DISTRIBUTION MGT (D.M.) D.M. HAS 2 PARTS : DISTRIBUTION CHANNEL (DC) & PHYSICAL DISTRIBUTION/ MARKETING LOGISTICS (ML)

 DISTRIBUTON CHANNEL (MARKETING CHANNEL/TRADE CHANNEL IS A SET OF INTERDEPENDENT ORGANISATIONS INVOLVED IN THE PROCESS OF MAKING A PRODUCT/SERVICE AVAILABLE FOR USE/ CONSUMPTION.

 

KKH/DM/BU-1

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ML CONSISTS OF DELIVERING COMPLETED PRODUCTS TO CHANNEL INTERMEDIARIES & END USERS / CONSUMERS.

  FUNCTIONS & FLOWS IN MARKETING CHANNELS (A)  MARKETING CHANNEL MEMBERS (E.G. MANUFACTURERS, WHOLESALERS, RETAILERS, BANKS/FIN.INSTITUTIONS, TRANSPORT CARRIERS, ETC) DO ONE OR MORE OF THE FOLLOWING FUNCTONS / TASKS / WORK.

KKH/DM/BU-2

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(i)  PROMOTION: TO COMMUNICATE ABOUT PRODUCTS, TO GENERATE DEMAND/ATTRACT CUSTOMERS. IT INCLUDES ADS,S.P., PERSONAL SELLING, D.M., PUBLICITY.(ii) NEGOTIATION: AGREEMENT BETWEEN A BUYER & A SELLER, SO AS TO TRANSFER OWNERSHIP/POSSESSION.(iii)  PHYSICAL DISTRIBUION: PHYSICAL FLOW/MOVEMENT OF GOODS FROM MANUFACTURER TO FINAL CUSTOMER. IT INCLUDES MANY ACTIVITIES : TRANSPORTATION, INVENTORY MGT., WAREHOUSING, ORDER PROCESSING / CUSTOMER SERVICE, ETC.

KKH/DM/BU-3

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(iv)   INFORMATION : COLLECTING & SPREADING MARKET INFO.I.E. CUSTOMERS, COMPETITORS, ENVIRONMENT.

(v)  FINANCING / CREDIT / PAYMENT: EXTENDING CREDIT TO CUSTOMERS, WHO PAY THEIR BILLS THRU’ BANK / FIN.INSITUTIONS OR DIRECTLY TO SUPPLIERS

(vi)  AFTER – SALES SERVICE: DEPENDING UPON SERVICE/PRODUCT,CUSTOMERS NEED PREVENTIVE MAINTENANCE/REPAIRS DURING/OUTSIDE WARRANTY PERIOD.

(EG: 2 – WHEELERS, GEN. SETS)

KKH/DM/BU-4

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DEPENDING ON WHO CAN DO ABOVE FUNCTIONS EFFICIENTLY, THE MANUFACTURER SHIFTS/SHARES SOME FUNCTIONS WITH INTERMEDIARIES (EG STORAGE/INVEN.CARRING, FINANACING, PROMOTION)

(B)  FLOWS IN MARKETING CHANNEL.A FLOW IS THE MOVEMENT OF FUNCTIONS/TASKS PERFORMED BY CHANNEL MEMBERS, AS SHOWN.

KKH/DM/BU-5

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(i) P R O M O T IO N F L O W / M O V E M E N T

MANUF'ER

(ii) N E G O T IA T IO N F L O W

(iii) P H Y S IC A L F L O W / D IS T R IB U T IO N

KKH/DM/BU-6

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( iv ) T IT L E / O W N E R S H IP F L O W

MANUF'ER

(v ) IN F O R M A T IO N F L O W

(v i) O R D E R IN G F L O W

MANUF'ER

(v ii) P A Y M E N T F L O W

KKH/DM/BU-7

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FLOWS / MOVEMENTS IN CHANNEL ARE GROUPED AS

  (A)  FORWARD FLOWS ARE PROMOTION, PHY.DISTRI’N, & OWNERSHIP/TITLE.

(B)  BACKWARD FLOWS ARE ORDERING & PAYMENT.

  (C)  BOTH DIRECTION FLOWS / MOVEMENTS ARE INFORMATION, NEGOTIATION & FINANCING.

 

KKH/DM/BU-8

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ANALYSING MARKETING CHANNEL STRUCTURES

MARKETING CHANNEL STRUCTURES VARY BY

(1)  CHANNEL LEVELS/CHANNEL LENGTH – WHICH IS BASED ON NUMBER OF INTERMEDIARIES &

(2)  DEGREE OF SPECIALISATION IN FUNCTIONS / FLOWS, AS SHOWN HEREAFTER.

KKH/DM/BU-9

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BASED ON CHANNEL LENGTH/LEVELSDIFFERENT TYPES OF CHANNEL STRUCTURES

MANUF'ER

DIRECTM ARKETINGDIRECT -SELLING(ZERO -INTERM ED-IARIES)

D IR E C TC H A N N E L

ZEROLEVEL

ONELEVEL

TW OLEVELS

THREELEVELS

MANUF'ER MANUF'ER

RETAILER

RETAILER

MANUF'ER

KKH/DM/BU-10

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MULTI CHANNEL MATRIX STRUCTURES(BASED ON SPECILISATION OF FUNCTIONS)

NOTE : INDIRECT CHANNELS ARE TYPICALLY USED FOR CONSUMER MARKETING (EXCEPT B2C) & DIRECT / MATRIX CHANNEL STRUCTURES ARE USED MORE IN INDUSTRIAL MKG.

DIRECTCHANNEL

INDIRECTCHANNEL

MANUFACTURER

KKH/DM/BU-11

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CRITERIA FOR HARMONIOUS RELATIONSHIP

DIVERGENT CONVERGENT

M ISU ND ER STO O DR ELATIO N SH IP

H A RM O N IO U SR ELATIO N SH IP

A C RIM O N IO U SR ELATIO N SH IP

M ISM A N A G EDR ELATIO N SH IP

GOALS

HARMONIOUS RELATIONSHIP EXISTS IF GOALS ARE CONVERGENT (SIMILAR), & THE PROCESS OF DELIVERING SERVICE TO CONSUMERS IS EFFICIENT & EFFECTIVE.

KKH/DM/BU-12

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TYPES OF RELATIONSHIPS IN MARKETING CHANNEL

AD - HOC

ALLIANCERELATIONSHIP

PARTNERINGRELATIONSHIP

TRANSACTIONRELATIONSHIP

COOPERATIVERELATIONSHIP

ON-GOING

KKH/DM/BU-13

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1. WHAT IS RETAILING?

