This document discusses marketing channels at different levels. It begins by introducing a direct selling company that sells beauty products through 58 lakh representatives in over 100 countries, generating Rs. 45,000 crores in annual revenue. Customers place orders with sales representatives, who place weekly orders with the company and distribute products. It also discusses a multi-branded discount store operating in 150 outlets in Indian cities. The store has exclusive tie-ups with various brands and is expanding to new locations. Finally, it briefly introduces a multi-branded gift shop based in Mumbai that offers gift articles, accessories, gadgets and toiletries.

1. MARKETING CHANNELS

2. TEAM MEMBERS
Bhushan Baragade
Meghana Bhogle
Ninad Gaikwad
Ajay Ghangare
Kaizeen Ghaswalla

3. PLACE
Process of making a product or service “available” for
use or consumption by a consumer

4. MARKETING CHANNELS
A set of practices or activities necessary to transfer the
ownership of goods and to move goods,
from the point of production to the point of consumption

5. IMPORTANCE
•Link producers to buyers
•Convert potential buyers to profitable customers
•Achieve targeted service output levels

6. INTERMEDIARIES
Means used to transfer a product from manufacturer to
the end user
•Wholesaler
•Retailer
•Jobber

7. LEVEL OF CONSUMER
MARKETING CHANNELS
0 Level
1 Level
2 Level
3 Level

8. CHANNEL DESIGN DECISIONS
•Analyzing Customers' desired service output levels
•Establishing the channel objectives & constraints
•Identifying the major channel alternatives
•Evaluating the major channel alternatives

9. SERVICE OUTPUT LEVEL
• Lot size
• Waiting and Delivery time
• Spatial convenience
• Product variety
• Service back-ups

10. CHANNEL MANAGEMENT
DECISIONS
•Selecting channel members
•Motivating channel members
•Evaluating channel members
•Modifying channel arrangements

11. TRADE PROMOTION TOOLS
Specialty advertising
Coupons
Samples
Bonus packs
Rebates
Contests

12. 0 LEVEL

15. World‟s largest direct seller of beauty products like
skincare, make-up, fragrances, personal care,
fashion jewellery
58 lakh representatives in over 100 countries
Global turnover- Rs.45000crores

16. HOW DOES IT WORK?
Customer approaches sales representative and places
order
Sales representative places weekly orders with the
company
Products are delivered to the sales representative who
in turn distributes it to the customer

17. SERVICE OUTPUT
• Lot size
• Waiting and Delivery time
• Spatial convenience
• Product variety
• Service back-ups

18. TRADE PROMOTION TOOLS
•Sales rep sells the product at brochure price
•Sales rep earns discounts depending upon targets
achieved
•Sales rep can be promoted to „Leader‟ after achieving
certain targets
•Leader earns commission

19. 1 LEVEL

22. A multi-branded discount store with exclusive tie-ups
with various brands
Currently operates in 150 retail outlets in Mumbai,
Hyderabad, Vizag, etc
Opening stores in Delhi, Surat and Nashik

23. SERVICE OUTPUT
• Lot size
• Waiting and Delivery time
• Spatial convenience
• Product variety
• Service back-ups

24. TRADE PROMOTION TOOLS

25. 2 LEVEL

28. A multi-branded gift shop availing gift
articles, accessories, gadgets and toiletries
Currently based in Bandra

29. SERVICE OUTPUT

30. PORTER’S 5 FORCES

31. TRADE PROMOTION TOOLS
•Cash discounts
•Trade discounts
•Schemes
•Offers
•Other promotional tools

32. THANK YOU