Different types of channel of distribution are as follows. The head office of the company is located in mumbai. Search and upload all types of hul brand product portfolio mix projects for mbas on. A study of consumer acceptance of the internet as a channel of distribution in china was performed using a channel function perspective. What are the factors affecting the choice of a distribution channel. What are the characteristics of marketing channels marketing channels, more commonly referred to as distribution channels, are networks of companies that move products from initial production through sale to the final customer. There are two ways to introduce your company or products in a foreign market. A traditional marketing channel includes a manufacturer that makes products, distributor. A channel of distribution or trade channel is defined as the path or route along which goods move from producers or manufacturers to ultimate consumers or industrial users. An analysis of the strategies adopted shows that trying new scalable distribution channels has gi ven the biggest advantage to hul, while some other competitors did tr y to emulate the strategy. Serving many indias 01 india a land of growing opportunities the indian economy is the bright spot in the global landscape, said the international monetary fund in a recent statement and added that india is now one of the fastestgrowing emerging market economies with a growth rate that is set to accelerate further. Businesses that buy consumer goods or services and sell them to the ultimate consumer. A distribution channel can be very simple, with just two layers producer and consumer. The channel of distribution corresponding to the selected flow and tier is defaulted and cannot be removed.
Designing channels of distribution background note. Voucher receipts can be bought at over 24,000 electronic terminals in paypoint, outlets all over the uk, tens of thousands of locations in usa, canada and over 420,000 electronic terminals throughout the world with other partners. Channel width depends on the intensity strategy chosen by the company. Project shakti business model overview views on news. Do you have a great product you know customers will love. Analysis of distribution networks of fmcg industry. There are five principal categories of channels of distribution channela selling directly to consumers is commonly found in industrial market as against consumer market. Samsung electronics in india challenges of multichannel. Pdf a desi multinational a case study of hindustan. We deliver consistency in underlying sales growth, core operating margin and free cash flow by continuously investing in our supply chain, our brands and marketing, our people and it.
The conventional distribution channel is the most common distribution channel. Introduction formed in 1933 as lever brothers india ltd. A case study of hindustan unilever limited munich personal. Chapter 5 summary and conclusion this chapter is discussed under the following headings. This channel has the highest cost for hotels given the bidding process and the commission structure in place, typically amounting to 15% to 30% of. Pineapple channel distribution by samantha williamson on prezi. When a distribution channel is direct, the manufacturer is selling directly to the end user without a middleman.
Lesson 20 channels of distribution are you aware that the study material of business studies, which is now in your hands, is prepared at the headquarters of the national institute of open schooling nios situated at new delhi. Distribution channels hul retail supply chain management. A channel of distribution is known as marketing channel. The product distribution channels that you use achieve the most fundamental goal. The wine and adult beverage industry is a perfect example of this long distribution. Each layer of marketing intermediaries that performs some work in bringing the product to its final buyer is a. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Distribution channel definition what is distribution channel.
Scaling a costefficient distribution and sales network in remote markets. Educational service agencies and buying cooperatives, published by the education market association, provides an indepth look at two unique distribution channels of interest to school marketers. Understanding online distribution channels by juan duran. When the distribution channel is indirect, the product changes hands several times before reaching the. Synopsis of case this case traces the predicament of samsung electronics for using multiple channels to sell its products. Web channels just as home computers are the most common platform for games for change, the internet is the most common distribution channel. But the purchase may be giving amazon something even more valuable than whole foods customers a distribution network. Channel of distribution and functions of marketing channels. The first channel is the longest because it includes all four. Hindustan unilever distribution strategy management. Ecommerce an online channel of distribution which has now been adapted by almost all retailers.