IT IS SELLING GOODS / SERVICES TO FINAL CONSUMERS FOR PERSONAL / FAMILY USE, NOT FOR BUSINESS USE. GOODS / SEVICES MAY BE SOLD IN STORES / SHOPS, STREET, OR CONSUMER’S HOME, BY PERSON, MAIL, PHONE, INTERNET OR VENDING M/C.

KKH/DM/BU-14

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2. IMPORTANCE / ROLE OF RETAILER

* RETAILER IS THE FINAL BUSINESS IN A CHANNEL, THAT LINKS A MANUFACTURER TO CONSUMERS.

* RETAILERS PERFORM IMPORTAN ACTIVITIES THAT INCREASE PRODUCT / SERVICE VALUE BY 20-50% OF FINAL COST OF MERCHANDISE.

RETAILERS ACTIVITIES:

(i) PROVIDING ASSORTMENT,

(ii) BREAKING BULK,

(iii)  HOLDING INVENTORY,

(iv) PROVIDING SERVICES.

KKH/DM/BU-15

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3. RETAIL ENVIRONMENTIT IS CHANGING IN INDIA. EG:

• SHIFT IN CONSUMPTION HABIT OF OVER 1 BILLION PEOPLE (DUE TO TV, LIBERALISED ECONOMY & DEMANDING CONSUMERS)

• USD 2.5 BILLION INVESTMENTS (70,000 # EMPLOYMENT) (IN 10 YRS)

• >1000 LARGE / SMALL WORLD CLASS RETAIL STORES IN INDIA BY 2005.

• MULTI-CULTURAL, SOCIO-ECONOMIC DIFFERENCES (HENCE, PRODUCT-MIX MAY VARY)

• COOKING OIL & VANASPATHI CONSUMPTION IS 1/3 OF RURAL EXPENDITURE ON FMCG PRODUCTS.

• URBAN POPULATION IS 30% OF TOTAL POPULATION.• 50% OF POPULATION < 20 YEARS AGE.• 20% RETAILERS OFFER CREDIT TO CUSTOMERS.• 50% TEA CONSUMED IN RURAL INDIA.

KKH/DM/BU-16

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MAJOR FACTORS AFFECTING RETAILING IN INDIA

        HIGH REAL-ESTATE COSTS.

        ABSURD RENT CONTROL LAWS (EG - MAHDA 1976 ACT).

        HIGH INTEREST COSTS.

        UNPLANNED CITIES.

        CORRUPTION.

        HIGH ELECTRICITY COSTS.

        WEAK CONSUMER LAWS.

KKH/DM/BU-17

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4. RETAIL (ORGN.) STRUCTURES ORGANISATION STRUCTURES DIFFER BASED ON TYPE / SIZE OF THE RETAILER. (i) ORG. STRUCTURE OF A SMALL RETAILER

MARCHANDISE,ADV. & SALE PROMOTION

MGRS / FUNCTIONS

STORES, HRMDISTRIBUTION

MGRS / FUNCTIONS

ACCOUNTANT FIN. CONTROLS

MERCHANDISE MGT FIN. CONTROL

BUYING INVENTORY

RETAIL STRATEGYOWNER - MANAGER

STRATEGIC MGT.RETAIL FORMAT

ORGANISATION STRUCTURE

SELECT LOCATIONS

PRICE PROMOTION

KKH/DM/BU-18

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(ii) ORIGINAL STRUCTURE OF A DEPARTMENT STORE CHAIN

CHAIRMAN / PRESIDENT

V. P . SrMERCHANDISE

MERCHANDISEMGRS

Sr. V. P.STORES

REGN.V.P.

STORES

Sr. V. P.MRKTG

Sr. V. P.HRM

Sr. V. P.FIN

Sr. V. P.PL, DISTSTORES

MGR.ADV.,

SP. EVE -NTS

TRAIN-INGPLAC'TCOM PENSATIONCUST.SERVICE

A/CsEXPNCONTROLINVENT-ORYCONMIS

DISTRIBUTIONMERCHANDISEPLANNINGSTORECONSTRUCTIONBUYERS

STORESMGRS.

KKH/DM/BU-19

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5) RETAIL BASED CHANNEL FORMATS OR TYPES OF RETAILERS(i) CONVENIENCE STORE : CONVENIENTLY LOCATED, SMALL GROCERY STORE HIGH MARGIN, LIMITED DEPTH, BROAD VARIETY, LOW WAITING TIME.(ii)  SPECIALITY STORE : LIMITED NUMBER OF PRODUCT LINE WITH GREAT DEPTH OF SELECTION . PRICES SAME AS DEPARTMENT STORES LOW WAITING TIME.(iii) DEPARTMENT STORE : ORGANISED INTO SEPARATE DEPARTMENTS. FOR DIFFERENT PRODUCTS MERCHANTISE. EG: CLOTHING, FOOD ITEMS, APPLIANCES. WIDE VARIETY OF PRODUCTS WITH MODERATE DEPTH. SPATIAL (SPACE) CONVENIENCE, LOW WAITING TIME.

KKH/DM/BU-20

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(iv)  DISCOUNT STORE : WIDE VARIETY, LESS DEPTH MERCHANTISE, LOW COST LOCATIONS, LESS SERVICE, LOWER (DISCOUNTED) PRICES. TARGET CONSUMERS ARE LOW/MIDDLE INCOME GROUPS. OTHER TYPES OF RETAILERS ARE SUPER STORES (20,000-50,000 SQ.FT), SHOPPING MALLS, SUPER MARKETS (20,000 SQ.FT) SELF-SERVICE FOOD STORES

 

6. SHOPPING BEHAVIOUR(i) SHOPPING NEEDS : MANY PRODUCTS SATISFY (a) FUNCTIONAL / RATIONAL NEEDS, AND/OR(b) PSYCHOLOGICAL / EMOTIONAL NEEDS.

KKH/DM/BU-21

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(ii) TYPES OF BUYING DECISION MAKING :(a)  EXTENDED PROBLEM SOLVING (HIGH RISK & UNCERTAINITY)(b)  LIMITED PROBLEM SOLVING – IMPULSE PURCHASE (MODERATE RISK & UNCERTAINITY)(c)  HABITUAL DECISION MAKING (LOW RISK & UNCERTAINITY)- BRAND LOYALITY, STORE LOYALITY ARE EXAMPLES.

