products which need
to be handled with care (such as white goods) a
protective packaging is a must to ensure its
successful distribution till the customer.

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Order processing
The speed and efficiency of an order goes a long
way in
determining the brand equity, thus the market
share of the
particular product. McDonalds and Dominoes are
examples in
this category.

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Transportation
Class rate
Commodity rate
Classes of carriers
a)Common carriers: Moves freight via all modes of
transportation for the general public.
b)Contract carriers: Do not serve the general
public.
c)Private carriers: Do not offer services for hire but
provide transportation services for internally
generated freight.
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Major modes of transportation

Rail roads
Motor Carriers
Water carriers
Pipe lines
Air freight
Freight forwarders and supplemental
carriers
Intermodal coordination
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Inventory control
Matching quantity produced with
quantity demanded.
Holding cost
Ordering cost
Reorder point and reorder quantity
Safety stock value

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Ware housing
Receipt :Unloading , Inspection, Accounting
Storing : Carefully labelling , Identification
& a/cing
Handling
Display
Order Handling
Information Processing : Depository of
information across the organization
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Factors of Distribution

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Collaboration with Competitors

Helps leverage existing setup or
technologies which are time and
capital intensive.
Foreign players need the
distribution networks.
Indian players need the
technological advancements.
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Fiat India
Automobiles
Limited
50/50 joint venture between
Fiat and Tata Motors.
Fiat uses the distribution and
services network of Tata.
As quid pro quo, Tata uses
the engine technology by Fiat
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Fiat India
Automobiles
Limited cont
Joint venture ended by Fiat
growth focus announcement
May12.
Fiat wasnt able to grow and saw
spiral decline in sales recently.
Fiat will setup its own distribution
network from scratch now.
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HM Mitsubishi
Tie up
Effective since 1998, HM
markets Mitsubishi cars.
HM is able to sustain by
cashing on its established
production facilities and
distribution networks.
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Reach of Distribution Channels

Determines how easily the
product is available to the target
customers.
An existing channel can be
utilized to launch a new product or
An existing channel could be
made extensive to increase the
reach.
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Flipkart
Tied up with logistics partners to stock
products
Employed services of reputed couriers
to deliver the orders.
This has limited their distribution
reach as couriers might discontinue
delivering in a certain low frequency
area.
No international delivery due to
delivery and logistics constraints.
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Type of channel availability,

flexibility
The distribution network should be
flexible enough to handle further
modification in the product line.
The acceptance of distribution
channels by target customers also
plays an important role in
determining the selection distribution
channels.
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 For example internationally

customers of dell had preference for
selecting their laptops online.
However in India Dell laptops had to
adopt different strategy and they had
to start retail stores so that Indian
customers would feel more
comfortable buying the products.
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Dell store in Delhi

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Product types- shelf life, culture

The decision regarding distribution
system decisions should be based on
the type of product.
Also the acceptability of the product
in a market determines the decision
regarding its distribution region .

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Product types- shelf life,

culture
For example the main products of
Reliance fresh store being
vegetables, they have to be
transferred to the retail stores within
minimum time. So the physical
distribution channel should be fast
enough to transfer the produce from
farm to store.
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Product types- shelf life,

culture
Chandrika soaps had launched its
product in south India where the art
of ayurveda was respected and a
herbal soap was a latent demand.

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Information system
In todays e enabled era the
important requirement in distribution
is:
Fast and accurate transfer of
information .
Today the information flow should be
real time and paperless to achieve
the above two objectives.
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Information system
contd..
E.g. Tesco placed the images of shelves of
its stores along with bar code in the metro
station. Passengers can directly
photograph the product using mobile
phones and place the order to the retailer.
Tesco delivers the product based on the
order received from the customer. The
complete response time of Tesco Korea is
very first.

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Government involvement
Government decisions have
important role in a companys
decision making process.
Government decision on taxes,
labour regulations, transportation
have huge impact on the distribution
network.

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Target Customers and Buying

Habits
The distribution strategy depends highly on
whether product is aimed for mass distribution or
is targeted to select customers.
Mass product is freely available.

