danish distribution

8/7/2019 danish distribution

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TEAM MEMBERS- CHARANJYOTIKANEHARAHUL

SUYASH


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A set of interdependent organizations(intermediaries) involved in the

process of making a product orservice available for use orconsumption.

Channel decisions affect other marketing decisions involve long-term commitments


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Pull Strategy

The manufacturer uses itssales force and trade

promotion money to

induce intermediaries to

carry, promote, and sell

the product to end users. -low brand loyalty

-product benefit well

understood

Push Strategy

the manufacturedusing advertising andsales promotion toinduce consumers toask for the product.

-High brand loyalty -High involvement


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- Physical distribution: Moving tangibleproducts through distribution channels

- Physical distribution (or logistics)consists of all activities involved inmoving the right amount of the right

products to the right place at the righttime.


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- Physical distribution refers to the actual physical flow ofproducts

- In contrast, physical distribution management is the

development and operation of processes resulting in theeffective and efficient physical flow of products

- Effective physical distribution management requirescareful attention to five interrelated activities:

1. Order processing2. Inventory control

3. Inventory location and warehousing

4. Materials handling


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- The starting point in a physical distribution system is orderprocessing, which is a set of procedures for receiving,handling, and filling orders promptly and accurately

- Electronic data interchange (EDI):

- Between customer and supplier orders, invoices, andother business functions are transmitted by computer

- Originally, EDI required a direct computer link betweensupplier and customer, now it is being conducted via theInternet

- EDI can trim the cost of order processing significantly,which in turn may reduce purchase prices


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- The goal of inventory control is to satisfy the order-fulfillment expectations of customers while minimizingboth the investment and fluctuations in inventories

- Just-in-Time:

- JIT combines inventory control, purchasing, andproduction scheduling

- Applying JIT, a firm buys in small quantities that arrivejust in time for production and then it produces inquantities just in time for sale


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- Management must make critical decisionsabout the size, location, and transportation of

inventories- These areas are interrelated, often in complex

ways

- One key consideration in managing inventories

is warehousing, which embraces a range offunctions, such as assembling, dividing, andstoring products and preparing them forreshipping


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- Selecting the proper equipment to physicallyhandle products, including the warehousebuilding itself, is the materials handling

subsystem of physical distribution management

- Equipment that is well matched to the task canminimize losses from breakage, spoilage, and

theft

- Efficient equipment can reduce handling costs aswell as time required for handling


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Intermediaries- (middlemen): People involved

in sales transactions that move products fromthe manufacturer to the final user.

Reduces number of contacts required to

reach the final user


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Businesses that buy large quantities of goodsfrom manufacturers, store the goods, and thenresell them to other businesses.

Take title to goods they buy for resale.

wholesalers who manage inventory andmerchandising for retailers by counting stock,filling it in when needed and maintaining storedisplays.

own the goods they sell but do not physicallyhandle the actual products.


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Sell goods to final consumer for personal use.

sell goods to the customer from their own physical stores.

Buy products from manufacturers or wholesalers.

Non-store retailers

Takes title for goods.

E-tailing-online retailing; selling products over the Internet


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Non integrated integrated

direct

indirect

horizontalvertical


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Zero level/direct marketing:

manufacturer consumer

Selling products at the production siteHaving a sales force call on consumersUsing catalogs or ads to generate salesUsing telemarketingUsing the internet to make online sales


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manufacturer retailer consumer


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manufacturer wholesaler retailer

consumer

Most commonly used for staplegoods, which are items that are

always carried in stock and whosestyles do not change frequently


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manufacturer wholesaler jobber retailer

consumer


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ALL the channel members act as partof a Unified system in one of themowing the other so have the power tomake them all cooperate.

Three types of VMS: Corporate,administered, contractual


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Corporate vms: stages from production todistribution are combine under singleownership.

Administrative vms: coordinates stages ofproduction and distribution through size npower of one member.

Contractual vms: consist of independentfirms at different level of production anddistr.


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2 or more unrelated cos

together their resources or programs toexploit an emerging market opportunity

E.G.

Supermarkets have arrangements with local banksto offer in store banking Tie-up b/w TVS whirlpool,onida to market washing

machines


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A system in which a producer uses more thanone channel of distribution.