KKH/DM/BU-22

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STEPS / STAGES IN STORE SELECTION & BUYING PROCESSPRE-STOREVISIT

STAGES INBUYING PROCESS

IN-STOREVISIT

(UNSATISFIED)NEED RECOG-NITION

INFORMATIONSEARCH

EVALUATE

CHOICE

NEEDRECOGNI-TION

SEARCHFOR RET--AILERS

EVALUATERETAILERS

SELECT A RETAILER

NEED RECOGNI-TION

SEARCHFOR MER--CHANDISE

EVALUATEMERCHANDISE

SELECTMERCHANIDISE

PURCHASEMERCHANDISE

POST PURCHASEEVALUATION

VISIT THESTORE

KKH/DM/BU-23

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RETAIL PLANNING & STRATEGIES

CONSIST OF FOLLOWING STEPS

(i)  DEFINE BUSINESS MISSION.

(ii) CONDUCT SITUATIONAL AUDIT (SWOT).

(iii) DECIDE OBJECTIVES & GOALS.

(iv) EVOLVE RETAIL STRATEGY.

(v)   DEVELOP FINANCIAL STRATEGY.

(vi)  PREPARE ACTION PLAN (PERT-CPM)

(vii) IMPLEMENTATION & CONTROL.

KKH/DM/BU-24

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RETAIL STRATEGY CONSISTS OF

(a) TARGET MARKET SEGMENTS.

(b) RETAIL FORMAT/RETAIL MARKETING MIX. IT INCLUDES :

(i)  GOODS/SERVICES OFFERED,

(ii)  PRICING,

(iii) PROMOTION,

(iv) STORE LOCATION, DESIGN & VISUAL MERCHANTISE,

(v)  CUSTOMER SERVICE

KKH/DM/BU-25

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(c) SUSTAINABLE COMPETITIVE ADVANTAGE.

CAN BE BUILT BY FOLLOWING AREAS:

(i)    CUSTOMER LOYALTY,

(ii)   LOCATION,

(iii)  VENDOR RELATIONS,

(iv)  MANAGEMENT INFORMATION & DISTRIBUTION SYSTEMS,

(v)   LOW-COST OPERATIONS.

KKH/DM/BU-26

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MERCHANDISE PLAN

RETAILER PLANS

(a)  WHAT TYPE OF MERCHANDISE (GOODS) TO BUY.

THIS DEPENDS ON RETAIL STRATEGY 3. FACTORS ARE RELEVANT :

(i)   VARIETY(BREADTH),

(ii)  ASSORTMENT(DEPTH)

(iii) SERVICE LEVEL

KKH/DM/BU-27

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(c)   HOW MUCH TO BUY.

DEPENDS ON : (i) SALES FORECAST - “TOP DOWN”, “BOTTOM-UP” APPROACH & FORECASTING METHODS.

INVENTORY NET SALES

TURNOVER AVERAGE INVENTORY AT RETAIL

THIS CAN BE CALCULATED ON MONTHLY / QUARTERLY / YEARLY BASIS. RAPID INVENTORY TURNOVER SHOWS FINANCIAL SUCCESS.

(ii)

KKH/DM/BU-28

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PROCUREMENT & DESTRIBUTION

AFTER MERCHANTISE PLAN IS MADE, PROCUREMENT

FOCUSES ON BUYING MERCHANDISE. IT INCLUDES:

(i)       SELECTING VENDORS/SUPPLIERS,

(ii)      MEETING,NEGOTIATING,

(iii)     DEVELOPING RELATIONSHIP.

 

RETAIL DISTRIBUTION / LOGISTICS

IT IS PHYSICAL FLOW OF MERCHANDISE FROM THE

SOURCE OF SUPPLY TO CUSTOMER.

VEN DO R C U STO M ER

KKH/DM/BU-29

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SOME RETAILERS HAVE DISTRIBUTION CENTER TO STORE BUFFER STOCKS, AS COST OF SPACE IS LESS.

IF RETAILER HAS FEW STORES, DIRECT DISTRIBUTION TO STORES IS BETTER.

DISTRIBUTION CENTER ACTIVITIES : TRANSPORTATION, RECEIVING, CHECKING, STORING, MARKING, FILLING ORDERS.

KKH/DM/BU-30

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RETAIL (STORE) MANAGEMENT

INCLUDES THE FOLLOWING:

(i) MANAGING STORE EMPLOYEES : RECRUITING, SELECTING, TRAINING, MOTIVATING, MEASURING & EVALUATING PERFORMANCE,

(ii) MANAGING MERCHANDISE,

(iii) CUSTOMER SERVICE,

(iv)  INVENTORY CONTROL,

(v) STORE PERFORMANCE EVALUATION.

KKH/DM/BU-31

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• PERFORMANCE EVALUATION SYSTEM IS DESIGNED BY H.R. DEPARTMENT, BUT EVALUATION IS DONE BY IMMEDIATE SUPERVISOR.

• SUBJECTIVE & OBJECTIVE CRITERIA SHOULD BE USED.

• BOTH YEARLY/HALF YEARLY REVIEW + FREQUENT APPRAISALS ARE DONE.

KKH/DM/BU-32

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WHOLESAILING (B2B)  IT INCLUDES SELLING PRODUCTS TO

BUSINESSES LIKE RETAILERS, INDUSTRIAL & INSTITUTIONAL USERS, CONTRACTORS & MERCHANTS, BUT NOT TO HOUSEHOLD CONSUMERS.

  WHOLESALER/DISTRIBUTOR SMALL DIFFERENCE IS IGNORED.

  TERMINOLOGIES/TERMS VARY IN INDUSTRY.

 

KKH/DM/BU-33

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IMPORTANCE OF WHOLESAILING

• LARGEST SALES IN WHOLESALE TRADE.

• SALES GROWTH > ECONOMIC GROWTH.

• STEADY GROSS MARGINS.

• PERFORM IMPORTANT TASKS/ FUNCTIONS.

KKH/DM/BU-34

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FUNCTIONS/TASKS PERFORMED BY WHOLESALERS/ DISTRIBUTORS.

• SELLING & PROMOTING.• BUYING & ASSORTMENT BUILDING.• BULK BREAKING.• WAREHOUSING/STORAGE-INVENTORY

HOLDING.• TRANSPORTATION• FINANCING• RISK BEARING.• MARKET INFORMATION.