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 For mass product, the strategy changes based on

the product coverage. For example Parle biscuits
have a 40% share of the total biscuit market and
a 15% share of the total confectionary market in
India follows an intensive distribution strategy in
India. This is the ideal strategy for the market
leader as intensive distribution has the following
advantages:
Increases coverage and sales
Increases product availability
Encourages retailers to compete aggressively.
Higher competition leads to narrower margins
for the retails hence, increases the ultimate
margin for the manufacturer.
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Target Customers and Buying

Habits
Similarly ITC distributes its various products
based on the factors like infrastructures,
Delivery Van, Computer, warehouse, Sales
Force and population like 1 distributor per 20
25 thousand persons.
Targeted to particular customer
This category aims at distributing products
which are highly customized and are made as
per the customers requirements. This includes
customized apparels, cars, motor bikes etc
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 Vodafones special customized package which

allows customers to design their own tariff
package. This is distributed through its 121
service, provided that you are Vodafone customer.
So it is distributed through its customer care
service
Similarly customized apparels like that of Ritu
Beris collection, Manish Malhotras collection etc.
is an example of targeting particular customers.
Consumers for designer wear have a yearly
household income of Rs 10 lakhs-plus. There are 3
lakhs such households developing at 40-45 %.
These customers may directly approach these
designers outlets and can give their orders based
on their choice.
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Cooperation desired
Need to consider different levels of cooperation
required at different levels. There can be various
conflicts at different levels, thus cooperation required at
each level can be classified as:
Channel cooperation: Channel conflict exists when
channel members interfere with each others
objectives. So cooperation is required among different
channel members.
Horizontal cooperation: Horizontal conflict involves
firms on same level--grocery store vs. drug store. So
better understanding between different store vendors
is required for smooth functioning
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 Vertical cooperation: Vertical conflict

involves firms at different levels like
producer versus wholesaler
producer versus retailer
Channel Power: Channel Power is the ability
to influence or determine behavior of others
in channel.

So a clear distribution stating the roles

and a better cooperation determines the
distribution method.

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Importance of physical
distribution
Physical distribution mark an important part of
marketing task:
i) It confers space utility and time utility to a product by
making it available to the user at the right time and
at the right place. The value of a product perceived
by the customer depends on the costs he has to pay
for the product. So it is in the best interest of the
company to ensure that the product is available to
the customer at points that are convenient for him
and also at times that it is needed. Coca cola tried to
kill Thums up by trying to remove it from many retail
stores that used to stock Thums up.
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ii) It strengthen companys competitive

position:
It is of ultimate importance to the
company that the product is available
at all the places that its competitor is
available. This is specially true in
consumer products where the customer
is not so brand loyal.The more wide the
distribution is as compared to the
competitor, more the number of brand
loyal customers that can be expected.
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 It helps in carrying goods to the place of

consumption. It helps in storage in the process.
It helps in building good client relationship.
Like Maggi and amul milk has established its
reliability of supply by making things available at all
time.
Acts as a balance between production and
consumption of those Product for which seasonality
plays an important role.
Retail chain like reliance fresh has its own cold
storage facilities to ensure supply of seasonal
vegetables through out the year.
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Types of distribution
A) Intensive distribution
B) Selective distribution
C) Exclusive distribution

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Intensive distribution
In intensive distribution strategy the
company want their product to be
available over wide market and sells
through as many outlet as possible
so that you get the product wherever
you go. It may be low end products
like Nirma or cold drinks

