Presented To:Mr. Sheraz Aslam

Presented By:Sajjad RazaAD-515146

ThanksMr. Sheraz Aslam

ACKNOWLEDGEMENT

DEVELOPING AND IMPLEMENTING DISTRIBUTION

STRATEGY

OUTLINE

AbstractLiterature reviewsIntroductionPractical study Introduction of Cellular telecom industryData collectionData analysisConclusionRecommendationsReferencesAnnexure

Abstract Innovation is a fundamental virtue of marketing. This study is an attempt to understand and explain the

distribution channel structures and relation with distribution channels and sale level and margin level of retailers in cellular telecom industry in Pakistan.

Usual disclaimers associated with qualitative research methodology (Gummesson 1988) apply in this case concerning the generalisability and validity of the findings.

Key words: Marketing Strategy Distribution channels Relation with distribution channels

Literature Reviews

Distribution (place)The process of getting the goods from the manufacturer or supplier to the user.

Distribution strategyManagement’s plan for moving products to intermediaries and final customers.

Distribution channel Path or 'pipeline' through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them flow in the opposite direction (from consumer to the vendor).

Dictionary of Business Terms

Introduction

Distribution Channel FunctionsDistribution Channel Functions

Risk TakingRisk Taking

FinancingFinancing

PhysicalDistribution

PhysicalDistribution

NegotiationNegotiation InformationInformation

PromotionPromotion

ContactContact

MatchingMatching

Physical Distribution

TruckFlexible in routing & time schedules, efficient

for short-hauls of high value goods

TruckFlexible in routing & time schedules, efficient

for short-hauls of high value goods

Transportation ModesTransportation Modes

• Rail• Nation’s largest carrier, cost-effective • for shipping bulk products, piggyback

• Rail• Nation’s largest carrier, cost-effective • for shipping bulk products, piggyback

WaterLow cost for shipping bulky, low-value

goods, slowest form

WaterLow cost for shipping bulky, low-value

goods, slowest form

PipelineShip petroleum, natural gas, and chemicals

from sources to markets

PipelineShip petroleum, natural gas, and chemicals

from sources to markets

AirHigh cost, ideal when speed is needed or to

ship high-value, low-bulk items

AirHigh cost, ideal when speed is needed or to

ship high-value, low-bulk items

Practical Study

Cellular Telecom Industry

Brief Introduction

Cellular companies that are working in Pakistan Mobilink 1994 (10000 cities, towns, and villages) Mobilink has 29.55 million

customers by July 2009. Ufone 2336 cities of Pakistan, GT Road, Super Highway & Motorway Warid is an Abu Dhabi based mobile telecommunication firm providing

telephony services in Bangladesh, Congo, Pakistan and Uganda. Telenor 2004 www.telenor.com.pk Zong is the first International brand of China Mobile being launched in

Pakistan 95 million mobile connections in Pakistan

Products of cellular Telecom Industry

• Mobile connections Prepaid connections Postpaid connections

• Easy load or Top up• Prepaid Cards• MNP• PCO• WiMax Mobilink infinity

• Utility Bill payment service by Telenor and Zong

• Value added services provides all companies

Distribution Channel of Cellular Telecom Industry

COMPANY

MAIN OFFICES

FRANCHISES

RETAILERS

End Users

Data collection

Questionnaire on distribution channels• Name: ___________ Gender male/female

Age : ___________ No of years company establish: __________ Company:___________ Manager’s level: ___________ Industry:____________

Note: Please tick one• Q.1 What is competition level in your industry?• Q.2 What is sale level of your company?• Q.3 What is profit level of per unit (unit margin) ?• Q.4 Seasonality level? (Are your product seasonal)• Q.5 Number of retailers?• Q.6 Retailers sale level?• Q.7 company (manufacture) retailer relationship level?We gave four choices to all respondents that are High, Medium, Low, or No