KKH/DM/BU-35

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STRUCTURE OF WHOLESAILING

KKH/DM/BU-36

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DIFFERENT FORMATS / TYPES OF WHOLESALERS(A) MERCHANT WHOLESALERS, INDEPENDENT BUSINESSES, BY MERCHANDISE, THEY ARE CALLED JOBBERS,DISTRIBUTORS OR MILL SUPPLY HOUSES. TWO CATEGORIES:(i) FULL-SERVICE WHOLESALERS: THEY CARRY STOCK, HAVE A SALES FORCE, OFFER CREDIT, ARRANGE DELIVERIES.

KKH/DM/BU-37

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TWO TYPES OF FULL – SERVICE WHOLESALERS(a) WHOLESALE MERCHANTS SELL TO RETAILERS &GIVE FULL RANGE OF SERVICES.

(b)  INDUSTRIAL DISTRIBUTORS : SELL TO MANUFACTURERS, GIVE SERVICES LIKE STORAGE, CREDIT, DELIVARY.

KKH/DM/BU-38

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FORM A T S /T Y P ES OFW HOLE-S A LERS(W /S )

(B) BROKERS

(D) MANF'S RETAILERS BRANCH O/Fs

(E) MISCELLANEOUS W/S

FULL SERVICE W /S

LIMITED SERVICE W /S

W /S MERCHANTS (SELL TO RETAILERS)

INDUSTRIAL DISTRIBUTORS (SELL TO, BUSINESS CUSTOMERS)

CASH & CARRY W/S. (SELL FMCG TO SMALL RETAILERS FOR CASH)

TRUCK W /S (SELL SEMI PERISHABLES TORETAILERS, HOSPITALES)

DROP SHIPPERS (OPEATE HEAVY EQUIPT)

RACK JOBBERS (SELL TO DRUG / GROCERY RETAILERS)

MAIL ORDER W /S (SPECIALITY FOODS)

PRODUCERS' COOPERATIVES (FARM PRODUCTS)

SELLING AGENT

MANUFACTURER'S REPS. (AGENTS)

PURCHASING AGENT

AGRICULTURAL ASSEMBLERS

PETROLEUM BULK PLANTS / TERMINALS

AUCTION COMPANIES (CARS, EQPTS, OTHER BUSINESSES)

(C) AGENTS

KKH/DM/BU-39

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(ii)  LIMITED SERVICE WHOLESALERS OFFER FEW SERVICES TO SUPPLIERS & CUSTOMERS. FOLLOWING TYPES:

(a)  CASH & CARRY WHOLESALERS HAVE LIMITED FMCG PRODUCTS, SELL TO SMALL RETAILERS FOR CASH.(b) TRUCK WHOLESALERS SELL & DELIVER LIMITED SEMI-PERISHABLE MERCHANDISE TO RETAIL STORES, HOSPITALS, RESTAURANTS(c)  DROP SHIPPERS OPERATE IN BULK INDUSTRIES LIKE HEAVY EQUIPMENT TO SHIP FROM MANUFACTURER TO CUSTOMER.

KKH/DM/BU-40

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(b)  RACK JOBBERS SELL TO GROCERY & DRUG RETAILERS, DELIVER, DISPLAY, BILL FOR GOODS SOLD TO CONSUMERS, KEEP STOCK RECORDS.

(e)  MAIL-ORDER WHOLESALERS.(f)   PRODUCERS CO-OPERATIVES : COLLECT & SELL FARM PRODUCTS.

(B)  BROKERS : BRING BUYERS & SELLERS TOGETHER, NEGOTIATION HELP, COMMISSION PAID BY PARTY WHO HIRED THEM. EX: REAL ESTATE.

KKH/DM/BU-41

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(C)  AGENTS : REPRESENT EITHER BUYERS/SELLERS.(i)   MANUFACTURER’S REPRESENTATIVES / AGENTS,(ii)  SELLING AGENTS(iii) PURCHASING AGENTS(iv)  COMMISSION MERCHANTS.

(D)   MANUFACTURERS’ & RETAILERS’ BRANCH OFFICES(E)    MISCELLANEOUS WHOLESALERS(i)   AGRICULTURAL ASSEMBLERS,(ii)  PETROLEUM BULK PLANTS / TERMINALS,(iii) AUCTION COMPANIES.

KKH/DM/BU-42

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SELECTION & USING WHOLESALERS

  WHOLESALERS ARE USED WHEN THEY ARE MORE EFFECTIVE & EFFICIENT IN PERFORMING IMPORTANT FUNCTIONS/TASKS.

  WHOLESALER INDUSTRY IS VULNERABLE.SELECTION OF WHOLESALERS DEPEND UPON :

(i)  GIVING VALUE-ADDED SERVICES AS PER NEEDS OF MANUFACTURERS & RETAILERS.(ii)  REDUCING COSTS WITH MODERN MATERIAL HANDLING & I.T.(iii) FULFILLING COMMITMENTS (AS PER AGREEMENTS) LIKE SALES VOLUME, TIMELY PAYMENTS & MARKET INFORMATION.

KKH/DM/BU-43

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WHOLESALE STATEGIES

(a) INCREASE PRODUCTIVITY BY BETTER MANAGEMENT OF INVENTORIES & RECEIVABLES.

(b) IMPROVE DECISIONS ON(i)  TARGET MARKET & RELATIONSHIP BUILDING.(ii)  SELECT PROFITABLE PRODUCTS & SERVICES.(iii)  NEW PRICING STRATEGIES. (iv)  DEVELOP OVERALL PROMOTION STRTEGY.(v)    DEVELOP AUTOMATED WAREHOUSES & SUPERIOR MIS & ORDER PROCESSING.

KKH/DM/BU-44

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CHANNEL PLANNING

DESIGNING CHANNEL SYSTEM

STEPS ARE :

A. UNDERSTAND SERVICE OUTPUTS NEEDED BY TARGET CUSTOMERS.

B. DECIDE CHANNEL OBJECTIVES & CONSTRAINTS.

C. IDENTIFY MAJOR CHANNEL ALTERNATIVES.

D. EVALUATE CHANNEL ALTERNATIVES & CHOSE A CHANNEL SYSTEM.

KKH/DM/BU-45

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(A)  UNDERSTAND SERVICE OUTPUTS NEEDED BY TARGET CUSTOMERS

SOME OF THE SERVICE OUTPUTS ARE :

(i) LOT SIZE,

(ii) WAITING TIME,

(iii) SPATIAL (SPACE) CONVENIENCE.