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 Titan uses seven different

channels to sell its product
i)World of Titan
ii) Time Zone
iii)Value mart
iv) Sonata stores
v)Titan signet club
vi) Tanishq boutique
vii)Private multi brand outlet
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Selective distribution
LEE jeans available
only in the LEEs own
retail store and in
some big retail chains
like brand factory,
shoppers stop. In this
strategy the company
want their products to
be available only in
couple of high end
departmental stores.
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The idea is to
concentrate
on those
customers
who shop at
these
locations and
the product is
seen as
prestigious.
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Exclusive Distribution
An exclusive distribution strategy
calls for use of only a single and very
specific retailers who sell the product
to a particular market and also calls
for the retailer not to carry any
competing brands.
High priced products like cars are
made available only in company
showroom and not anywhere else.
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 For
example
Bently, rolls
royce cars
are
available
only in the
specific
showrooms.
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EXAMPLES
Airtel
There are two
types of sales
channels
1.Direct sales
channels
2.Indirect
sales
channels
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3.Airtel
Customer
Care Touch
Points
E.g. Paan
shops,
grocery
stores,
chemists,
outlet etc
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UCB
Benettons
distribution
strategy
revolves
around a
large network
of
independent
franchises
and resellers
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 UCB invests
capital in
their own
network of
stores. These
in turn buy
merchandise
from
Benetton and
sell directly
to the retail
customer.
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Apple
In India,
Apple is
going in
with both
Airtel and
Vodafone
as carriers.

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 Apple is
advertising the
position of a
National
Manager
based in
Bangalore for
its network of
Apple Premium
Resellers. It
currently has
49 APRs in
India.
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Bata
BATA has a threepronged strategy:
setting up 60 large
format stores
every year
(minimum area of
3,000 sq ft),
closing down the
unprofitable and
unviable ones and
focuses on
increasing its
institutional
business.
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Bata has its own

retail shop
throughout the
country specifically
in all major cities.
Approximately
1100 retail shop
are there.
a)Dealer network:
Through
independent
dealers
b)Authorized bata
dealership in semiurban and Rural
area.
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KFC
KFC believes in
first level channels
It works on the
flow of good
operation
techniques i.e.
Good Operating
Managerleads to
Good Team
SelectionGood
ServicesGood
TargetsGood
Revenues
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 It uses the
following
internal
strategies:
Training
Incentive based
targets,
Recognition for
good work,
Performance
based bonus
Employee
benefits to keep
them motivated
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SBI
SBI offers the
services through
various branches
(almost 16000
branches in India)
It has its physical
presence through
Internet/Web
Pages,
Broachers,Furnish
ing, Buildings etc.

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A proper place
selection for the
ease of
customers and
cater to the
market
The safety
and security
provisions

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 It has good
Infrastructure
facility to mark
its presence
through
hoardings etc.
presence
through ATMs
Near to
station and
located well
crowded area
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ICICI
Creation of
concept of
Direct Selling
Agent
Direct Selling
Team
Use of mobiles,
ATMs, internet
and other
technological
devices
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ICICI Bank in
Different target
rural
market
segment
in rural market
i) Rich
ii)Small and medium
enterprises
iii)Middle class group
iv)Low income group
ICICI uses
combination of hybrid
channels like
branches, franchise,
kiosk and micro
finance
institutions.
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Sales

6%

5% 7%
35%

47%

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Branch
ATM
Call Centres
Internet
COPS

65

Nokia

HCLI
Distribution of Nokia
phones has been
handled by HCLI for
about 10 years. Nokia
business accounts for
52% EBIT of HCLI.
Re-Distribution
stockiest supplier
(RDSS)
There are 6 RDSS in
Delhi NCR region with
territories divided as
North, South, East and
West Delhi, Noida and
Gurgaon. RDSS
operate only in their
designated territorial
zone.

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 Nokia Priority
dealers, Multi
brand and
individual
dealers in Delhi
NCR are all
served by
RDSS.
Re-supplies are
always just a
phone call away
and the
delivery is
made within a
few hours.
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Components Of Distribution Channel

Share & gain
Penetrate
market
Assist
Receivable
insight
market
Explore
in new
deeper
collection
new
product
markets

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Sale

68

Flow Diagram of Distribution for

Nokia
Nokia Chennai factory

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TTK Prestige

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TTK Prestige
reflects a case of
how the
company
achieved some
success in
retrieving
market share in
the South by
tying up with
women's selfhelp groups and
NGOs in Andhra
Pradesh to
market its
pressure cookers
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India
Limited
Sales force
Reach across
India
Supply chain
network
Sales
management
practices
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different channels
(traditional, modern retail
and government sales)

