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          Brand : Reynolds
       GROUP 11
       SECTION B
       IIM Indore
Contents
1       Channel Levels


2      Super Stockists


3        C & F Agents


4           Dealers


5   Attracting channel members


6           Write Site


7         Way Forward
Channel Levels
Super Stockist

    Intermediary between
   manufacturer and market


     Commission: 3.5%
    Effective margin: 2%



   Initial investment required



       Act as service points
Carry & Forwarding Agent
DEALERS


     Selection           Competitor            Channel
      criteria            network            segregation


                                              To improve
     For small       Rotomac, Cello:
                                                product
 towns: depending     operate through         penetration
  on counter sales    wholesale basis
   of the owner in     giving complete       Only at Indore
       the same           margins to          on trial basis
       business          wholesalers
                                                 Helps in
   Main towns:        Do not have an
                                            reducing inventory
  FMCG distributor         extensive          levels and lead
                     distribution network          times

Extensive distribution network



                                                    Company Logo
Attracting
                                 channel
                                members


                                                    Trade promotions
Trade margins
                                                    Primary- dealer
6% fixed for                                       incentive of 1.5% of
dealers                   Institutional sales       quarterly value sales

20% approx for         Usually through dealers
                                                    Secondary- seasonal
retailers and                                       schemes for retailers and
                            Dealers and ASM
wholesalers                                         distributors
                         receive pricing supports
                                 BUT
                            for specific deals


                        Conditions of sale
                Cash and carry policy
                Bottom line


                                                                 Company Logo
Some Interesting Facts
                      It recovered its fixed
                           costs earlier
                      Still making a profit




                            No increment
                             in product
  Brand                        prices
loyalty of                                               Unique
Reynolds     25% growth
             without any                                 concept
Segmen                                    Write site   specific to
              aggressive
t growing     marketing                                 Reynolds
 by 15%-
   20%
 annually


                                                        Company Logo
WRITE SITE
        EXCLUSIVITY OF REYNOLDS
        STORE
 An exclusive showroom for
  writing instruments

 Showcases a range of global
  products from Sanford and
  Reynolds, in a smart yet easy
  ambience

 Get to touch, feel and choose
  from a wide range of
  products in a relaxed and
  trendy atmosphere
WRITE SITE




             Company Logo
Way forward
LOGO




       Group 11, Section B

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Reynolds Distribution Channels- India

  • 1. LOGO Brand : Reynolds GROUP 11 SECTION B IIM Indore
  • 2. Contents 1 Channel Levels 2 Super Stockists 3 C & F Agents 4 Dealers 5 Attracting channel members 6 Write Site 7 Way Forward
  • 4. Super Stockist Intermediary between manufacturer and market Commission: 3.5% Effective margin: 2% Initial investment required Act as service points
  • 6. DEALERS Selection Competitor Channel criteria network segregation To improve For small Rotomac, Cello: product towns: depending operate through penetration on counter sales wholesale basis of the owner in giving complete Only at Indore the same margins to on trial basis business wholesalers Helps in Main towns: Do not have an reducing inventory FMCG distributor extensive levels and lead distribution network times Extensive distribution network Company Logo
  • 7. Attracting channel members Trade promotions Trade margins Primary- dealer 6% fixed for incentive of 1.5% of dealers Institutional sales quarterly value sales 20% approx for Usually through dealers Secondary- seasonal retailers and schemes for retailers and Dealers and ASM wholesalers distributors receive pricing supports BUT for specific deals Conditions of sale Cash and carry policy Bottom line Company Logo
  • 8. Some Interesting Facts It recovered its fixed costs earlier Still making a profit No increment in product Brand prices loyalty of Unique Reynolds 25% growth without any concept Segmen Write site specific to aggressive t growing marketing Reynolds by 15%- 20% annually Company Logo
  • 9. WRITE SITE EXCLUSIVITY OF REYNOLDS STORE  An exclusive showroom for writing instruments  Showcases a range of global products from Sanford and Reynolds, in a smart yet easy ambience  Get to touch, feel and choose from a wide range of products in a relaxed and trendy atmosphere
  • 10. WRITE SITE Company Logo
  • 12. LOGO Group 11, Section B