Pdf hindustan unilever limited a study on the marketing concept. Paths, or routes that goods and services take from the producer to the ultimate consumer or industrial user. Channels of distribution channels of distribution are defined as network of intermediaries capable of linking the producer to the market. Distribution strategy 9 channel strategy channel strategy decisions involve selection of the most effective distribution channel most appropriate level of distribution intensity and degree of channel integration distribution strategy 10 channel strategy channel selection market factors buyer behaviour, buyer needs, willingness of channel. Each free business plan template is available in microsoft word doc format, and many of the business plan forms are available in excel xls format as well. Channel width depends on the intensity strategy chosen by the. Discuss hindustan unilever distribution strategy within the marketing management rm, im forums, part of the resolve your query get help and discuss projects category. Apr 14, 2019 the first channel is the longest because it includes all four. Hul distribution model retail supply chain management free. Hul distribution model hul distribution modeloverviewhuls previously known as hll products are distributed through a network of rural. Agewise population distribution 2006 family budget study.
Hindustan unilever limited hul, formerly known as hindustan lever limited hll, is the largest consumer products company in india. There is no standardised level which proves that the distance between the two is eliminated. Besides market research for the development and sales of goods according to need and wants of consumers, the participants of distribution channel also help producers in. As a result of this decision marketing channels can be divided into. During the course of study we discovered that there are many channels for the distribution of lux. Dec 12, 20 hul project shakti distribution channel ppt 1. These types of analyses start with the share of big firms and groups, both on national and international levels. A channel of distribution is the structure of intracompany organisation units and extra company agents and dealers, wholesale and retail through which a commodity, a product or service is marketed. The same is true for the marketing of services too.
Hul distribution model free download as powerpoint presentation. What are the different types of channel of distribution. Hul distribution model retail distribution business. This is a research report on hul brand product portfolio mix by k. In this case the manufacturer sells directly to customers. Role and classification of channels of distribution of goods. An example of a direct marketing channel would be a factory outlet store. Amazons whole foods purchase increases its distribution. Thus, the distribution channels are a vital constituent of a firms comprehensive marketing strategy.
Simply putting a game on your own website, however. Huls distribution network comprises about 2,500 redistribution stockists, covering 6. A distribution channel can also be very complicated, with several levels. Mcommerce the supplying of goods through consumers.
Hindustan unilever distribution strategy management paradise. The relevant research hypotheses were examined in three online channel function. How do you get your new product to the person who needs it most. Also, channel conflicts are very common, leading to disruptions in distribution. Hul distribution modeloverviewhuls previously known as hll products are distributed through a network of 4,000 redistributionstockists, covering 6.
A description of the distribution channels at clothing. If you do take an original approach to distribution, be sure it dovetails with your game design, and vice versa. It comprises of a producer, wholesalers and retailers, all acting independently. Distribution is one of the most important aspects of product development. Thailand thai pineapple canning industry produces pineapple in thailand have plantations to grow. In other words, it is a distribution network through which producer puts his products in the market and passes it to the actual users. Jul 02, 2015 understanding online distribution channels. Consumer acceptance of internet as a channel of distribution.
In an effort to ensure distribution of cement pan nigeria, the company is currently seeking credible distributors nationwide. Distribution channel refers to the network used to get a product from the manufacturer or creator to the end user. Download free version doc format download free version pdf format my safe download promise. The product chosen by us for the project is lux soap which is one of the flagship brands of the indias largest fmcg company, hindustan unilever limited hul. A distribution channel can be as short as a direct transaction from the vendor to the consumer, or may include several interconnected intermediaries along the way such as. The intermediaries perform various other functions like financing the products, storing the products, bearing of risks and providing required warehouse space. It gives the history of the company in india and provides details about the offline distribution channel which enabled samsung to establish itself as a leading player in india. Hul distribution networkfinal presentation transport.
Hul has one of the widest and most efficient distribution networks for consumer. In the rural channel design, a rs is made responsible to service all the villages of a particular town. Investor presentation for hindustan unilever limited. The reach of the distribution network in rural areas is one of biggest strengths of hul. Manufacturers and consumers are two major components of the market. Intermediaries perform the duty of eliminating the distance between the two. Hul distribution networkfinal presentation free download as powerpoint presentation. Marketing concept emphasizes on earning profit through satisfaction of the customers.
