Distribution analysis is topic from the subject Project planning and control ( PPC).

1. DISTRIBUTION
ANALYSIS
SUBMITTED BY: JYOTIKA 5815
SALONI 5810
SUBMITTED TO: DR. SHAVETA

2. MEANING
CHANNEL OF DISTRIBUTION
• DISTRIBUTION CHANNEL (MARKETING CHANNEL) IS A SET OF
INDEPENDENT ORGANIZATIONS OR PEOPLE INVOLVED IN THE PROCESS
OF MAKING A PRODUCT OR SERVICE AVAILABLE TO THE CONSUMER OR
BUSINESS USER
• USED TO MOVE THE CUSTOMER TOWARDS THE PRODUCT
• TEA IS PRODUCED IN ASSAM BUT CONSUMED ALL OVER THE COUNTRY
• THE DISTRIBUTION CHANNEL OVERCOMES THE PLACE BARRIER IN
DELIVERING THE PRODUCTS

3. COMMON STYLE OF DISTRIBUTION
CHANNEL:

4. CONCEPT
• VARIOUS MARKETING INTERMEDIARIES ARE USED IN
TRANSFERRING THE PRODUCTS FROM THE HANDS OF
PROCDUCERS TO FINAL CONSUMERS.
• THESE MARKETING INTERMEDIARIES CARRY ALTERNATE
NAMES SUCH AS WHOLESALERS, DISTRIBUTORS,
RETAILORS, AGENTS.

5. MARKETING INTERMEDIARIES:
THE ORGANISATIONS THAT THE PRODUCT FLOWS THROUGH ON ITS WAY TO THE
CUSTOMER.

6. WHY ARE THESE INTERMEDIARIES NEEDED?
• MARKETING INTERMEDIARIES ALLOW FOR THE SMOOTH FLOW OF
PRODUCTS AND PRODUCT INFORMATION FROM THE MANUFACTURER
TO THE CONSUMER.
• INTERMEDIARIES HELP MANUFACTURES DISTRIBUTE THEIR PRODUCTS,
AND HELP CONSUMERS EASILY FIND AND OBTAIN THE PRODUCTS THAT
THEY NEED TO BUY.
• INTERMEDIARIES REDUCE THE NUMBER OF CONTACTS NECESSARY IN
ORDER TO MAKE A SALE THEREBY FACILITATING THE MARKETING
PROCESS.
• EXAMPLE: CONSUMER NEEDS SUGAR, TEA, RICE, PULSES.

9. FUNCTIONS OF DISTRIBUTION CHANNELS
• SORTING: MIDDLEMEN PROCURE GOODS FROM VARIOUS
MANUFACTURERS AND DO SORTING.

10. • FUNCTIONS
• ACCUMULATION :MIDDLEMEN MAINTAIN A LARGE STOCK OF
GOODS SO THAT THERE IS SMOOTH SUPPLY OF GOOD
WITHOUT ANY DELAY.
• VARIETY/ASSORTMENT: MIDDLEMEN PROCURE GOODS AND
ASSEMBLE THEM ACCORDING TO CUSTOMER.

11. FUNCTIONS
• PACKING: MIDDLEMEN BUY THE PRODUCT IN BULK AND
REPACKS THEM. EXAMPLE:MBAG OF 100 KG WHEAT ~
REPACKED~2KGS OR 5KGS OR 100 KGS
• PROMOTION: MIDDLEMEN ALSO OFFER SOMESALES
PROMOTIONAL TOOLS TO ATTRACT CUSTOMERS.

12. FUNCTIONS
• RISK TAKING:
• RISK OF DAMAGE IN TRANSPORT
• GIVING GOODS ON CREDIT

13. DIRECT CHANNELS VS INDIRECT CHANNELS
 MARKETING CHANNEL WHERE THERE IS NO INTERMEDIARY LEVELS
BETWEEN MANUFACTURER AND CONSUMER-- THESE ARE KNOWN AS
DIRECT CHANNELS/ 0 LEVEL CHANNELS.
 SOME MARKETING CHANNELS ARE RELATIVELY LONG WITH MANY
INTERMEDIARIES-- THESE ARE KNOWN AS INDIRECT CHANNELS/ 1,2,3
LEVEL OF CHANNELS.