(iv) PRODUCT VARIETY/ASSORTMENT.

(v) SERVICE BACK-UP.

  IF A CHANNEL GIVES MORE SERVICE OUTPUTS, COST & PRICES GO UP. OPPOSITE IS TRUE.

EX: DISCOUNT STORES.

KKH/DM/BU-46

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(B)   DECIDE CHANNEL OBJECTIVES & CONSTRAINTS.

(i)  CHANNEL OBJECTIVES VARY WITH DIFFERENT MARKET SEGMENTS. CHANNEL OBJECTIVES ARE “ TARGETED SERVICE OUTPUT LEVELS”.

(ii) CHANNEL OBJECTIVES VARY WITH PRODUCT CHARACTERISTICS.

(iii) STRENGTHS & WEAKNESSES (CONSTRAINTS) OF DIFFERENT INTERMEDIARIES MUST BE CONSIDERED.

(iv) CONSTRAINTS OF ENVIRONMENT MUST BE CONSIDERED.

KKH/DM/BU-47

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(C) IDENTIFY MAJOR CHANNEL ALTERNATIVES.CONSIDER 3 ELEMENTS OF CHANNEL ALTERNATIVES: (i) TYPES OF INTERMEDIARIES.(ii) NO. OF INTERMEDIARIES : EXCLUSIVE, SELECTIVE, INTENSIVE DISTRIBUTION.(iii) TERMS & RESPONSIBILITIES : PRICE

POLICY, CONDITIONS OF SALE, TERRITORIES RIGHTS, SERVICES & RESPONSIBILITIES.

KKH/DM/BU-48

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(D) EVALUATE MAJOR CHANNEL ALTERNATIVES & SELECT A CHANNEL SYSTEM.

CRITERIA USED FOR EVALUATION :

(i)ECONOMIC CRITERIA. ESTIMATE COST OF SELLING DIFFERENT SALES VOLUME THRU’ EACH CHANNEL.

(ii) CONTROL

(iii) ADAPTIVE CRITERIA. DEGREE OF CONTROL VARIES WITH DIFFERENT CHANNELS. THE MANUFACTURER NEEDS CHANNELS WHICH ADAPT TO CHANGING NEEDS OF MARKETS.

KKH/DM/BU-49

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ORGANISATIONAL PATTERNS IN MARKETING CHANNELS.

TO DELIVER SERVICE OUTPUTS DESIRED BY END-USERS, DIFFERENT CHANNEL SYSTEMS ARE DEVELOPED THESE ARE:(1) CONVENTIONAL (FREE FORM) MARKETING CHANNEL CONSISTS OF INDEPENDENT FIRMS REPRESENTING MANUFACTURER, WHOLESALERS, RETAILERS. EACH SEEKS TO MAXIMISE OWN PROFITS. NO MEMBER HAS CONTROL OVER OTHER CHANNEL MEMBERS. CHANNEL MEMBERS BARGAINED OVER EACH TRANSACTION. THEY WERE UNSTABLE & COULD NOT ACHIEVE ECONOMIES AND SUPERIOR SERVICE.

KKH/DM/BU-50

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(2)VERTICAL INTEGRATION / VERTICAL MARKETING SYSTEM (VMS)TO IMPROVE EFFECTIVENESS & EFFICIENCY OF FREE FORM/CONVENTIONAL MKT. CHANNEL, VERTICAL MARKETING SYSTEM (VMS) HAS EMERGED. IT IS A UNIFIED SYSTEM IN WHICH ONE MEMBER, THE CHANNEL LEADER, OWNS OTHERS OR HAS SO MUCH POWER THAT OTHERS COOPERATE, BEHAVE BETTER, & HAVE LESS CONFLICT. THERE ARE TWO TYPES OF VERTICAL INTEGRATION : (A)“HARD” VERTICAL INTEGRATION

(CORPORATE VMS).(B)“SOFT” VERTICAL INTEGRATION, WHICH INCLUDES

KKH/DM/BU-51

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(B1) ADMINISTERED VMS, & (B2) CONTRACTUAL VMS.

(A)  “HARD” VERTICAL INTEGRATION INCLUDES OWNERSHIP OF THE CHANNEL BY ONE FIRM THRU’ GROWTH/ACQUISITION. THIS STRATEGY IS FOLLOWED BY COMPANIES (EX BATA & CG-TRANF& HTSG) WHEN PRODUCTION AND DISTRIBUTION ARE COMBINED UNDER SINGLE OWNERSHIP.

KKH/DM/BU-52

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KKH/DM/BU-53

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DEGREES OF VERTICAL INTEGRATION & OUTSOURCING.

IN MARKETING CHANNELS, DECISIONS ON “MAKE-OR-BUY” ARE SAME AS VERTICAL (FORWARD) INTEGRATION OR OUTSOURCE.

KKH/DM/BU-54

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OUTSOURCING IS BUYING GOODS / SERVICES FROM OUTSIDE VENDORS.REASONS : (I) LESS COST(II) LESS CAPITAL INVESTMENT,(III) BETTER QUALITY.IN DISTRIBUTION MGT., OUTSOURCING ACTIVITIES INCLUDE INVOICING, SHIPPING, FINANCING, SELLING, WAREHOUSING, ETC.CAUTION : IF A VENDOR GETS KEY INFORMATION, IT CAN BECOME A COMPETITOR.

KKH/DM/BU-55

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ELECTRONIC CHANNELS• IT MEANS REACHING & SELLING

GOODS/SERVICES TO END-USERS ELECTRONICALLY-BY USING THE INTERNET. IT IS SIMILAR TO E-COMMERCE.

• ON – LINE SHOPPING IS THIRD MOST POPULAR ACTIVITY ON THE INTERNET, AFTER E-MAIL & RESEARCHING/ GETTING INFORMATION.

• MARKET POTENTIAL OF E-CHANNELS IS HIGH, ALTHOUGH PRESENTLY SMALL.

KKH/DM/BU-56

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• SOME OF THE PROBLEMS OF E-CHANNEL ARE :

(i)   HOW VAT (VALUE ADDED TAXES) WILL BE COLLECTED FOR ON LINE SALES?

(ii)  ON-LINE-PAYMENTS PROBLEMS.

(iii) DIAL-UP SYSTEM IS SLOW FOR ACCESSING WEB-SITES. OTHER SYSTEMS LIKE ISDN, DSL, CABLE MODEM ARE COSTLY.

