DEFINITION Philip Kotler, “Every producer seeks to link together the set of marketing intermediaries is called marketing channel(also trade channel or channel of distribution).” Cundiff,Still & Govani, “Marketing channel are distribution network through which producers products flow to the market.” The way through which the goods and services are distributed from manufacturer to the customer are called channel of distribution.
Type of marketing channel Intensive distribution - Where the majority of resellers stock the product with convenience products, for example, and particularly the brand leaders in consumer goods markets (price competition may be evident). Exclusive distribution - Only specially selected resellers or authorized dealer (typically only one per geographical area) are allowed to sell the product. In this retailers are restricted to keep only one manufacturers products, e.g. exclusive outlets of cars, apparels and jewellery, etc
CONTINUE……………..•Selective distribution - This is the normal pattern (in bothconsumer and industrial markets) where suitable resellers stockthe product. In this case retailers can keep the competitorsproducts in their outlets e.g. furniture etc.
FUNCTIONS OF DISTRIBUTION CHANNELSInformation: gathering and distributing marketingresearch and intelligence information about factors andforces in the marketing environment needed forplanning and aiding exchange.Promotion: developing and spreading persuasivecommunication about an offer.Contact: finding and communicating with prospectivebuyers.Matching: shaping and fitting the offer to the buyer’sneeds, including activities such as manufacturing,grading, assembling and packaging.Negotiation: reaching an agreement on price and otherterms of the offer so that ownership or possession can betransferred.
Factors related to themanufacturer •Financial resources •Marketing experience and managerial ability •Goodwill •Size of the enterprise •Desire to controlFactors related to the product •Perishability of product •Ordered products •Price per unit •Weight •Technical nature of product
Factors related to the market •No of consumers •Regional concentration •Size of orders •Nature of market •Policies of competitorsFactors related to middlemen •Availability of desired middlemen •Sales possibilities •Cost consideration •Marketing policies and strategies •Services provided by middlemenEnvironmental factors
OVERVIEW•The company was incorporated in 1995 by TomMonaghan.•Second largest pizza chain in the united states.•About 9,700 corporate and franchised stores in70 countries and all 50 U.S states.•Domino’s pizza outlet in India opened in Jan ,1996in new Delhi.•Close to 207 outlets at present spread across 45cities of India.•70% of its revenue comes from home delivery service and around 30% is over-the-counter sales.•Revenue in 2008 is $ 1.425 billion USD.
OPERATIONS•Indian operations are ranked number one for the past threeyears.•Delivers an average of 1 million pizzas per day.•Over the last 2 years they opened 15 stores in 15 new cities.•The company operates in the segment:-1.)Domestic stores2.)Domestic supply chain3.)International1.)Domestic stores•Uses its company owned- stores as a testing ground for newproducts and technologies which may then be passed ontofranchisees.•Generates income from company owned stores in the form ofstore profits.
Continue…………2.)Domestic supply chain•Vertically integrated supply system•Automatic delivery of raw materials cuts out a lot of the"back of store activities”.•Helps in keeping down food costs
DISTRIBUTION @ DOMINO’S Pizza dough processed from the wheat is then sent to the retail outlets again refrigerated Trucks. LOGISTICSLogistic requirement for sending frozen foods ,at a temperatureof -18 degree Celsius and of refrigerated trucks in which foods issent at a temperature range of between 1 to 4 Degree Celsius.
RETAIL OUTLETS1.Regular stores2.Super stores: High traffic, more counters3.Express stores: Those where people wereexpected to walk in and order than ask for home delivery
REGION WISE DISTRIBUTION NORTHEAST CENTRE WEST SOUTH
DISTRIBUTION @ DOMINO’SDough balls processed HUB AND SPOKEfrom wheat are sent to Frozen food sent at -18 MODEL withretail outlets in degree celsius commissaries as hubs.refrigerated trucks