Reach across India

Dealerships in all urban

centers with population
greater than20,000.
Penetration in important
modern retail outlets
(Future Group, Metro,
Reliance)

Supply chain
network

33 warehouses leased and

managed in-house.
SAP enabled across all UIL
locations (head office,
location offices, and
warehouses)
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Distribution tree for Usha India

Limited
DISTRIBUTOR

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Parle
The Parle
distribution
network for biscuits
has essentially four
levels as enlisted
below:
Parle Depots
Wholesalers and
Distributers
Carry Forward
Agents (if required)
Retailers
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Barista
Barista do not give
franchise of its
outlets. Every outlet
of Barista is owned by
company itself.
Barista currently has
120 outlets all over
the country.
Barista has adopted
a top down approach
for selecting the
location.
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The selection of the

cities was based on
the following criteria.
Sizeable population
of executives,
students and families
in SEC A & Barista
category.
High disposable
income with people
looking for new vistas
in leisure and lifestyle
oriented concepts.
High level or
organized retail
activity.
Rapid socioeconomic
development.
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Dell
Dell
revolutionalized
personal
computer
category by
selling products
via the telephone
and later through
internet. Rigorous
cost cutting
possible for low
everyday price.
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the company set up

exclusive outlets
across the country, the first time it has
experimented with the
retail model -- and
hired a battery of sales
affiliates.
Dell opened 38
exclusive stores across
India, and joined hands
with retailers such as
the Tata group's Croma
and Future Group's
eZone for a shop-in-ashop counter for its
products. These
outlets are franchised
to the sales affiliates,
who are also
responsible for
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Tupperware
Tupper ware representatives sale its
kitchen goods through home parties.
Tupperware uses direct selling
channel under which products are
sold to consumers outside traditional
retail store locations. The system
helps in the timely distribution of
products to consumers, without
having to work through
intermediaries.
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Tupperware
Tupperware depends primarily on the
party method of sales, which is designed
to enable the purchaser to appreciate
through demonstration the features and
benefits of Tupperware products.
Tupperware parties are held in homes,
offices, social clubs and other locations.
Tupperware products are also promoted
through brochures mailed to persons
invited to attend Tupperware parties.
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Tupperware
In 2008, Tupperware continued to operate around
the world its integrated direct access strategies to
enhance its core party plan business and to allow
consumers to obtain Tupperware products other
than by attending a Tupperware party. These
strategies include Internet selling (which includes
the option of personal websites for the United States
sales force), and television shopping. In addition,
Tupperware also has entered into business-tobusiness transactions, in which it sells products to a
partner company for sale to consumers through the
partners distribution channel.
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Mc donald
Retail based channel format
Owned and operated by independent Franchiser.
Tier 1 cities:
1)Metro and railway station
2)High density market places
3) Shopping malls
Road side:
National highways
Company owned outlets
Franchisee models
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Domino
s
Retail based
channel
a) Super storeb) Express storeNot for home
delivery
Domestic
channel-In
domestic based
stores

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The company use

it as testing
ground for new
product which is
later then
passed on to
franchisee.
Close to 207
franchisee in
India.

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Traditional vs
Fed
Ex
Shipping with
international
traditional
distribution
can be a
distribution
complex and
prolonged process
that costs you time
and money.

Traditional process:
i)From origin
manufacturing facility
bulk package is
palletized.
ii) Then freight is
transported to origin
container yard.
iii)Goods are
transported
internationally and
processed
through
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iv) freight is
transported to
distribution centre
v)orders are
picked for
shipment.
vi)Individual
shipment are
tendered to
delivery carrier.

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Fed ex
international
delivery
i) From origin
manufacturing facility
multiple packages of
freight are consolidated
into one shipment
ii) goods are
transported
internationally via air,
water etc as single
shipment.
iii) After
deconsolidation
individual freight are
delivered to multiple
customers.

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T.I.M.E.
Time provide education
for competitive examination through
its numerous franchisee
all over India.