Vertical information sharing in distribution channels. Huls products are distributed through a network of redistribution. Thailand thai pineapple canning industry produces pineapple in thailand have plantations to grow pineapples and can them in a warehouse. Amazons whole foods purchase increases its distribution channels. This release communication, except for the historical information, may contain statements, including the words or phrases such as expects. Each layer of marketing intermediaries that performs some work in bringing the product to its final buyer is a channel level. We have analyzed the distribution network of hul from the following. Channels of distribution by ellen macgregor on prezi.
Vertical information sharing in distribution channels 1 introduction an important trend in product distribution is the growth of informationintensive channels. The main function of a distribution channel is to provide a link between production and consumption. New businesses can choose an ideal shipment and distributing partner with this printable comparison worksheet. Channel width is the number of intermediaries and institutions located in different levels of the channel as a result of a decision on coverage of market with products and services. Hll distribution system is the best amongst fmcg companies. Supply chain management of hindustan unilever limited. Hul, through its innovative concepts of project shakti and project streamline has now reached 50000 villages and around 250 million customers.
Lesson 20 channels of distribution national institute of. Dabur colgate tata tea marico britannia godrej gsk. A key ingredient in retailing success is the strength of a companys distribution channels. Distribution channels meaning and their significance. Channels of distribution indicate routes through which goods and services flow or move from producers to consumers. April 21, 2016 intern english, general information, 0. Distribution channels and their roles in the enterprise szopa p. Some companies produce pineapples in florida most pineapples that are grown in other parts of the world are imported by the u. This lesson will discuss these channels, the types of distribution systems, and the goods and services that move along these channels.
Channel 3 is called a directmarketing channel, since it has no intermediary levels. However, additional channel of distributions can be added. Hul dividend distribution policy adopted by the board on 26th october, 2016 page 1 hindustan unilever limited dividend distribution policy the companys dividend distribution policy shall ensure that it returns cash from operations that is in excess of its immediate and foreseeable needs back to the. The movement also involves payment, information, and promotion of the business. Many holiday companies also market direct to consumers, bypassing a traditional retail intermediary the travel agent. Hul distribution networkfinal presentation transport retail. In selecting channels of distribution, manufacturers are concerned with twin decisions what channel to opt for and which particular trader to be selected. Producers intermediaries buyers the structure of the channel can make or impede opportunities for marketing on the internet. Channels of distribution cod the channel of distribution identifies how the merchandise moves from the vendor to the store or customer. Hul 9 organization structure distribution channel market segment wise penetration products of hul category wise sales growth bcg analysis 5. Retail shop this method is used by majority of all retailersvendors. The importance of distribution channels is analysed both for individual economic operators, i. Distribution channels hul free download as word doc.
The path through which goods and services travel from the vendor to the consumer or payments for those products travel from the consumer to the vendor. Supply chain management of hindustan unilever limited authorstream presentation. Hence, having coordination between these three becomes the major challenge for such a system. Nov 28, 2011 sales and distribution channel of hul 1. Investor presentation 12 09 2018 hindustan unilever limited. Distribution channel overview a distribution channel is a group of interdependent firms that transfer product and information from the supplier to the consumer.
In the ever widening markets, especially in consumer goods, marketing channels have a distinctive role in the implementation of marketing plans and strategies. Dangote cement will adopt the same distribution strategy in all the countries of its operations. What are the characteristics of marketing channels. Scribd is the worlds largest social reading and publishing site. The institutions specializing in manufacturing, wholesaling, retailing and many other areas join forces in marketing channel arrangements to make possible the delivery of goods to industrial users or customers and to final users. Such channels are characterized by channel partners who invest in bundles of sophisticated information technology like telecommunication and satellite linkages. Dangote cement plc is nigerias largest cement producer with operations in 14 african countries. Hul background hul background indian largest fast moving consumers good company headquartered in mumbai over 700 million consumers more than 15,000 employees, including 1,300 managers more than 200 highly qualified scientists and technologists shares listed at bse stock code 500696 and nse stock code hindunilvr shareholder base of over 3.
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