KKH/DM/BU-57

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MAJOR REASONS FOR ON-LINE SHOPPING.

   CAN SHOP ANY TIME.

   LESS TIME THAN SHOPPING AT STORES.

   ENJOY ON-LINE SHOPPING & EASY TO SHOP.

   LOWER PRICES, DON’T LIKE CROWD AT RETAIL STORES, PRODUCTS / BRANDS NOT AVAILABLE WHERE THE BUYER LIVE.

KKH/DM/BU-58

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MAJOR REASONS FOR NOT MAKING ON-LINE PURCHASE

    PRODUCT RETURNS DIFFICULT.

    DESIRED PRODUCT NOT AVAILABLE.

    NOT SURE ABOUT TIMELY DELIVERY.

    DON’T WANT TO PAY SHIPPING COSTS.

    ENJOY SHOPPING AT RETAIL STORES.

    TOTAL COST OF BUYING MORE.

KKH/DM/BU-59

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CONFLICTS DUE TO ON-LINE SALESMANUFACTURER SELLING DIRECTLY THRU’ OWN WEB SITES, OR OTHER ON-LINE RESELLER CAN FACE GOAL & DOMAIN RELATED CONFLICTS.

 MANAGING CONFLICTS(i)   SELLING AT LIST PRICE. (WITHOUT DISCOUNTS) (EX. NIKE)(ii)  SELLING DIFFERENT PRODUCTS (EX. P&G).(iii) GIVE CREDIT TO OFF-LINE RETAILERS.(iv) PROMOTE, DON’T SALE.

KKH/DM/BU-60

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CHANNEL MANAGEMENT 1.      CHANNEL CONFLICTS.

2.      CHANNEL POLICIES.

• INTRA CHANNEL CONFLICT MEANS CONFLICTS WITHIN A CHANNEL.

• MULTIPLE CHANNELS HAVE CONFLICTS BETWEEN 2 OR MORE CHANNELS.

KKH/DM/BU-61

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SOURCES/CAUSES OF CONFLICTS.        GOAL DIFFERENCES

        DIFFERING PERCEPTIONS.

        DOMAIN DIFFERENCES.

        GRAY/BLACK MARKETS.

MANAGING CHANNEL CONFLICTS

   SOME CONFLICTS CAN BE CONSTRUCTIVE.

   ASSESS CONFLICT BY INTENSITY, FREQUENCY & IMPORTANCE OF THE ISSUE.

KKH/DM/BU-62

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METHODS FOR MANAGING CONFLICTS

  EXCHANGE OF PERSONS.

  COOPTATION

  ACHIEVING COMMON GOALS.

  DIPLOMACY.

  MEDIATION.

  ARBITRATION.

KKH/DM/BU-63

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2.0. CHANNEL POLICIESPOLICIES ARE MADE TO MANAGE THE CHANNEL & EFFORTS OF MEMBERS.

  POLICIES DISCUSSED ARE:MARKET & CUSTOMER COVERAGE, PRICING & PRODUCT LINE.

 2.1. MARKET COVERAGE POLICIES

 INTENSIVE DISTRIBUTION MAY INCREASE INTRABRAND COMPETITION.

 SELECTIVE & EXCLUSIVE DISTRIBUTION TO MINIMISE INTRABRAND & IMPROVE INTERBRAND COMPETITION & SERVICE OUTPUTS.

 LEGALITY VARIES IN COUNTRIES.

KKH/DM/BU-64

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2.2. CUSTOMER COVERAGE POLICIES WHOM INTERMEDIARIES RESELL PREVENT GRAY MARKETS PREVENT INTRABRAND COMPETITION

2.3. PRICING POLICIES  MANUFACTURER HAS PRICE LIST & DISCOUNT

POLICIES. FOR INTERMEDIARIES COST OF SERVICE OUTPUTS, PROFITS, AND MARKET (COMPETITORS) NORMS ARE CONSIDERED.

  MAXIMUM RETAIL PRICE MAINTAINENCE (RPM) IS ADOPTED.

KKH/DM/BU-65

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   PRICE DISCRIMINATION LEGALLY ALLOWS DIFFERENT PRICES TO DIFFERENT BUYERS, AS FOLLOWS:

(i)    VOLUME DISCOUNT;

(ii)   CUSTOMER SEGMENT PRICING;

(iii)  IMAGE PRICING;

(iv)  LOCATION PRICING;

(v)   TIME PRICING;

      PREDATORY PRICING IS ILLEGAL,

KKH/DM/BU-66

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2.4. PRODUCT LINE POLICIES

(A) EXCLUSIVE DEALING & TERRITORY ARRANGEMENT ARE LEGAL IF SELLER’S MARKET SHARE IS NOT DOMINANT & COMPETITION IS NOT LESSENED SUBSTANTIALLY.(B) TYING AND FORCING FULL PRODUCT

LINE ARE HELD BY COURTS AS ILLEGAL, IF THE ARRANGEMENT LESSONS COMPETITION SUBSTANTIALLY.

KKH/DM/BU-67

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  A PRODUCT MIX CONSISTS OF PRODUCT LINES. EACH PRODUCT LINE MANAGER TO DECIDE WHICH PRODUCT ITEMS TO BUILD, MAINTAIN, HARVEST, OR DIVEST, BASED ON SALES, PROFITS, MARKET PROFILE ANALYSIS.

KKH/DM/BU-68

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CHANNELS INFORMATION SYSTEMS 1.  ELEMENTS OF CHANNEL INF-SYSTEM :

(i)   HARDWARE & NETWORKS.

(ii)  DATABASES.

(A) DATABASE GENERATION.

(B) DATABASE USE.

2. IMPACT ON SERVICE.(i)    SPATIAL (SPACE RELATED) CONVENIENCE.

(ii)   WAITING (DELIVARY) TIME REDUCTION.

(iii)  STOCKING NEEDED PRODUCTS & AVOIDING STOCK-OUTS.

KKH/DM/BU-69

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CUSTOMERS BY USING CHANNEL INFO.SYSTEM. (BY USING DATABASES), FAST MOVING ITEMS ARE ORDERED & SLOW MOVING PRODUCTS ARE DELETED.

3. IMPACT OF INF.SYS. ON CHANNEL FLOW PERFORMANCE

INF.TECHNOLOGY HAS IMPROVED PERFORMANCE OF MAJOR CHANNEL FLOWS, AS SHOWN BELOW. IT HAS INCREASED CONSUMER SATISFACTION & REDUCED COSTS.

