MJL Bangladesh Limited manages their distribution channel through a combination of direct and indirect channels. They use 62% indirect channels across 24 regions to cover almost all major industries in Bangladesh. For their channel selection criteria, they consider the business age, reputation, financial strength, territory coverage, and market knowledge of potential distributors. They provide incentives to distributors like quick distribution, a quality product line, profitability, and consistent sales support. Potential conflicts with distributors can arise over issues like stocking levels, pricing, and the division of tasks between MJL and distributors.

1. MJL Bangladesh
Limited
How they manage their distribution channel

2. MJL
Banglad
esh
Limited
Formerly
,
Mobil
Jamuna
Lubrican
ts
Banglad
esh
Establi
shed.
1998
It produces high quality lubricants.
However, in 2003 by the
governments approval
It built a state-of-the-art Lube Oil
Blending Plant (LOBP) - the first of
its kind in the country

3. Distrib
ution
Chann
el
62%
Indirect
Across
24
regions

4. MJL
Cover
almost all
the
industries
including
Agricultur
al,
Aviation
& Marine
Lubricant
, Food &
Beverages
…
Categorie
s
Passenger Vehicle
Lubricants
Commercial Vehicle
Lubricants
Industrial Lubricants
Grease Products

5. Market
Coverage
Channel
Selection
Criteria
Package of
Enticement
Effective
Channel
Mechanism
Questionnaire

6. Whether
Distribut
or Take
Ownershi
p or Not?
Distributors do take
ownership
Retailer &
End user
Distri
butors

7. Market
Covera
ge
Mostly
EXCLUS
IVE but
few
exceptio
ns
Where
they uses
Intensive
Channel.
Depending
on the
area
Requirements
Minimum
Order
Stocking Level
Pricing
Structure
Geograph
ic
Product
Market

8. Channel
Selection
Criteria
Business age of
the candidates
Reputation
Financial strength
Territory coverage
Knowledge Market
Type of market
coverage offered
Channel
Commun
ication
Mechani
sm
Field visits by
manufacturer
personnel
Joint sales calls
Channel advisory
councils
A media
communication
program

9. Package of
EnticementAntes
Quick
distribution
Quality product
Profitability
Pluses
Full product line/
mix
CONSISTENT AND
RESPONSIVE
SALES SUPPORT
PAYMENT TERMS

10. CONFLICT
S
STOCKING LEVEL
DIRECT VS.
INDIRECT
NEW MARKET
DEVELOPMENT
PRICING ISSUE
CHANNEL TASKS TO
BE PERFORMED
SIZES OF PROFIT
MARGIN
TRANSSHIPPING

11. Thank You!