Producers use their own retail stores as wellas sell through other wholesalers andretailers are known as multichannel retailers.

Multichannel retailers are also calledMerchandising Conglomerates.


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Cutting costs;

Developing deeper relationships with customers;

Increasing sales;

Reducing risks.


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Mail order is a term which describes thebuying of goods or services by maildelivery.

The buyer places an order for the desiredproducts with the merchant using someremote methods such as telephone call orweb site.

Finally the products are delivered to thecustomer to their given address.


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Transport or transportation is themovement of people and goods from one

location to another. Transport is performed by modes, such

as air, rail, road, water, cable, pipeline

and space.

The field can be divided intoinfrastructure, vehicles, and operations.


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A warehouse is a commercial building forstorage of goods.

Warehouses are used by manufacturers,importers, exporters, wholesalers, transportbusinesses, customs, etc.

They usually have loading docks to load andunload goods from trucks.

Sometimes warehouses load and unload goodsdirectly from railways, airports, or seaports.


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"We want to be the Hindustan Lever of the Indian beverage business." - Sanjeev Gupta, Deputy President,

Coca-Cola India in May 2002.


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The rural marketing initiatives undertakenby the cola major - Coca Cola in India.

The changes brought about by Coca Colain distribution, pricing and advertising tomake inroads into rural India.

The concept of rural marketing and itscharacteristics in a developing country likeIndia.


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Tapori-0.wmv


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Rural 75% population engaged in

agriculture related activity.

According to industry estimates that70% of population engaged inagricultural activity..


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Physical Distribution

Channel Management

Promotion and MarketingCommunication


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In 2002, CCI launched a new advertisementcampaign: Featuring Bollywood star Aamir Khan.

Tagline Thanda matlab Coca-Cola Targeted at rural, semi urban customers.

Idea was to position Coca-Cola as a generic

brand for cold drinks.

CCI began focusing on the rural market inthe early 2000s in order to increase volumes.


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Flat sales in urban markets.

Huge size of untapped rural market.

Improvement in income and spending power ofrural people.

Better physical distribution channel. Aspirations for urban lifestyle.

Increased awareness due to television reach.


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3 AS of marketing.

AVAILABILITY

AFFORDABILITY

ACCEPTABILITY


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Focused on strengthening its distributionnetwork

Capacity expansion 25 prod. lines anddoubled bottle capacity.

Unique and different distribution strategy hub & spoke distribution.

Coverage of 1,58,342 villages by Aug. 2003(81,383 in 2001).

2,00,000 refrigerators to rural retailers.


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BOTTLING PLANT

HUBS

SPOKES

RETAILERS RETAILERS RETAILERS


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In 2001, a Survey revealed that 300 ml bottleswere not popular with rural and semi-urbanresidents.

a) Two persons often shared a 300 ml bottle.b) Price of Rs 10 considered very high.

In 2002,CCI launched 200 ml bottles priced atRs 5, named chota coke.a) So that the product is affordable for ruralconsumer.b)The price of Rs 5 also made it competitiveagainst local brands.


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To make the product acceptable ,CCI utilizedextensive marketing in the mass media as well asthrough outdoor advertising.

MASS MEDIA Launched television commercials targeted at rural

consumers.

Increased its ad spend on Doordarshan to reach

more rural consumers. In 2002, with the launch of chota coke, it bought

out commercial featuring Aamir khan ,which wasshot in rural settings.


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In 2003, CCI came up with new commercial featuringAamir Khan, to further strengthen Coca-Colas brandimage among rural consumers.

Commercial aimed at making Coke a generic name forThanda.

Between March and September 2003,CCI launched threecommercials with the tagline thanda matlab coca-cola.

The three commercials succeeded in associating coke withthanda as well as connected rural consumers with coke.

CCI also launched print advertisements in severel regionalnewspapers.


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Hoardings in villages

Painted the name coca-cola on the compoundsof residences in villages.

Participated in weekly mandies, annual haats

and fairs which are major source of businessin rural India.


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CCIs volume from rural market increasedto 35% in 2003.

Focus on rural penetration. Target of reaching 0.1 million more

villages.

Biggest challenge is to increase themarket share.

Diversification nimbu pani, fruit juice.


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