KKH/DM/BU-70

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JIT DELIVERIES REDUCE PHYSICAL POSSESSION

INVENTORY NOT HELD FOR LONG TIME

OWNERSHIP FLOWS (MOVEMENTS) REDUCE AT

DISTRIBUTORS / RETAILERS

DISCOUNT COUPONS ARE GENERATED

INSTANTLY AT RETAIL CHECK OUTS

REDUCTION OF PAPER WORK ENABLE BUSINESS BUYERS

SPEND MORE TIME ON NEGOTIATIONS WITH SUPPLIERS

PAPERWORK REDUCED DUE TO ELECTRONIC

PAYMENT SYSTEMS

AUTOMATIC REORDERING MINIMISES HUMAN INVOLVEMENT

POINT - OF - SALE DATA REDUCES INVENTORY,

WITHOUT LOSING SALES

KKH/DM/BU-71

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ASSESSING MARKETING CHANNEL PERFORMANCE1. MEASURING & EVALUATING CHANNEL MEMBERS’ CONTRIBUTION TO CHANNEL PERFORMANCE. THIS IS SAME AS “MARKETING COSTS & PROFITABILITY”,DISCUSSED EARLIER.

THE STEPS ARE :(i)  IDENTIFY CHANNEL ACTIVITIES.(ii) CONVERT NATURAL EXPENSES TO CHANNEL

ACTIVITIES/FUNCTIONS.(iii) ALLOCATE FUNCTIONAL COSTS TO VARIOUS

CHANNELS.(iv) PREPARE P & L FOR EACH CHANNEL.

KKH/DM/BU-72

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2. RESULT OF CHANNEL PERFORMANCE.CHANNEL PERFORMANCE IS ASSESSED BY AUDITING SERVICE QUALITY.THIS IS DONE BY A QUESTIONNAIRE TO MEASURE TARGET CUSTOMERS’ PERCEPTIONS, FOCUSING ON FOLLOWING 5 FACTORS:

(i)    TANGIBLES.(ii)   RELIABILITY.(iii)  REPONSIVENESS.(iv)  ASSURANCE.(v)   EMPATHY.

KKH/DM/BU-73

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MARKETING LOGISTICS

IT IS DELIVERING THE FINAL PRODUCT TO CUSTOMERS & INTERMEDIARIES, AT DESIRED TIME & LOWEST COST. IT IS ALSO CALLED “PHYSICAL DISTRIBUTION”

KKH/DM/BU-74

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IN DEMAND CHAIN MGT: A FIRM FIRST THINKS OF TARGET MARKET & ITS DEMAND, & THEN DESIGNS SUPPLY CHAIN BY WORKING BACKWARD. REPLACE ‘CHAIN’ WORD BY ‘NETWORK’ IS FURTHER IMPROVEMENT.

KKH/DM/BU-75

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MISSION OF LOGISTICS MGT IS TO PLAN & COORDINATE AND INTEGRATE THOSE ACTIVITIES THAT ARE NECESSARY TO SATISFY CUSTOMER NEEDS OF EXCELLENT SERVICE AT LOWEST COST, WITHIN THE ORGANISATION.

KKH/DM/BU-76

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THE SUPPLY CHAIN IS A NETWORK.

KKH/DM/BU-77

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SUPPLY CHAIN MGT (SCM)IT IS A NETWORK OF CONNECTED & INTERDEPENDENT FIRMS COOPERATIVELY WORKING TO CONTROL, MANAGE & IMPROVE FLOW OF MATERIALS & INFORMATION FROM SUPPLIERS TO END USERS.

ACTIVITIES OF SCM ARE DESIGN OF PRODUCT, PLANNING & FORECASTING, PURCHASE, PRODUCTION, ORDER PROCESSING, INVENTORY CONTROL, WAREHOUSING, MATERIAL HANDLING, CUSTOMER SERVICE.

LOGISTICS SCOPE STARTS FROM MGT.OF RAW MATERIAL THRU’ OPERATIONS TO DELIVARY OF FINAL PRODUCT TO CUSTOMERS.

KKH/DM/BU-78

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LOGISTICS & COMPETITIVE STRATEGY.GOALS/COMPETITIVE ADVANTAGE A FIRM WANTS TO ACHIEVE DELIVERING SUPERIOR CUSTOMER SERVICE AT LOWER COST/SUPERIOR CUSTOMER VALUE.

COMPETITIVE STRATEGIES ARE:• PERFORM VALUE CHAIN ACTIVITIES (PORTER’S)

MORE EFFICIENTLY & DIFFERENTLY THAN COMPETITORS..

• USE LOGISTICS CONCEPT (& SCM) TO INTEGRATE DISTRIBUTION, OPERATIONS, PROCUREMENT WITHIN THE FIRM & NETWORK (RELATIONSHIPS) BUILDING WITH SUPPLIERS & CUSTOMERS.

KKH/DM/BU-79

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CUSTOMER SERVICE DIMENSION• IT HAS MANY ELEMENTS WHICH ARE GROUPED IN

3 CATEGORIES:

(i)  PRE-TRANSACTION / PRE-SALES SERVICE.

(ii) TRANSACTION / DURING-SALES SERVICE.

(iii) POST-TRANSACTION / POST-SALES SERVICE.

• SERVICE MUST BE CUSTOMISED, TO SATISFY DIFFERENT NEEDS OF CUSTOMERS.

• “PERFECT ORDER” ACHIEVEMENT CAN BE USED TO MEASURE SERVICE PERFORMANCE & TO SET SERVICE STANDARDS.

KKH/DM/BU-80

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DEVELOPING LOGISTICS ORGANISATION & MANAGEMENT.

1.  HOW TRADITIONAL ORGANISATION PROCESSES A CUSTOMER ORDER. IT IS SEQUENTIAL & TAKES A LONG TIME.

KKH/DM/BU-81

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2.   CONVENTIONAL (VERTICAL) ORG. STRUCTURE IS ON FUNCTIONAL BASIS.

THIS ORG. IS INPUT FOCUSED & BUDGET DRIVEN. IT CANNOT INTEGRATE LOGISTICS MGT.TO ACHIEVE COMPETITIVE ADVANTAGE.

KKH/DM/BU-82

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3.  HENCE, HORIZONTAL ORG.SHOULD BE DEVEOPED WITH FOLLOWING CHARACTERISTICS :

(A) ORGANISE AROUND PROCESSES & NOT TASKS.