Triumphant Institute of
Management
Education Pvt. Ltd. (T.I.M.E.) is
India's leading test-preparation
institute with a pan-India presence .
Its head quarter is located in
Hyderabad. T.I.M.E. operates out of
204 offices located in
104 towns and cities across the India

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Amway
Amway focuses
on direct selling
with a multi-level
marketing
strategy.
"Independent
Business Owners"
(IBOs) may
market products
directly to
potential
customers.
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are reached
to the
customers'
doorsteps
within 24 to
48 hours of
the order
being placed
expansion of
the
distribution
network to
smaller
towns.
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Netflix
Netflix (the
no-late-fees
online video
rental
company
that will
ship your
chosen
video
rentals
right to
your door)

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The target audience for

Netflix expands beyond the
regions and primary market
areas that typically define
traditional brick-andmortar businesses.
The Netflix target
audience is not limited by
geography, but rather
bound by technology.
Despite differing
distribution strategies both
Netflix and Blockbuster are
focussing on the up-andcoming distribution
channel; digital delivery.
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Ghari
detergent
Ghari also realized that
it can not beat Giants
like HUL and P&G due
to their financial
muscle. So it selected
Uttar Pradesh, with a
population of 167
million (highest in
India) and accounts for
over 12% of the
countrys FMCG sales.
Ghari also
implemented
extensive dealer
network throughout
the state.
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Thus, of the 3,000

Ghari dealers in the
country, 900 are in
Uttar Pradesh 25
of them in Kanpur
alone.
Furthermore, nine of
the companys 18
manufacturing units
are
in Uttar Pradesh.
Higher
profit margin of 9% the
company offers its
dealers; rivals seldom
offer better than 6% or
7%.
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Hero Honda
Motors
Its 360 dealers
all over the
country have
reported the
emergence of an
unofficial channel
of distribution -village
mechanics,
local real
estate agents,
shopkeepers
who sell nondurables and so
on.
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 These people are

taking motorcycles
from the official
dealers -- usually in
twos and threes -displaying them
outside their
premises and closing
a sale. The
paperwork, though,
is left to the dealer
to complete. Such
instances are forcing
companies to review
their distribution setups to ensure that
they are present
even in the smallest
villages.
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Tata AIG

TATA AIG
encouraged
the women to
form
partnerships
in groups of
five and called
them CRIGs
(Rural
Community
Insurance
Groups).
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The people travel

around in branded
vans owned by Tata
AIG, which also
double as collection
and policy servicing
units.
Over four three-day
capacity building
modules, women
learn soft skills,
develop insurance
skills and learn data
management
through computers.

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CEAT
TYRES
Ceat Tyres Limited,
part of the Rs 6,400crore RPG Group, has
relaunched Ceat
Shoppe, its decadeold exclusive retail
chain for passenger
car tyres in the
Indian market.
92 Ceat Shoppe will
be revamped by the
end of this year in a
phased manner.
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 The company also

plans to increase
the number of its
exclusive retail
outlets to 130.
The prelaunch
exercise has been
preceded by a
market study and
consumer research
into aspects of shop
interiors including
retailing ambience
and shopping
comfort, say
company sources.
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Park
Avenue
Complete
Wardrobe
Dressing Solutions
for Men.
Introduced in
1986 by
Raymond.
Named after an
elite Manhattan
street.
Launched
women's range in
2007.
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 Available
through:
580 'The
Raymond Shops'
35 Exclusive
Brand Stores
6 Exclusive
Woman brand
stores
400 + MultiBrand Outlets.
Presence in
Large Format
Stores like
Shoppers Stop,
Lifestyle and
Central
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Polo
Positioned as a
mint based
sugar
confectionery
mouth
freshener.
Mint with the
Hole.
Market Leader
in Adult
Confectionery
market.
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 Mostly bought off

the counter
without a previous
intention to buy.
Hence visibility a
major factor in the
buying decision.
Available in
prices of Rs. 5, 2,
1
Available at all
smoking spots,
small and big
retail stores,
supermarkets.
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Harley
Davidson Bikes

