This document discusses distribution and distribution management. It defines distribution as making goods or services available to end consumers, which can be done directly by a company or indirectly through intermediaries. It then discusses key functions of distribution like packaging, inventory management, order processing, logistics, and communication. It also covers factors that affect distribution like product characteristics, market size, company size and product mix, and the marketing environment. The document outlines different levels of distribution channels from zero-level to multi-level and different distribution strategies like intensive, selective, and exclusive distribution. Finally, it lists the main steps in physical distribution management.

1. Place/Distribution
Presented by:
Shashank Kathpal

2. About
• Distribution means the
process by which we
make the goods or the
service available to the
end consumer.
• The distribution of the
products can be done by
the organization itself
which is direct
distribution. Or it can hire
intermediaries and form
distributions channel i.e.
indirect distributions
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3. Functions
• Packaging: Providing adequate packaging for a product so it can be
transported safely.
Example: Breakfast cereal
– Box shape, size, graphics, and materials used
– Cardboard or paperboard material
– Printing and Labeling
• Inventory Management: Maintaining a good level of inventory is
hugely important to distribution. Management of inventory is one
of the main responsibilities for distribution management.
– Cereal boxes are packed into larger containers
– Based on Forecasted demand for each product
• Order Processing: Once an order comes in from a customer,
distribution management needs to plan for the delivery.
– This involves collecting the stock, loading it and delivering it in a
timely manner. Approval needs to be sent and invoicing done
for this step to be valid.
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4. Functions
• Logistics: Mode of transport is important to consider for all
orders (Domestic vs Overseas)
– Cereal boxes are transported from warehouses to distribution centers
and then to retailers.
– Efficient distribution networks are crucial for timely delivery and
minimizing transportation costs
• Communication: Clear communication is needed
– Both on and offsite at distribution centers.
– Ensure that the correct products are shipped and
– Customers know when they will receive their items.
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5. Factors affecting
Distribution
• Product: Whether the product is
perishable or durable will be a factor in
deciding its distributions.
– Milk Products
• Market: The size of the market will be a
factor.
– In a large market, the direct distribution
may be a perfect choice.
– If the markets are scattered indirect
channel will be more suitable
• Company:
– The size of the company and
– The product-mix.
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6. Factors affecting
Distribution
• Marketing Environment:
– Slow economy: Shorter distributions
– Growing economy: Complex
• Cost: The cost of the channel
– Transportation,
– Warehousing
– Storage
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7. Levels
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8. Levels
• Zero Level Channel:
– Direct marketing channel
has no intermediary
levels
– Eureka Forbes, Holiday
Companies
• One Level Channel:
– One selling intermediary
– Usually a retailer
– Sony, Large Retailers,
Canon
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9. Levels
• Two Level Channel:
– Two intermediary levels – a
wholesaler and a retailer.
– A large quantities of
merchandise
– Pharmaceutical Industry
• One Level Channel:
– Three intermediary levels –
a wholesaler, a retailer and
a jobber
– Food Distribution
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10. Strategies
• Intensive Distribution – This
strategy may be used to distribute
lower prices products.
– FMCG
• Selective Distribution – In this
strategy, a product may be sold at
a selective number or outlets.
– Levi’s & Tata Motors
• Exclusive Distribution – A higher
priced item may be sold at a single
outlet. This is exclusive
distribution.
– BMW
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11. Steps in Physical Distribution
• Establish Objectives
– Cost Minimization,
– Speed
• Examining Cost Trade-Off
– Cost, Speed and safety level
• Identify Alternatives
– Levels,
– Services
• Finalizing Distribution
Strategies
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12. Assignment: Analyze the distribution
strategy of any company.
Note: Each Group must choose
different industry
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