DISTRIBUTION CHANNEL

TEAM MEMBERS- Abhishek ChakrabortyAnushree JainAnkush DawnArijit Talukder

Pragati JhaProjjal Kr Das

Coca Cola India's Thirst for the Rural Market

"We want to be the Hindustan Lever of the Indian beverage business."

- Sanjeev Gupta, Deputy President, Coca-Cola India in May 2002.

Distribution Channel

A set of interdependent organizations (intermediaries) involved in the process of making a product or service available for use or consumption.

Channel decisions affect other marketing decisions involve long-term commitments

TIMEPLACE

POSSESSION

Channels of Distribution …create time, place, possession and

information utilities.

Information37 24

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Utility

BoxCreating utilities for customers.

Designing the Marketing Channel

Transporting &Inventory storage

Reducingtransactions

Materials handling

Accumulating & breaking

bulk

CreatingAssortments

(sort to quantity

Channel FunctionsProducer Intermediaries Customer

(Facilitate exchange)

Channel Functions: Promotion Producer Collaborators Customer

Promotion: - Cooperative advertising - In Store Sales promotion

SalesPromotion

AdvertisingAgencies

(Facilitate exchange)

Personal Selling:Merchant sales repssell only, no title transfer

Channel of DistributionThe Middlemen

Intermediaries- (middlemen): People involved in sales transactions that move products from the manufacturer to the final user.

› Reduces number of contacts required to reach the final user

Distribution Channels Facilitate Specialization

Intermediaries provide Exchange efficiencies

Connectivity is King for product delivery when and where

Intermediaries

Customer Producer

The Wholesaler

› Businesses that buy large quantities of goods from manufacturers, store the goods, and then resell them to other businesses.

› Take title to goods they buy for resale.

› wholesalers who manage inventory and merchandising for retailers by counting stock, filling it in when needed and maintaining store displays.

› own the goods they sell but do not physically handle the actual products.

The Retailer

› Sell goods to final consumer for personal use.

› sell goods to the customer from their own physical stores.

› Buy products from manufacturers or wholesalers.

› Non-store retailers

› Takes title for goods.

› E-tailing-online retailing; selling products over the Internet

Types of channels:

Non integrated integrated

direct

indirect

horizontalvertical

Direct channels:

Zero level/direct marketing:

manufacturer consumer

• Selling products at the production site• Having a sales force call on consumers• Using catalogs or ads to generate sales• Using telemarketing• Using the internet to make online sales

One level/indirect channel

manufacturer retailer consumer

Two level:

manufacturer wholesaler retailer

consumer

Most commonly used for staple goods, which are items that are always carried in stock and whose styles do not change frequently

3-level:

manufacturer wholesaler jobber retailer

consumer

The Distribution Channel

Followed By Coca Cola

BOTTLING PLANT

HUBS

SPOKES

RETAILERS RETAILERS RETAILERS

THANK YOU…