14. DIFFERENT CHANNELS OF DISTRIBUTION
0
LEVEL
DIRECT
CHANNEL
1 LEVEL
2 LEVEL
3
LEVEL
INDIRECT
CHANNEL

16. DISTRIBUTION INTENSITY
Extensive Distribution
Intensive Distribution
Selective Distribution

17. DISTRIBUTION INTENSITY
• INTENSIVE DISTRIBUTION: CO. COVERS ALL TYPES OF
DISTRIBUTION CHANNELS. EXAMPLE : CONVENIENCE
GOODS LIKE DAILY USE SOAP.
• SELECTIVE DISTRIBUTION: MIDDLEMEN PREFFED HAVING
GOOD REPUTATION AND GOOD CUSTOMER SERVICE. EG. TV
• EXTENSIVE DISTRIBUTION: USED WHEN HIGH LEVEL OF
CUSTOMER SERVICE IS REQUIRED. EG: LUXUARY CARS

18. RETAILING:
• RETAILING INCLUDES ALL THE ACTIVITIES IN SELLING PRODUCTS OR SERVICES
DIRECTLY TO FINAL CONSUMERS FOR THEIR PERSONAL, NON-BUSINESS USE
• RETAILERS ARE BUSINESSES WHOSE SALES COME PRIMARILY FROM RETAILING
*RETAILING CAN BE DONE IN STORES (STORE RETAILING) OR OUT OF A STORE (NON
STORE)
NON STORE RETAILING INCLUDES SELLING TO FINAL CONSUMER THROUGH:
• DIRECT MAIL T.V SHOPPING
• CATALOGUES HOME AND OFFICE PARTIES
• TELEPHONE DOOR TO DOOR SELLING
• INTERNET VENDING MACHINES

19. TYPES OF RETAILERS
1. SELF SERVICE
2. LIMITED SERVICE
3. FULL SERVICE

21. TYPES OF RETAILERS:
RELATIVE PRICES:
Discount stores
Off-price
retailers
Factory Outlets
Warehouse
Clubs

22. TYPES OF RETAILERS:
ORGANIZATIONAL APPROACH
Corporate
chains
Voluntary
chains
Retailer
cooperatives
Franchise
organisation
Merchandising
conglomerates

23. ORGANIZATIONAL APPROACH
 CORPORATE CHAINS ARE TWO OR MORE OUTLETS THAT ARE COMMONLY OWNED
AND CONTROLLED
 SIZE ALLOWS THEM TO BUY IN LARGE QUANTITIES AT LOWER PRICES AND GAIN
PROMOTIONAL ECONOMIES
 VOLUNTARY CHAINS ARE WHOLESALE-SPONSORED GROUPS OF INDEPENDENT
RETAILERS THAT ENGAGE IN GROUP BUYING AND COMMON MERCHANDISING
 RETAILER COOPERATIVES IS A GROUP OF INDEPENDENT RETAILERS THAT BAND
TOGETHER TO SET UP A JOINT-OWNED, CENTRAL WHOLESALE OPERATION AND
CONDUCT JOINT MERCHANDISING AND PROMOTION EFFORT
 ACE HARDWARE
 FRANCHISE ORGANIZATIONS ARE BASED ON SOME UNIQUE PRODUCT OR SERVICE;
ON A METHOD OF DOING BUSINESS; OR ON THE TRADE NAME, GOOD WILL, OR
PATENT THAT THE FRANCHISOR HAS DEVELOPED

24. ORGANIZATIONAL APPROACH
 MERCHANDISING CONGLOMERATES ARE CORPORATIONS THAT COMBINE SEVERAL
RETAILING FORMS UNDER CENTRAL OWNERSHIP

25. RETAILER MARKETING DECISIONS
SEGMENTATION, TARGETING, DIFFERENTIATION, AND POSITIONING INVOLVES THE
DEFINITION AND PROFILE OF THE MARKET SO THE OTHER RETAIL MARKETING
DECISIONS CAN BE MADE.
PRODUCT ASSORTMENT AND SERVICE PRODUCT
ASSORTMENT AND SERVICE DECISIONS INCLUDE:
 PRODUCT ASSORTMENT
 SERVICES MIX
 STORE ATMOSPHERE

26. RETAILER MARKETING DECISIONS
PRICE DECISION
PRICE POLICY MUST FIT THE TARGET MARKET AND POSITIONING, PRODUCT AND SERVICE
ASSORTMENT, AND COMPETITION
 HIGH MARKUP ON LOWER VOLUME
 LOW MARKUP ON HIGHER VOLUME
o HIGH-LOW PRICING INVOLVES CHARGING HIGHER PRICES ON AN EVERYDAY BASIS,
COUPLED WITH FREQUENT SALES AND OTHER PRICE PROMOTIONS
o EVERYDAY LOW PRICE (EDLP) INVOLVES CHARGING CONSTANT, EVERYDAY LOW
PRICES WITH FEW SALES OR DISCOUNTS

27. RETAILER MARKETING DECISION:
PROMOTION DECISION:
Advertising
Personal
Selling
Sales
Promotion
Public
Relationship
Direct
Marketing

28. RETAILER MARKETING DECISIONS
PLACE DECISION
CENTRAL BUSINESS DISTRICTS ARE LOCATED IN CITIES AND INCLUDE DEPARTMENT
AND SPECIALTY STORES, BANKS, AND MOVIE THEATERS
SHOPPING CENTER IS A GROUP OF RETAIL BUSINESSES PLANNED, DEVELOPED,
OWNED, AND MANAGED AS A UNIT
 REGIONAL SHOPPING CENTERS
 COMMUNITY SHOPPING CENTERS
 NEIGHBORHOOD SHOPPING CENTERS
 POWER CENTER
 LIFESTYLE CENTERS