Exclusive dealership
network.
Rigorous requirements
by Harley Davidson to
become a dealer;
accepted five out of
hundred initial
applications.
Dealerships awarded in
select cities only nine
so far
Ahmedabad,
Bangalore,
Chandigarh,
Chennai,
Hyderabad,
Mumbai, New Delhi,
Kochi, Kolkata

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Harley Davidson
Bikes Customized
Large consumer base for customized
Harley Davidson bikes.
Dealers are trained and equipped to
customize new bikes per client
preferences.
Company encourages customization,
appealing to individualistic self
indulgent customers; reinforces trust in
dealer network. INDIAN INSTITUTE OF

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Ferns N Petals
Only national-level organized retailer
that sells and home delivers flowers.
Diversifying with Gifts and luxury
floral boutiques with Fashion
Designers.
Further nine verticals: events, ecommerce, gardens, weddings, retail,
franchising, rentals, handicrafts and
luxury stores. INDIAN INSTITUTE OF
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Ferns N Petals
Distribution
Online orders completed by multiple
forms of delivery:
Express
Super fast
Midnight
International

Shops in tier II and tier III markets like

Raipur, Coimbatore, Tirupati, and
Nellore
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ITC
Distribution
Objective to reach the masses.
Highest rural penetration.
Leverages existing distribution
networks to launch new products
like biscuits.
Immense demand for variety
and no waiting time is expected.

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ITC
Distribution
ITC chooses its distributors based on variety of factors
like:
Infrastructure
Delivery Van
Computer educated
Warehouse
Sales force
Population Density

Mandates preconditions such as dealers must deal in

other products if deals in cigarettes
Order frequency varies from Daily by Paanwalas, to
Weekly by Distributors. INDIAN INSTITUTE OF

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ITC Distribution
Network Elements
Manufacturing units
Storage Hubs
Distributors
Exclusive based on population and demand
Stocks all FMCG products

Wholesalers
Retailers
Paanwalas
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ITC Distribution Network

Manufacturi
ng Unit Biscuits

Wholesalers

Manufacturi
ng Unit
Food
Products

Retailers

Manufacturi
ng Unit Atta

Small
Retailers

Hub

Exclusive
Distribut
or
Malls

Manufacturi
ng Unit Cigarettes

10/21/16

Paanwallas

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channel of
Maggi :
Distributor
selection
Credit
worthiness
Distribution
reach
Setup provided
by him
Able to invest in
IT
Area distribution
should be big
Financial
strength
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Sub
Distributor
Known as redistributors in Nestle
Used to access
places which are not
easily accessible by
distributors
Get invoiced by the
distributors
Nestle incentivizes
distributors who hire
more re-distributors
The distributors are
also reimbursed by
nestle for the
commissions they
pay to their sub
distributors
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Distribution Channel Structure

Factory
Clearing & Sales Agent

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Transporta
tion
Payments

Nestle pays for

transportation cost the
factory to distributors
and from the distributors
to other distributors and
Key Accounts.

Till cash distributors it is

freight paid and from
cash distributors to the
dealers and other agents
its a mix between freight
paid or freight to be paid.

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Transporta
tion

Trucks within
enclosed containers

Railways for long

distances and big
markets

Losses while
transporting are
debited to the
transporter and
incase of bottles or
first stage failures,
the loss is not
debited to the
transporter

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Warehousi
ng

Warehousing :
done at different
levels

Team of experts to
check on hygiene.

Inventory Norms

Replenishment
time, lead time
and distance :
deciding factors

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Delivery and
Process Time

Invoicing
schedule is
fixed for the
month
Extreme
demand for
products

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Depot
Selection
Logistics
easily
accessible by
trucks
Tax structure
closed due to
VAT
Coverage
cover a wider
area for
servicing in time
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Tracking
Distributor
Performance
Depends on
the target
Track the
inventory of
the distributor
Invoicing calls
within a week

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Franchisee
selection
Location
credit
worthiness
hygienic
environment
Replenish Stocks
post quality
check
everything is
managed by
the franchisee
and nestle only
supplies them
with the mixes.
Licensing
Obtained by the
franchisee

