A distribution channel is the chain of businesses that move goods from manufacturers to consumers. It can include wholesalers, distributors, retailers, and more. There are different types of distribution channels like direct to consumer, dealer networks, and through value-added resellers. Major channels are direct distribution, where manufacturers sell directly to consumers through online sites or sales teams, and indirect distribution, where manufacturers sell through other businesses like wholesalers and retailers. Direct channels have lower costs but are more difficult to manage at scale, while indirect channels are simpler but manufacturers have less control.

1. DISTRIBUTION OF CONSUMER GOODS

2. WHAT IS A DISTRIBUTION CHANNEL ?
A distribution channel is a chain of businesses or
intermediaries through which goods or service passes
until it reaches the end consumer. It can include :
Wholesaler/Distributor
Direct/Internet
Direct/SalesTeam
Value-Added Reseller (VAR)
Consultant
Dealer
Retail
Sales Agent/Manufacturer’s Rep

3. EXAMPLES OF DISTRIBUTION CHANNELS
DIRECTTO END USER
• You have a sales team that
sells directly to fortune 100
companies
• You have a second product
line for small businesses.
Instead of using your sales
team, you sell this line
directly to end-users
through your website and
marketing campaigns.
SELLTHROUGH A
DEALER NETWORK
• You sell a product through
a geographical network of
dealers who sell to end-
users in their areas.The
dealers may service the
product as well.
• Your dealers are essentially
your customers, and you
have a strong program to
train and support them
with marketing campaigns
and materials.
SELLTHROUGH
VAR
• You sell a product to a
company who bundles it
with services or other
products and resells it.
• That company is called a
Value Added Reseller
(VAR) because it adds
value to your product.

4. MAJOR DISTRIBUTION CHANNELS

5. DIRECT DISTRIBUTION
A direct channel of distribution is the shortest and
simplest form of distribution channel;
low distribution cost
it has become increasingly common since the advent of
the Internet.
EXAMPLE : Amazon

7. AMAZON’S DISTRIBUTION

8. PROS AND CONS
Direct Distribution
 Direct channels tend to be more expensive to start running and
can sometimes require significant capital investment.Warehouses,
logistics systems, trucks and driving staff will need to be set up.
However, once those are in place, the direct channel is likely to be
shorter and less costly than an indirect channel.
 Direct selling can be difficult to manage on a large scale, but it
often allows the manufacturer to have a better connection to its
consumer base.

9. INDIRECT DISTRIBUTION
The most challenging part of indirect distribution
channels is that another party has to be entrusted with
the manufacturer's products and customer interaction.
Indirect channels also free the manufacturer from any
startup costs.With the right relationship, they are much
simpler to manage than direct distribution channels.
EXAMPLE : UNILEVER

11. THANK YOU
Presentation by
MANU KRISHNA