Submitted to: - Dr. S.

R Singhvi
Submitted by: - Yash Mishra
Omni- Channel
Omnichannel is a multichannel approach to sales that seeks to provide customers with a
seamless shopping experience, whether they're shopping online from a desktop or mobile
device, by telephone, or in physical store. Increasingly, consumers are toggling between
online and offline to research and buy products and services. In a 2016 study, Deloitte found
that digital experiences influence 56 cents of every dollar spent in physical stores. As the
retailing industry evolves toward a seamless ‘omnichannel retailing’ experience, the
distinctions between physical and online will vanish, turning the world into a showroom
without walls.

Multiple Channel Vs Omni Channel

Multiple Channel infers offering multiple channels for customers to interact with an organisation.
Omni-channel experience is defined as the design of the customer experience through your
customer’s eyes to provide an integrated, seamless and consistent customer experience across all
channels including face to face, mobile, digital and voice. Omni-channel anticipates that customers
may start in one channel and move to another as they progress to a resolution or purchase.

Ingersoll Rand
Provide Compressed air for: -
Powering Tools and other machinery (plant air), Powering and controlling pneumatic systems
in certain equipment (special Machinery), Supplying air for certain manufacturing processes
(process air),
Classification by Horsepower (hp):
 Small (below 25hp)
 Medium (between 25hp & 300hp)
 Large (more than 300hp)
Classification by compression technology
 Reciprocating
 Rotary screw
 Centrifugal
Market share of 30%, $660 million market. I-R operates within multiple distributional
channels
Namely: -
 Direct sales force
 Independent distributors
 Company owned distributors i.e. the air centres
  Manufacturer’s representatives

Distribution- Channel:
Direct Sales force: - Direct Sales force organized into 26 territories, Responsible for sales of
complete compressors above 250 hp recips. Above 450 hp rotaries, All the centrifugal
compressors. Through this channel the sales representatives were paid commissions of 1% to
3% on sales of the products. Direct sales force has a cost of 11% of sales. This distribution
channel serves large companies and hence it demands a sales force with high technical
expertise and hence is awarded a high commission. Direct Sales Force are used moreover for
large orders and are perceived as being ‘elephant hunters. With CENTAC-200 being on the
lower end of the line there runs a risk of sales reps ignoring CENTAC-200. Although this
option consists of well-established service capabilities and is a good addition to the shrinking
line. But this is the least possible option as along with high risk the commission incurred is
high.
Independent distributors are used for selling rotary compressors below 450 hp and
reciprocating compressors below 250 hp. There are 80 independent distributors and the cost
to company is about 21% of the sales. Through this channel the company earns 10-15% gross
margin on compressors and 30-35% on spare parts. They have a well-established network and
CENTAC-200 would be a good reward to its loyal distributors. This would also be in line
with their hp assignment. The companies’ policies favor distributors and when machines are
in short supply they go to the distributors. Since Centac-20 operated at high speeds and
inadequate repair carried the risk of serious damage. It runs the risk of inadequate technical
support the distributors would provide. Moreover, low spare parts requirement is not likely to
attract distributors. Distributor training is also required.
Company owned distributors (Air centers) are used for the distribution of rotary
compressors below 450 hp and reciprocating compressors below 250 hp. There are 19 air
centers and these are used to sell only I-R’s products. Although the cost to company is 19%
of the sales, the centralized order entry system and inventory transfer facility enables better
management of the distribution. Air centers were originally introduced due to the
unavailability of independent distributors in some places. Air centers are useful in areas
where distributors were not successful. The centralized order entry system and inventory
transfer facility enables better management of the distribution. Air centers were also
introduced due to the unavailability of independent distributors in some places.
Manufacturer’s representatives: - Responsible for selling Do-It-Yourself products. 5 MRs
catering to retail chain stores and catalogue houses. Paid 3% commission on sales. Have
extensive market contacts and long experience in selling.
Multiple Channels: - In case of IR the products offered and buying behavior of the customer
plays an important role in Multiple channel system. The need of the customer can not be
fulfilled by a website as each customer needs customized product as their particular need. For
industrial purchases customer wants opinion of the experts of particular products who can
present them the working and answer him his doubts. By use of web in Multiple channel
system the channel can become steward and process of ordering and delivery of goods can
become come cost effective and customer friendly. IR can make portal for real time customer
support and advertisement, since the complexity of the products are high Web will not help
much to increase the sales. On the other hand, web can help IR to make internal process easy,
maintaining and getting knowledge of overseas SKUs, availability of machinery, parts for
repairing and new modifications in products and services.