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Shelf
Placement
Star
outletsmodel
shops
Maggi racks
Air space
Dhobi line
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Bingo
Bingos success :
ITCs strong
distribution
network
ITC Foods provides
shopkeepers with
plastic shelves.
Competitor Frito
Lay India :
unconventional
retail points like
cyber cafes and
telephone booths.
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 In any
supermarket or
Kirana store,
Bingo is highly
visible.
In India there is
no company that
can match the
distribution
strength of ITC
and this has
helped this new
launch in terms
of Shelf Space
and retailer
support.
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Amul

10/21/16

500,000 retail outlets ; 3,500

distributors.
47 depots with dry and cold
warehouses
GCMMF's philosophy of
maintaining cash transactions
throughout the supply chain
also minimizes dumping.
Wholesale dealers inventory
that is just adequate
GCMMF branches engage in
route scheduling and have
dedicated vehicle operations.
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 One of the main

factors, which keep
the distributors
motivated, is the
margin.
The concept of
Trade Marketing .

Total Quality
Management
initiatives &
workshops.
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 Amul yatras :
this includes
taking the
channel
members on a
guided tour of
the
manufacturing
and procuring
facilities in
Gujarat.
Glow boards
Schedule of the
salesmen
Infrastructure
facilitation
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 Beat plan
Cumulative
performanc
e
Target
versus
achieveme
nt

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P&G Tide
Availability in
wholesale and
retail stores.
Kirana stores,
big retail outlets,
convenience
stores and the
sachets and bars
Even available
at paan shops
for rural people.
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Hyundai
Major thrust to increase
penetration into rural
areas and expand its
customer care services.
Tie up with Indian Oil
Corporation (IOC)
320 workshops in the
country.

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Dabbawallah

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 The 5000 Dabbawalas are divided into 3 sets of

activities.
Between 9-9:30 am : collection
Then, sorting of the Tiffin boxes.
Then loading of the Tiffin boxes.
The job of dabbawalas begins at around 8:00 8:30 am.
meets the other group members at the designated spot
at the station.
sorting of all the Tiffin as per the destination station and
to arrange them in the wooden crates in a short period
of 20-25minutes.
each of the lids of the Tiffin is marked with a colored
code indicating the originating station, destination

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FlipKart
Channel
type: Word of
mouth
Inventory or
procurement
from other
supplier
80% orders
of Flipkart
warehouses
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They deliver orders in 1

day in Tier-I cities and
2-3 days in Tier II cities
and 3-5 days Tier III
cities
Shipping and Courier
would act as
intermediaries in this
process.
Warehouses are located
in the following cities,
often near airports.
Bangalore
Chennai
Delhi
Hyderabad
Mumbai
Noida
Pune
Kolkata

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LIC
LIC functions with 2048 fully
computerized branch offices, 109
divisional offices, 8 zonal offices, 992
satellite offices and the corporate office.
LICs Wide Area Network covers 109
divisional offices and connects all the
branches through a Metro Area Network.
LIC has tied up with some Banks and
Service providers to offer on-line
premium collection facility in selected
cities.
Bancassurance, brokers and corporate
agents to sell insurance products.
NetAmbit : 140 locations across the
country

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There are also 510

corporate agents
and 125 insurance
brokers.
Distribution
through banks and
corporate agents.
LIC has a wider
reach through rural
and co-operative
banks
LIC has larger
volumes of
business through
foreign and other
private banks.

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Tata sky
Tata Sky has an
extensive
customer service
network.
3000 service
Installers who are
complemented
by high-end 24x7
call centres ;
multi-lingual
customer service
associates.
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 Direct
responsibility
for installing
and servicing
the hardware at
every
subscriber's
home.
Hardware and
prepaid
recharge
vouchers.
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Tata sky TVC that demonstrates the

companys excellent customer service policy

Tata sky
distribution

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Gold Flake
Market coverage:
ITC covers a wide
range of the retail
spectrum
Order processing:
As per the demand
and supply of the
product in the
market.
Demand for
branded product in
rural areas is on
the rise
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 Transportation:
Long distance
transportation :
Trucks.
Small distance
transportation :
Small tempos

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