THE RETAIL DISTRIBUTION CHANNEL danish..

THE RETAIL DISTRIBUTION CHANNEL:

THE RETAIL DISTRIBUTION CHANNEL Danish Husnain Minhas Mehran Farooq Abbasi Presented by :

DISTRIBUTION :

DISTRIBUTION Definition: Distribution is the process of moving a product from its manufacturing source to its customers.

CHANNEL:

CHANNEL Definition: A path or link through which non control information passes between two devices.

DISTRIBUTION CHANNEL OR MARKETING CHANNEL:

DISTRIBUTION CHANNEL OR MARKETING CHANNEL In addition to a supply chain, manufacturers and retailers participate in another give and take relationship known as a distribution channel or marketing channel .

In this presentation, we will discuss about.:

In this presentation, we will discuss about. The members of a distribution channel and their functions How retailers fit into distribution channels How channel relationships are managed Strategic alliances

PARTICIPANTS IN THE DISTRIBUTION CHANNEL:

PARTICIPANTS IN THE DISTRIBUTION CHANNEL Retailers Wholesalers Agents and Brokers

Retailers:

Retailers The characteristic that sets a retailer, Ownership. Pricing philosophy. Product assortment. Service level.

Wholesalers:

Wholesalers Wholesalers are intermediaries or middlemen who buy products from manufacturers and resell them to the retailers. The term “wholesale” is often used to describe discount retailer. And in B2B channels, wholesalers may be called distributors. They take the same types of financial risks as retailers, since they purchase …..

Agents and Brokers:

Agents and Brokers Agent: An individual or firm authorized to action on behalf of another

The Need for Distribution Channels:

The Need for Distribution Channels

TYPES OF CHANNELS :

TYPES OF CHANNELS Direct channel. Retailer channel. Wholesaler channel. Agent or broker channel.

Direct channel. :

Direct channel. This is when the same company that manufactures a product sells it directly to the consumer or end user.

Retailer channel. :

Retailer channel. This is when the producer sells to the retailer………. and the retailer sells to the consumer.

Wholesaler channel.:

Wholesaler channel. Intermediaries play a role here, as the manufacturer sells to a wholesaler . . . who sells to a retailer . . . who sells to the consumer.

Agent or broker channel.:

Agent or broker channel. The most complex arrangement involves several transactions, often because the merchandise is being imported. The producer sells to an agent . . . who sells to a wholesaler . . . who sells to a retailer. . . who finally sells to the consumer or end user.

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There characteristics are as follows: The products themselves. The type of customer. Market size. The producer’s level of control. The size of the producing company. How Channels Are Chosen

Types of Distribution within Channels :

Types of Distribution within Channels Intensive distribution Selective distribution Exclusive distribution

1. Intensive Distribution Strategy:

1. Intensive Distribution Strategy This technique is suitable for products or goods of daily necessity that has demand and high levels of consumption. Examples are foods, cigarettes, soap, Drinks etc

2. Selective Distribution Strategy :

2. Selective Distribution Strategy Selective distribution is a distribution method of distributing products or services in a particular market area by selecting only a few distributors or retailers in a region.

3. Exclusive Distribution Strategy :

3. Exclusive Distribution Strategy Exclusive distribution types are goods with high quality and price with a limited number of consumers. Examples are Car showroom factory outlet Restaurant franchise and others.

Channel Relationships:

Channel Relationships

Strategic Alliances:

Strategic Alliances An arrangement between two companies who have decided to share resources in a specific project.