29. WHOLESALING
WHOLESALING INCLUDES ALL ACTIVITIES INVOLVED IN SELLING GOODS AND SERVICES TO
THOSE BUYING FOR RESALE OR BUSINESS USE
WHOLESALERS ARE USED BECAUSE THEY ARE OFTEN BETTER AT PERFORMING THE FOLLOWING
CHANNEL FUNCTIONS THAN OTHER CHANNEL:

30. WHOLESALING
 SELLING AND PROMOTING INVOLVES THE WHOLESALER'S SALES FORCE HELPING THE
MANUFACTURER REACH MANY SMALLER CUSTOMERS AT LOWER COST
 BUYING ASSORTMENT BUILDING INVOLVES THE SELECTION OF ITEMS AND BUILDING OF
ASSORTMENTS NEEDED BY THEIR CUSTOMERS, SAVING THE CUSTOMERS WORK
 BULK BREAKING INVOLVES THE WHOLESALER BUYING IN LARGER QUANTITY AND
BREAKING INTO SMALLER LOTS FOR ITS CUSTOMERS
 WAREHOUSING INVOLVES THE WHOLESALER HOLDING INVENTORY, REDUCING ITS
CUSTOMERS' INVENTORY COST AND RISK
 TRANSPORTATION INVOLVES THE WHOLESALER PROVIDING QUICK DELIVERY DUE TO ITS
PROXIMITY TO THE BUYER
 FINANCING INVOLVES THE WHOLESALER PROVIDING CREDIT AND FINANCING SUPPLIERS
BY ORDERING EARLIER AND PAYING ON TIME

31. WHOLESALING
 RISK BEARING INVOLVES THE WHOLESALER ABSORBING RISK BY TAKING TITLE AND
BEARING THE COST OF THEFT, DAMAGE, SPOILAGE, AND OBSOLESCENCE
 MARKET INFORMATION INVOLVES THE WHOLESALER PROVIDING INFORMATION TO
SUPPLIERS AND CUSTOMERS ABOUT COMPETITORS, NEW PRODUCTS, AND PRICE
DEVELOPMENTS

32. WHOLESALING
MANAGEMENT SERVICES AND ADVICE INVOLVES WHOLESALERS HELPING RETAILERS
TRAIN THEIR SALES CLERKS, IMPROVE STORE LAYOUTS, AND SET UP ACCOUNTING AND
INVENTORY CONTROL SYSTEMS
TYPES OF WHOLESALERS:
Merchant
Wholesalers
Agents and
Brokers
Manufacture’
s sales
branches &
offices

33. TYPES OF WHOLESALERS
WHOLESALERS MERCHANT
WHOLESALERS IS THE LARGEST GROUP OF WHOLESALERS AND INCLUDE:
 FULL-SERVICE WHOLESALERS WHO PROVIDE A FULL SET OF SERVICES
 LIMITED SERVICE WHOLESALERS WHO PROVIDE FEW SERVICES AND SPECIALIZED
FUNCTIONS
BROKERS AND AGENTS DO NOT TAKE TITLE, PERFORM A FEW FUNCTIONS, AND SPECIALIZE BY
PRODUCT LINE OR CUSTOMER TYPE
 BROKERS BRING BUYERS AND SELLERS TOGETHER AND ASSIST IN NEGOTIATIONS
 AGENTS REPRESENT BUYERS OR SELLERS
MANUFACTURERS' SALES BRANCHES AND OFFICES IS A FORM OF WHOLESALING BY SELLERS
OR BUYERS THEMSELVES RATHER THAN THROUGH INDEPENDENT WHOLESALERS

34. WHOLESALER MARKETING DECISIONS
TARGET MARKET AND POSITIONING DECISIONS
 SIZE OF CUSTOMER
 TYPE OF CUSTOMER
 NEED FOR SERVICE
MARKETING MIX DECISIONS
 PRODUCT
 PRICE
 PROMOTION
 PLACE

35. ADVANTAGES OF DISTRIBUTION ANALYSIS
1. RESULTS IN CUSTOMER CONVENIENCE
2. CUSTOMERS CAN BUY IN SMALL QUANTITIES
3. CUSTOMERS RECEIVE FINANCIAL SUPPORT
4. IT IS COST SAVING
5. IT IS TIME SAVING
6. CHANNEL MEMBERS ALSO HELP IN BOOSTING SALES
7. CHANNEL MEMBERS PROVIDE VALUABLE INFORMATION
8. BIGGER REACH
9. INCREASED CORE COMPETENCY

36. DISADVANTAGES OF DISTRIBUTION
ANALYSIS
1. LOSS OF PRODUCT IMPORTANCE DUE TO DELAY
2. MORE IMPORTANCE TO COMPETITOR’S PRODUCT
3. LACK OF COMMUNICATION CONTROL
4. REVENUE LOSS