Presented by: Apoorwa Uttekar D 19 Monica Pawar D 18 Kanika Sinha D 22 Shagun Kanwar D 17 Aanchal Gupta D 20

APOORWA UTTEKAR
D-19

MARKETING CHANNELS
If the channels are inefficient and expensive, it can be difficult for a company to locate customers for its products & to make a profit on sales of its products.

More steps in the marketing channels, the higher the end cost is to the consumer.

CASE STUDY

 uses a broad array of distribution channels mostly sells through independent wholesale distributors, although direct retail sales are now gaining ground in some areas Trucks - national distribution bicycles & vans - local level

Coca-Cola uses independently owned distributors, called the Micro Distribution Center, for delivery to small retailers.

Case study (contd..)

Coca-Colas reach - variety of sales outlets, restaurants, bars, supermarkets towns, and small retail kiosks in rural areas In many markets , it outsources its warehousing and transportation operations to third-party companies

Coca-Cola also spends time trying to understand the revenue and profit mix of each of its retailers

Incentive Structures and Risk-Reward Sharing Wholesale distributors

offer financial incentives to improve reach and sales in each outlet Monetary trade incentives are provided to wholesale distributors to increase the number of retail outlets

Retail partners
provides refrigerators at a 50% discount offers a few dozen crates of free product for accomplishing a preset sales target.

Distribution Structure
Area wise distribution & promotion schemes Focus on high traffic locations
Railway stations Bus stand

Coke India distributes using 2 routes

Direct Indirect
Direct Route Market

Plant

Warehouse Indirect Route Distributor Market

Direct

Manufacturing Plant

COBO

On Order & Ready Stock

Primary Company Owned Depot

FIFO
3 Day Inventory

Secondary Retailers
(Diamond / Gold / Bronze)

Home Delivery Agent

Tertiary Customers

Manufacturing Plant

FOBO

Indirect
Secondary Distributors cover: 500-600 outlets

Distributors
Secondary Retailers
(Diamond / Gold / Bronze)

Requirements to become distributor:

Capacity to hold 5 days stock FDA license Shop establishment certificate Electricity bill Address proof Bank statement

Tertiary
Customers

Problems faced by distributor

From company : discounts/incentives given at the end of the month From retailer : bad debts/run away

HYBRID MARKETING Channels

MONICA PAWAR D-18

HYBRID MARKETING CHANNELS

Hybrid Marketing Channels is when as the amount of competition rises and costs become very crucial, companies that once went to market only through one way are adding new channels. Thus, using new methods creates a hybrid marketing system. Advantage : promise of great coverage and reduced costs. Disadvantage: Creates a channel where it is difficult to manage, raises questions of conflict and control

Case:
From direct to hybrid marketing: a new IBM go-tomarket model

IBM wants to promote a solution provided by Star Ltd (a small software house with very limited territory coverage) which uses IBM hardware and base software

IBM's direct marketing tools

The hybrid go-to-market model

It is hybrid type of go-to-market model where the marketing, the direct marketing, the SRs, the business partners, and the technical-commercial supports do not act in the marketing/sale process from end-to-end, but they simultaneously and consistently participate at the same sale negotiations.

Stage 1

IBM Marketing in collaboration with Star srl: defines the market solution and designs the promotional material for Stage 2 mailing; arranges agreement terms IBM direct marketing: and conditions with other sets up promotional material IBM business partners. and references to the customer; handles mailing; makes telephone c alls and gives priority to mail or fax requests for information; sends information to the customers.

Stages 3 and 4

The business partner: visits the prospect and sets up the negotiations; concludes the negotiations and signs the contract; co-ordinates the supply of the single components which are part of the solution.
Stage 5

Stage 6

The business partner: implements the solution provides the necessary services; tests the whole solution.

IBM and the business partner: supply hardware and software, installation services and perform relative testing.

Stage 7

co-ordinates corrective actions

verifies customer satisfaction

IBM direct marketing

periodically contacts the customers to verify their satisfaction

verify their satisfaction and new needs

This way, market coverage is more capillary and business opportunities with real benefits for all the members of the network are more easily grasped.

Conclusions
IBM direct marketing, which is a compromise between sales cost reduction, market coverage improvement and regaining control of external channels, has evolved from its traditional role as a pure selling channel to an innovative marketing tool capable of activating and coordinating business partner activities. The hybrid model, which combines direct marketing and business partners, is a very promising way of approaching the market.

Starbucks wishes to maintain the quality of its coffee by working back up the supply chain

Starbucks uses multiple channels(HYBRID) of distribution for its products

The company attains its supplies from the actual coffee growers, and thus, effectively bypassing much of the middle market and saving a sufficient amount of funds.

