Distribution Management

1. DISTRIBUTION MANAGEMENT

2. Marketing channels
• Marketing channels encompass tools, strategies, and platforms facilitating product/service
distribution from producers to consumers, fostering crucial producer-consumer relationships.
• Channels can be online, offline, paid, or unpaid, playing a pivotal role in a product's success.
• Marketing channels, synonymous with distribution channels, are essential for product delivery.
• Examples include Coca-Cola's use of direct and indirect channels for widespread product
distribution.

3. Marketing Channels
1.Direct Marketing Channel: Sales occur directly from producers to consumers without the involvement of
third parties. (Online shopping websites such as Amazon sell products directly to customers through their
platform.)
2. Indirect Marketing Channel: Involves third parties like wholesalers, distribution agents, and retailers in the
distribution
(Amazon also uses indirect marketing channels where independent retailers sell products through the
platform, and these retailers handle the fulfillment of deliveries.)
One-Level Channel: Manufacturer → Retailer → Consumers.
Two-Level Channel: Manufacturer → Wholesaler → Retailer → Consumers.
Three-Level Channel: Manufacturer → Distribution Agent → Wholesaler → Retailer → Consumers.

4. Importance of Marketing Channels
• Market Access
• Strategic Distribution
• Customer Reach
• Optimized Distribution
• Competitive Advantage
• Adaptability
• Brand Positioning
• Builds a Healthy Relationship with Customers
Example: Companies like Amazon and Apple strategically leverage market access through various channels, including
online platforms, physical retail stores, and partnerships. Their strategic distribution spans e-commerce dominance,
direct sales, and collaborations, ensuring optimized distribution, unparalleled customer reach, a competitive
advantage, adaptability to market shifts, and a strong brand positioning, maximizing overall market impact.

5. Strategic Flows in Marketing Channels
• Systematic Approach: Comprehensive strategy, Planning, execution, measurement, and
Marketing campaigns
• Strategic Flows: Analyze distribution channels, Marketing mix assessment, Supply chain
management, Optimize product/service delivery, enhance overall efficiency
• Marketing Mix Impact: Channel analysis and effective marketing mix, Increased sales and
revenue Align with consumer preferences
• Supply Chain Efficiency: Robust supply chain management, logistical efficiency, Seamless
distribution Operational effectiveness

6. • Britannia Industries, established in 1892, dominates India's biscuit market with 40% share. Their
systematic approach to marketing and distribution is key to their success.
• Data-driven planning: Britannia utilizes market research and consumer insights to tailor campaigns across regions.
Recent digital initiatives include influencer marketing and personalized offers via their "Treat Club" app, driving a 90%
app engagement rate.
• Optimized marketing mix: Their diverse product portfolio (Good Day, Milk Bikis, Butter Cookies) caters to varied price
points and regional preferences. A strong distribution network of 5.5 million outlets ensures products reach even
remote corners.
• Supply chain mastery: Britannia's vertically integrated model, from wheat procurement to baking, minimizes supply
chain disruptions. Investment in automation boosts efficiency, keeping up with the ever-growing demand.
• Brand loyalty: Britannia builds long-term relationships with consumers through innovative campaigns like "Eat Like
Mum" and community engagement initiatives. This fosters brand loyalty and repeat purchases.a
Britannia Industries: Reigning Kings of Biscuits in India

7. Strategic Distribution through Intermediaries
Functions of Intermediaries
•Product Storage and Handling
•Logistical Support
•Market Intelligence
They perform valuable functions such as
warehousing, transportation, inventory
management, and market intelligence.
Benefits of Intermediaries
•Reduced Costs
•Market Coverage
•Improved Efficiency
•Product information and promotion
•Standardization and quality control
•After-sales services

8. Channel Structure and Ancillary Structure
Aspect Channel Structure Ancillary Structure
Definition
Refers to the organization and arrangement of
channels through which products/services move
from producers to consumers.
Refers to additional or supporting structures
that enhance or supplement the main
structure.
Primary Focus
Emphasizes the core pathways for product/service
distribution.
Focuses on supplementary elements that add
value or support the main structure.
Components
Involves primary channels, such as direct or indirect
channels, for efficient product/service flow.
Encompasses supportive elements like
marketing, customer service, and technology to
enhance overall operations.
Purpose
Aims to ensure effective and direct movement of
products/services to end consumers.
Aims to improve and complement the main
structure, adding value, and enhancing
customer experience.
Xiaomi: Conquering India's smartphone market with aggressive pricing, an online-first strategy, and a
diverse product portfolio (budget to premium). Dominates online sales through flash deals and
community building. Robust service network across 5,000+ stores strengthens offline presence

9. Behavioral Processes in Marketing Channels
•Consumer Decision Making
•Perception and Attitudes
•Learning and Information
•Motivation Factors
•Social and Cultural Influences
•Emotional Connection
•Perceived Value
•Decision-Making Factors
•Risk Perception
•Post-Purchase Behaviour
Swiggy, the epitome of online food delivery in India, masterfully
navigates the realm of real-time decision-making and consumer
influence. Utilizing dynamic interfaces and a "craving index"
based on local trends, Swiggy persuades users toward popular
and trusted dishes. Leveraging learning algorithms and location
data, it predicts and suggests personalized culinary delights.
The promise of lightning-fast deliveries taps into the primal need
for instant gratification, with dynamic discounts adding allure.
Social and cultural integration, gamified elements, and a focus
on convenience further enhance the user experience. By
simplifying decision-making, ensuring transparency, and offering
peace of mind through real-time tracking, Swiggy has
transformed food delivery into an artful symphony of technology,
psychology, and culinary delight.

10. Six Pillars of Distribution Mastery

11. Croma, the electronics king, was losing its shine. Sales were flatlining, and its stores felt like outdated islands in the
digital age. So, in 2019, they embarked on a daring quest to reclaim their throne.
First, they set clear goals: conquer 15% of online sales, expand their empire to 100 new stores, and become the
"tech-savvy raja" of electronics. To achieve this, they needed a unified voice. So, they developed a brand language,
launched catchy campaigns, and gave all their stores a modern makeover.
But Croma knew they couldn't just talk the talk. They needed to understand their subjects, the customers. They divided
them into tribes based on what they bought and how they shopped. Then, they tailored products, offers, and even in-
store experiences to each tribe's needs.
Information became their key weapon. They built a real-time treasure trove for their partners, letting them see stock
levels, product details, and even how well their stores were doing. And to keep everyone on the same page, they held
regular meetings and webinars, sharing updates and addressing concerns.
Technology became their trusty steed. Store staff got a mobile app for order tracking and product knowledge.
Customers got to virtually test products through VR experiences. And behind the scenes, automated systems
optimized inventory and deliveries.
The results were electrifying! Croma's online empire grew by leaps and bounds, their stores sprouted like mushrooms
in new cities, and their brand image shone brighter than ever. The once-stagnant king had become a tech-driven
dynamo, proving that a clear vision, targeted communication, and a dash of tech magic can turn any business into a
success story.
Strategic Communication in Distribution Channels