Distribution Channel & Logistics

Session IV
Dated 19th August 2008
Types of Retailers
 Speciality Store  Narrow product line – The Body
Shop
 Departmental Store  several product line - Nike
 Supermarket  Large, Low cost, Low margin, high-
volume, self service store designed to meet the total
needs of food nd household - Foodworld
 Convenience Stores  small store, often 24/7 high
turnover - Convenio
Types of Retailers - continued
 Discount Store  Standard or speciality merchndise,
low price, low margin high volumes store - Walmart
 Off – Price Retailer  Leftover goods over runs
irregular merchandise – Bata
 Super store  Huge selling space, routinely
purchased goods, Category killer - Metro
 Catelog Showroom  Broad selection of High mark
up, fast moving, brand name goods sold by catelog –
discounts. – Wills Lifestyle
Retailer – levels of service
 Self Service  own – locate – compare –
select process
 Self Selection  customers find their goods
– although help is available
 Limited service  information and
assistance given by retailer
 Full assistance  salespeople are ready to
assist at all levels of decision making
Retailing  Store & Non-store selling

 Non Store Selling

– Direct selling  multilevel selling & network
marketing - Amway
– Direct marketing  telemarketing and internet
marketing - Skyshop
– Automatic vending -
– Buying Service  storeless retailer – Home
Delivery systems
Wholesaling functions
 Selling & promoting
 Buying and assortment building
 Bulk breaking
 Warehousing
 Transportation
 Financing
 Risk bearing
 Market information
 Management services & Counseling
Types of wholesalers

 Merchant Wholesalers
 Full service wholesalers
 Limited service wholesalers
 Brokers & agents
 Specialised Wholesalers  Agricultural
commodity
Market logistics

 Deciding on the company’s value proposition

to its customers
 Deciding on the channel design and network
strategy
 Developing operational excellence in sales
forecasting, Warehouse management,
Transportation management & Materials
management
Market logistics - continued

 Implementation of the solutions with the best

information systems, equipment, Policies &
procedures
Logistic Efficiencies

 Low Cost
 Optimal Bulk
 Inventory Management
 Documentation

 MLC = TFC + FW + VW + LS