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Brand : Reynolds
GROUP 11
SECTION B
IIM Indore
 Contents
1 Channel Levels

2 Super Stockists

3 C & F Agents

4 Dealers

5 Attracting channel members

6 Write Site

7 Way Forward
Channel Levels
Super Stockist

Intermediary between
manufacturer and market

Commission: 3.5%
Effective margin: 2%

Initial investment required

Act as service points

Carry & Forwarding Agent
 DEALERS

Selection Competitor Channel

criteria network segregation

To improve
For small Rotomac, Cello:
product
towns: depending operate through penetration
on counter sales wholesale basis
of the owner in giving complete Only at Indore
the same margins to on trial basis
business wholesalers
Helps in
Main towns: Do not have an
reducing inventory
FMCG distributor extensive levels and lead
distribution network times

Extensive distribution network

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 Attracting
channel
members

Trade promotions
Trade margins
Primary- dealer
6% fixed for incentive of 1.5% of
dealers Institutional sales quarterly value sales

20% approx for Usually through dealers

Secondary- seasonal
retailers and schemes for retailers and
Dealers and ASM
wholesalers distributors
receive pricing supports
BUT
for specific deals

Conditions of sale
Cash and carry policy
Bottom line

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 Some Interesting Facts
It recovered its fixed
costs earlier
Still making a profit

No increment
in product
Brand prices
loyalty of Unique
Reynolds 25% growth
without any concept
Segmen Write site specific to
aggressive
t growing marketing Reynolds
by 15%-
20%
annually

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 WRITE SITE
EXCLUSIVITY OF REYNOLDS
STORE
 An exclusive showroom for
writing instruments

 Showcases a range of global

products from Sanford and
Reynolds, in a smart yet easy
ambience

 Get to touch, feel and choose

from a wide range of
products in a relaxed and
trendy atmosphere
WRITE SITE

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Way forward
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Group 11, Section B