Chapter 7 Distribution

Distribution is making the product a available but this availability should sensure that product must be At right place At right time In right condition If there is any deficiency in any of there basic elements of distribution, there future of product would be uncertain. Distribution in such an activity which divides the fate of the product and manufacturer becomes a success store or fades into obscurity. This is also taking decision 3rd P of marketing mix.

Distribution Channel Distribution channel of all the people and organizations which are involved in the physical distribution of goods selection of proper distribution channel is very important aspect because if the decision is made with care and channel is managed efficiently, companies can save high costs and can generate profits. But for this, cooperation of channel members is very much imported.

Distribution Channel Used By Walls Distribution channel used by walls is very short and this is due to perishable nature of the product. It can be shown by following sketch.

Street Vendors

Manufacturer On the part of manufacturer there are two components of the channel 1. 2. Factory Warehouse

1. Factory there are two factories of walls one is in Hub, Karachi and 2nd is in Manga Mandi Lahore. For the purpose of distribution for the factories walls has divided the whole area of Pakistan in two regions. 1. 2. North Region Southern region

Northern Region

Northern region is covered by Lahore factory which includes the areas of Punjab and NWFP.

Southern Region Southern region is concerned by Karachi factory which includes Sindh and most areas of Baluchistan.

Warehouses Walls has its warehouse in every major city. There is a warehouse In central locality which covers not only the central locality which is the major city but also near the villages and towns. From warehouse there are three ways to reach the consumer. Distributor Retailers Direct selling

Distributors Distributor take supplies from warehouse and distribute it through strikes. Use of trickes is a very innovative idea in the distribution of ice-cream. This reminds us the time of ice cream man who used to come in mohallas, but there is a difference between that ice cream man and walls give consistent quality and safe products. Now there tricks have become the sign of welcome gesture of Pakistan. There trikes are provided by walls to the distributor who their manages all the operations related to three trikes. Vendors on there trikes are given a commission of 7%. The routes of these trikes are fixed by the marketing department. One area is covered only by one trike and no under can go trike and no under can go into the are of other under. Every under from town, the vain area of his duty, is supposed to cover the near by village are on any one day of the week. The idea of trikes has generated a lot of jobs for unskilled people.

Retailers Throughout Pakistan, there is a retailer base of approximately 30,000 however in case of ice cream, the number of retailers is about a third. The manufacturer retailer relations begins when the ice cream manufacturer gives the retailer a freezer to stock the companys ice cream. This is the biggest incentive to them and make their honor brand to ensure that the freezer is stocked only with that particular manufacturers ice cream.

A margin of 18% is given to the retailers because apart from good profits provisions of the running cost of freezer is also adjusted which is to be paid by retailer.

Direct Selling Direct selling is done in two ways. By using sales force Ice cream parlors.

By Using Sales Force Walls also has a very well trained sales force. This sales force include only HBAS from removed institutions did they perused only major clients. Like restaurants etc.

Extensive Distributions One of the major reasons of early success and clean sweep given by walls is its availability which is ensured through extensive distribution. There is not even a single city in the country where you dont see a walls refrigerator on shop or hear the sweet tone of the tricycle. Walls has tried its best to ensure the availability of the product as close to the customers as possible and walls is very much successful in this.

Distribution Strategies There are two main distribution strategies which are Pull strategy Push strategy Walls have very effectively used both of there strategies and its distribution plan has elements of both of them.

Push Strategy Features of push strategy include incentives like free deep freezers, discounts on bulk purchases and eligibility for schemes such as free camera tickets based on specific columns of ice creams sole.

Pull Strategy Pull strategy is supported by advertising campaign that reminds and persuades customers to buy ice cream. This is facilitated by price off which are frequently offered by the company. Product Life Cycle (PLC)