Data Collection

Sr# NAME

GENDER

AGE

YEAR MANAGER LEVEL INDUSTRY COMPANY

Q1

Q2

Q3

Q4

Q5

Q6

Q7

1 TEHSEEN BUTT MALE 36 2 FINANCE MANAGER TELECOM ZONG 4 4 2 3 4 3 2

2 NAVEED MALE 28 2 SALES MANAGER TELECOM ZONG 4 3 2 3 3 2 3

3 FAISAL TAJ MALE 25 2 W.I.C MANAGER TELECOM ZONG 4 3 3 4 4 3 4

4 USMAN ALI MALE 26 8 FRANCHISE MANAGER TELECOM UFONE 4 3 3 1 4 4 4

5 KASHIF RAZA MALE 29 8 ZONAL SALES MANAGER TELECOM U FONE 4 4 3 1 4 3 3

6 RAFI SULTAN MALE 32 15 IN HOUSE MANAGER TELECOM MOBILINK 4 4 3 1 4 3 3

7 ZAHID IQBAL MALE 23 15 FINANCE MANAGER TELECOM MOBILINK 3 4 2 1 4 4 3

8 IRFAN MALE 27 15SALES CONTROL

MANAGER TELECOM MOBILINK 4 4 4 3 4 4 4

9 SARFRAZ MALE 38 6 FRANCHISE MANAGER TELECOM TELENOR 4 4 2 1 4 4 4

10 SHAHZAD MALE 30 4 FRANCHISE MANAGER TELECOM WARID 4 3 3 1 3 4 4

Data Analysis

PERCENTAGE TABLE      

  Q1 Q2 Q3 Q4 Q5 Q6 Q7

HIGH 90 60 10 10 80 50 50

MEDIUM 10 40 50 30 20 40 40

LOW 0 0 40 0 0 10 10

NO 0 0 0 60 0 0 0

FREQUENCY TABLE      

  Q1 Q2 Q3 Q4 Q5 Q6 Q7

HIGH 9 6 1 1 8 5 5

MEDIUM 1 4 5 3 2 4 4

LOW 0 0 4 0 0 1 1

NO 0 0 0 6 0 0 0

0

2

4

6

8

1 0

Q 1 Q 2 Q 3 Q 4 Q 5 Q 6 Q 7

H IG H

M E D IU M

L O W

N O

0

2 0

4 0

6 0

8 0

1 0 0

Q 1 Q 2 Q 3 Q 4 Q 5 Q 6 Q 7

H IG H

M E D IU M

L O W

N O

Data AnalysisAfter analyzing the data researcher concludes as under:• Responses of Q # 1 indicates that 90 % of the respondent says that competition level in

cellular telecom industry is high and only 10 % respondent says middle level of competition

• Responses of Q # 2 indicates that 60 % of the respondent says that sale level in cellular telecom industry is high and only 40 % respondent says middle level of sale

• Responses of Q # 3 indicates that 10 % of the respondent says that profit level per unit in cellular telecom industry is high and 50 % respondent says middle level of profit per unit and 40% says low profit

• Responses of Q # 4 indicates that 10 % of the respondent says that seasonality level in cellular telecom industry is high and 30 % respondent says middle level of seasonality and 60% says no seasonality level

• Responses of Q # 5 indicates that 80 % of the respondent says that retailers in cellular telecom industry is high and only 20 % respondent says middle level of retailers

• Responses of Q # 6 that 50 % of the respondent says that retailers sale level in cellular telecom industry is high and 40 % respondent says middle level of sale and 10% says low sale level

• Responses of Q # 7 indicates that 50 % of the respondent says that company-retailers relation level in cellular telecom industry is high and 40 % respondent says middle level of company-retailers relation and 10% says low relation level

Conclusion• Competition level is very high in telecom

industry• Sale level of companies is high of Mobilink

and other companies Telenor, Ufone, Warid is medium and Zong sale level is low

• Profit level is medium the cellular companies gave to retailers

• There is no seasonality level in this industry but it effects on happy occasions and holidays

• Mobilink Telenor retailers are high and Warid Ufone Zong retailers are medium

• Mostly retailers sale level is high and some retailer sale level is medium

• Companies relationship is high and some companies relation is medium

Recommendations

• The relation with retailer must be high

• If the relation is good retailer gave good sale level to companies

• Increase the profit level of the retailer

References

• Mobilink, Warid, Ufone, Telenor, Zong managers

• Marketing Text book principles of marketing

• A grounded exploration of sales and distribution channels structures in thirteen industries in India leading to a classification scheme Dr parthap oburai

• Websites• www.wikipedia.com• www.scrbd.com

Annexure

• Article A grounded exploration of sales and distribution channels structures in thirteen industries in India leading to a classification scheme Dr parthap oburai

• 10 solved questionnaires

THANKS

FOR YOUR

NICE PARTICIPATION