Firstly Starbucks sells its products through a direct retail system in company-owned stores

They import and process coffee and then sell it under their own brand name in their own stores.

Starbucks also sells its products in supermarkets and shopping centres. Starbucks has distribution agreements with office coffee suppliers, hotels, and airlines

Using multiple distribution channels allows the company to reach a wider market

By the end of 2000, Dells revenues had topped an astounding $25 billion due to the implementation of a novel DISTRIBUTION channel strategy

Eliminated middlemen and customers could custom design their PCs

Sold directly to customers through telephone and internet rather than through retailers

Competitors like HP Failure to sell to customer market Shift in customer preferences to buy from retail stores

Poor customer service

Poor R&D

Strategies For Distribution

Shagun Kanwar D - 17

Severely limiting number of intermediaries

EXCLUSIVE DISTRIBUTION

Small number of retail outlets

SELECTIVE DISTRIBUTION

Full utilization of intermediaries

INTENSIVE DISTRIBUTION

Live, Breathe Wear Passion - Diesel Case Study

The way a business chooses to offer its products to its customers has a huge impact on its success. Only around 300 of the 5,000 global outlets which sell Diesel products are owned and managed by the company itself. Strong Culture Be Stupid Campaign Mix of exclusive and selective distribution over intensive distribution.

E-Commerce Marketing Practices

Aanchal Gupta D 20

Pure-Click Companies

Started as the worlds largest bookstore in July 1995 Virtual bookstore Personalized storefronts Electronic marketplace

Search inside the book feature Diversification in product lines

Separate website for different countries

Worlds largest B2B marketplace

Brick-and-Click Companies

Indias largest retailer

To reach out to its customers and provide them a convenient shopping experience, it took initiative of web marketing & sales through futurebazaar.com

Dhruv Bhatia D - 21

History Overview
1962: Walton Brothers opened first Walmart in Arkansas 1970: Walmart became public 1990: 1st National retailer 1991: International Expansion 1993: Creation of Great Value 2008: Largest corporation in the world (Fortune 500) 2012: 50th Anniversary

Mission Statement, Vision, Goals, & Purpose

Mission Statement: To help people save money so they can live better

Goal:

Becoming in an international brand

Vision: If we work together, well lower the cost of living for everyonewell give the world an opportunity to see what its like to save and have a better life.

Advertising slogans: Save Money. Live better

Customer Target
Wal-Mart's targeted demographic:
Modest incomes Shoppers interested in prices

Business Formats
1) Walmart Stores
Walmart Discount Stores 629 in the US Walmart Supercenter: Walmart Discount Stores + Full Service Supermarket. 3,029 in the US. Walmart Market: Previously branded as Walmart Neighborhood Market. 199 in the US.

2) Sams Club. Buy in large quantities. 611 opened in the US.

Walmart in the US

International Expansion
Year 1991 1994 1994 1995 1996 1998 1999 2002 2002 2007 Country Mexico Brazil Canada Argentina China South Korea U.K. Japan Germany India Mode of Entry 50% Joint Venture Cifra 60% Joint Venture Lojas Americana Acquisition Woolco (weak player) Wholly owned Susbidiary New opening, JV, Acquisition Acquisition Acquisition of ASDA Acquisition Seiyu Acquisition of Wertkauf and Spar Joint Venture

2011

Southern African Countries

Acquisition of Massmart Holding Limited

Suppliers
Wal-Mart enjoys a 50 percent market share position in the discount retail industry with its nearly 3,000 suppliers. Though Wal-Mart may have been the top customer for consumer product manufacturers, it deliberately ensured it did not become too dependent on any one supplier. No single vendor constituted more than 4 percent of its overall purchase volume.

Distribution Channels
Saturation Strategy The company owns a fleet of more than 3,000 trucks and 12,000 trailers. The Wal-Mart Way Cross Docking.

 Wal-Marts highly-automated distribution centers, which operate 24 hours a day and are served by Wal-Marts truck fleet, are the foundation of its growth strategy and supply network. In the United States alone, the company has more than 40 regional distribution centers for import flow and more than 140 distribution centers for domestic flow (Logistics, 2011).

Distribution Channels
Walmart introduced Supply Risk Monitoring in 2008 Assess and rank security risk for countries in its global supply chain Risk associated with terrorism, crime, political or regulatory environment Warm of emerging threats and prevent disruption of deliveries of goods around the world.

Key Success Factors

A supply chain with integrated technology An ability to generate large sales volume (economies of scale)

Every Day Low Prices Superior logistics systems Decentralized operations A strong and unique culture (in U.S.)

Each Wal-Mart store should reflect the values of its customers and support the vision they hold for their community. Sam Walton