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Channel Distribution at P & G

P&G uses an intensive distribution system to widely distribute its fast-moving consumer goods through multiple retail channels like supermarkets, convenience stores, and discount stores. It streamlines distributors and invests in a more agile distribution network to optimize inventory. For Pantene products manufactured in India, the distribution channel includes carrying and forwarding agents, distributors, and retailers to reach end customers.

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Stuti Maheshwari
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217 views2 pages

Channel Distribution at P & G

P&G uses an intensive distribution system to widely distribute its fast-moving consumer goods through multiple retail channels like supermarkets, convenience stores, and discount stores. It streamlines distributors and invests in a more agile distribution network to optimize inventory. For Pantene products manufactured in India, the distribution channel includes carrying and forwarding agents, distributors, and retailers to reach end customers.

Uploaded by

Stuti Maheshwari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Channel Distribution at P & G:

P&G effectively uses the channels of distribution to run its operations, and has established

powerful distribution network, which includes manufacturing firms, distributors, retailers,

consumers, and so on.

These channel members are able to make a marketplace more cost-effective and efficient. Hence,

the products of P&G are distributed intensively and widely. They are sold in many kinds of

stores, such as supermarkets, convenience stores and discount stores, etc. It is an Intensive

distribution system. Moreover, as fast-moving consumer goods are regard as low-cost items so

that they are typically purchased impulsively and frequently. Hence, the products need to be

widely available to customers in order to stimulate sales.

 The company uses its absolute control power to design more effective distribution

channels.

 It streamlines the number of distributors so that making the distributors is more stable and

competitive.

 P&G Company is investing in a more agile and faster distribution network to optimize

inventory and reduce out-of-stocks.

 It reasonably allocates resources across channel options.

 It is also investing in its sales force to establish more profitable distribution system

(Annual Report of P&G, 2016)

 In India: General office in Mumbai and manufacturing facilities in five areas (Baddi,

Bhiwadi, Goa, Hyderabad, Bhopal).


 Intensive Distribution:

 P&G follows this strategy in India. As the company manufactures FMCG

convenience/necessity goods, hence there is lesser/no brand loyalty from

customer side.

 These products are typically purchased impulsively and frequently and required to

be widely available to customers. The distribution network of the company needs

to be very strong and proactive.

 As the products are relatively small and easily transported, they are easy to box

up a great number of units to many different channel intermediaries.

Pantene Distribution Channel:

In India, from manufacturing plants of Pantene like in Mandideep (MP) and Baddi (Himachal

Pradesh), the products go the Carry and Forwarding agents ,then to the distributers and then to

retailers/wholesalers and finally reaching the end customers.

Company

C&F

Distributers

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