HYBRID

DISTRIBUTION
Introduction

Hybrid Distribution Channels are created by companies to channelize

their products and services in multiple ways so as to touch as many
customer contact points as possible, in order to create a value for the
channel partner as well as the company.
They are also known as Multi-channel Distribution
Distribution can be direct (Directly to customer) and indirect (Through
intermediaries) , when companies use more than one way to
distribute their products or services then its known as hybrid
distribution.
Types of channels
Producer
Catalogs,
Internet,
Telephone Wholesalers

Retailers Retailers

Consumer Consumer Consumer

segment 1 Segment 2 segment 3
WHY COMPANIES ARE ADOPTING
HYBRID DISTRIBUTION
CHANNEL?
Increases customer reach
Cost efficiency
Lower risk
pertaining to different segments
Cater to different products
Fight competition effectively
Strategic framework for hybrid
distribution
Needs of channel partners

Delivery
Profit Margin
Packaging
Training
Promotional help
Uniform pricing
Other incentives (Bonus and discounts)
Airtels Hybrid distribution model

Bharti Airtel a leading telecom provider has more than 110 million subscribers and offer
various products and services like mobile connections , home phones , broadband and
internet , DTH and many other services .

Airtel uses Multi channel distribution and has following channels

1. Company-owned outlets-Direct link between Airtel and consumers
2. Franchisee Selling Associates-Places where company outlets cant reach
3. Retail outlets
4. Corporate Selling Associates
5. AIRTEL Relationship Centre-Call centres
6. Companys website
Challenges in hybrid distribution
model
1. Organizational challenges
2. Logistical challenges
3. Data integration challenges
Organizational challenges

1. Decentralized structure:
Various departments for various channels such as-
i. Inventory management
ii. Marketing
iii. Merchandising
iv. Finance
v. Analytics
vi. Product Development
2. Increased cost
3. Internal conflict across channels
Logistical challenges

1. Inventory management:
Planning & forecasting demand becomes difficult
2. Order returns:
Return of Non-Store purchase orders to physical Stores
 Data integration challenges
1. Integrated Data Warehouse permits:
i. To measure customer value
ii. To target appropriate marketing resources
iii. To form view of customer purchase behaviour
2. Data across channels needs to be integrated:
Two critical aspect in this:
iv. Establishing I.T infrastructure .
v. Delivering relevant data to respective channels
3. Traditional collection of data approach lead
to Data Silos:
Less focus on customer loyalty and satisfaction
Multi Channel distribution in
Apparel Industry
Channels forecast to provide the greatest
increase in sales over next two years
Sales
4% 2%
4%
online/ website
9%
Brick and Mortar store

Distributors
11%
52% Social Media

Call center

Catalog

Others

18%
Distribution Model of HUL
PHase1A

Factorie C&F Distribut

s agent ors

PHase1B
Village1

Village Village2
5

Village4
Village3
Project Shakti

C & F Agents Redistribution

Stockist

Shakti entrepreneur Shakti Distributor

THANK YOU