(B) HAVE A FLAT ORGANISATION.

(C) BUILT ON MULTI FUNCTIONAL TEAMS.

KKH/DM/BU-83

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(A)   MARKET-BASED PERFORMANCE MEASUREMENT.

FIG. HORIZONTAL ORG. FOCUS

KKH/DM/BU-84

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SOME OF CORE PROCESSES ARE : (i)     CUNSUMER DEVELOPMENT.

(ii)    BRAND MANAGEMENT

(iii)   CRM,

(iv)   CUSTOMER SERVICE

KKH/DM/BU-85

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    THESE PROCESSES ARE BEST MANAGED BY CROSS-FUNCTIONAL TEAMS.

    LEADERS ARE “INTEGRATORS”, WHO FOCUS THE TEAM ON MARKET BASED GOALS.

    REWARD SYSTEM SHOULD CHANGE.    PRODUCTION SHOULD PRODUCE WHAT

IS NEEDED BY MARKET.    FOR MARKET DRIVEN LOGISTICS,

CHANGE FROM VERTICAL TO HORIZONTAL IS IMPORTANT.

KKH/DM/BU-86

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TRANSPORTATION DECISIONS

1.   CAN AFFECT CUSTOMER SATISFACTION.

2.   THEREFORE SELECTION OF RIGHT TRANSPORTATION MODE IS IMPORTANT.

3.   ALTERNATIVES :

RAIL, AIR, TRUCK, WATERWAYS, PIPELINES, RAIL-TRUCK,TRUCK-WATER,RAIL-WATER, AIR TRUCK.

KKH/DM/BU-87

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4.   CRITERIA FOR SELECTION

DEPENDABILITY, AVAILABILITY, SPEED, LOSS / DAMAGE, & COST.

5.   MARKETERS CHOOSE FROM :

   PRIVATE CARRIERS.

  CONTRACT CARRIERS.

  COMMON CARRIERS.

KKH/DM/BU-88

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WAREHOUSING DECISIONS1. EACH FIRM STORES FINISHED PRODUCTS

UNTIL THEY ARE SOLD.

2. PRODUCTION & COMSUMPTION CYCLES DO NOT ALWAYS MATCH.

3. THEREFORE, FIRMS MUST DECIDE :

(i) HOW MANY WARE HOUSES ARE NEEDED .

(ii)THEIR LOCATION.

KKH/DM/BU-89

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4. DECISION DEPENDS ON :

(A)   MARKET COVERAGE,

(B)   CUSTOMER SERVICE LEVEL,

(C)   DISTRIBUTION COSTS.

5. TYPES OF WAREHOUSES AVAILABLE

(i)     PRIVATE (COMPANY OWNED)

(ii)    PUBLIC (LEASED/RENTED)

(iii)  STORAGE (MEDIUM-LONG TERM)

(iv)  DISTRIBUTION CENTRES.

(v)   AUTOMATED.

KKH/DM/BU-90

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INVENTORY MANAGEMENT1. INVESTMENT IN INVENTORY IS HIGHEST,

OUT OF TOTAL INVESTMENT IN ASSETS.2. INVENTORIES ARE HELD AT:

PRODUCTION, DISTRIBUTION, RETAIL LEVELS.

3. INVENTORY COST RISES AT FASTER RATE AS CUSTOMER SERVICE LEVEL COMES CLOSER TO 100%.

4. A FIRM’S OBJECTIVE : SUPERIOR CUSTOMER SERVICE AT LOWER COST.

KKH/DM/BU-91

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5. INVENTORY DECISIONS ARE :

(A)  WHEN TO ORDER?

(B)  HOW MUCH TO ORDER?

KKH/DM/BU-92

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MARKETING LOGISTICS COST AND PERFORMANCE

1. MARKETING LOGISTICS/PHYSICAL DISTRIBUTION (PD) COST, P, IS AS FOLLOWS:

P = F+W+I+LS

F = FREIGHT/TRANSPORTATION COST.

W = WAREHOUSE COST.

I = INVENTORY COST.

LS = COST OF LOST SALES, DUE TO DELAY IN DELIVARY.

KKH/DM/BU-93

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2. TWO APPROACHES FOR PERFORMANCE MEASUREMENT.

(A) MINIMISE TOTAL COST OF P.D. (P).

(B)  RETURN ON INVESTMENTS (ROI).

KKH/DM/BU-94

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MATERIAL HANDLING (M.H.)OBJECTIVES: TO INCREASE USABLE CAPACITY OF THE WAREHOUSE AND TO IMPROVE OPERATING EFFICIENCY.

GUIDELINES/PRINCIPLES OF MATERIAL HANDLING.

• OPTIMISE MATERIALS FLOW.• SIMPLIFY BY REDUCING, ELIMINATING,

COMBINING MOVEMENTS.• USE GRAVITY PRINCIPLE.

KKH/DM/BU-95

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• MAKE OPTIMUM USE OF BUILDING SPACE.

• SELECT RIGHT M.H.EQUIPMENT.

• STANDARDISE M.H. METHODS & SIZES/TYPES OF EQUIPMENT.

• ADOPT SAFETY PRINCIPLE.

KKH/DM/BU-96

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BENCHMARKING1. MEANING : STUDYING “WORLD-CLASS

PERFORMERS” & ADOPTING “BEST PRACTICES”, OR STUDYING “BEST PRACTICE COMPANIES” TO IMPROVE PERFORMANCE.

2. INITIALLY BENCH MARKING WAS FOCUSED ON COMPETITORS, BUT NOW IT IS FOCUSED ON TOP PERFORMING FIRMS, REGARDLESS OF THEIR INDUSTRY.

KKH/DM/BU-97

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3. STEPS INVOLVED IN BENCHMARKING(i)     DECIDE WHICH FUNCTIONS TO BENCHMARK.(ii)    IDENTIFY KEY PERFORMANCE VARIABLES.(iii)  IDENTIFY BEST IN CLASS COMPANIES.(iv)  MEASURE PERFORMANCE OF THESE FIRMS.(v)   MEASURE THE COMPANY’S PERFORMANCE.(vi)  SPECIFY ACTION PLAN TO CLOSE THE GAP.(vii) IMPLEMENT ACTION PLAN.(viii)  MONITOR RESULTS.

FOR SR.NO. (iii), ASK CUSTOMERS, SUPPLIERS, DISTRIBUTORS, MGT. CONSULTING FIRMS.

KKH/DM/BU-98

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