DISTRIBUTION RESEARCH PRESENTED BY:- MAHESH KUMAR SHARMA
Distribution ResearchDistribution decisions based on thenumber and location of salespersons, retailoutlets, warehouses, and the size ofdiscount to be offered(determined by whatis being offered by existing or similarproducts).
Warehouses and Retail Location ResearchWhat costs and delivery times would result if wechoose one location over another?Ans. Simulation of scenarios. can be a simple, paper-pencil exercise fora limited geographic area. can be a complex, computerizedsimulation for a regional or national market.
Center-of-Gravity Simulation It is used to locate a single warehouse or retail site. Minimize the distance to customers.
Computerized SimulationModels Designed to determining how many warehouses should be used and where they should be located. Required to work on multiple warehouse location problems.
Trade Area Analysis It helps in creating mailing lists, evaluating a store’s or shopping center’s market positioning, measuring competitive customer bases, determining the potential of new location. Also helps to evaluating regional retail chains and acquisition plans.
Outlet Location Research It deals with individual companies, chains, financial institutions with multiple outlets etc. Two general methods:- 1) Analogous location method:- involves plotting the area surroundings the potential site. 2) Multiple regression models:- can be used to generate a relationship between store sales and a range of store, population and competitor characteristics.
Number and Location of SalesRepresentatives How many sales representatives should there be in a given territory? Three general research methods 1) Sales Effort Approach:- Applicable when the product line is first introduced. 2) statistical analysis of sales data:-can be used after the sales program is under way. 3) Field Experiments:- also applicable only after the sales program has begun.