Distribution Systems

Subject Teacher: Preeti

Mam

Digambar dattatrey lohakare

TY-BMS(Marketing)
Roll No.24
Exam seat No.2117
 Types of Distribution Systems
• 1. Intensive Distribution

• 2. Selective Distribution

• 3. Exclusive Distribution
 1.Intensive Distribution
When the distributor goods is effected
through a large number of Middlemen it is called
Intensive Distribution. It is Maximum exposure of
the product for the sale in the market.
It is also known as Mass Distribution
For example: PepsiCo.
 PepsiCo.
• PepsiCo Inc. is an American multinational food,
snack and beverage corporation headquartered in
Harrison, New York.
• Founder Caleb Bradham founded in the year of
1920.
• Operating income was US$10.29 billion in the year of
2019.
• Net income was US$7.353 billion in the year of 2019.
 PepsiCo’s Indian Market position
• In India Pepsi has 36 Packaging Plants,
• Out of which 13 are franchisees,
• While 23 Organization are possessed.
• The company’s products reach the market through the following
Three Channels:
. 1.Direct Store Delivery (DSD)
2. Customer Warehouse
3. Third-party Distributer networks.
Distribution channel is Primary factory and Product is Secondary.
 Organizations can give better edges to Bulk
Purchasers. Therefore, this Wholesaler’s channel plays
significant role in this category.
 2.Selective Distribution
When the Distribution is undertaken through
a highly selected groups of Outlets it is called
Selective Distribution System. Some companies use
less than all the available channels of distribution to
market their products.
For Example: Whirlpool Limited
 Whirlpool
• The Whirlpool Corporation is an American multinational
manufacturer and marketer of home appliances, Headquartered
in Benton Charter Township, Michigan United States.
• Founded Louis and Emory Upton in the year of 1911
• Operating income was US$21.25 billion in the year of 2017.
• Net income was US$350 million in the year of 2017.
• Total assets was US$20.03 billion and total equity was US$4.19
billion
• Subsidairies in North America, Europe Middle East, Latin
America, Asia and Africa religion.
 Manufacturing plants
• Whirlpool Inc. US are the world’s leading manufacturer and
marketer of major home appliances.
• The company has principal manufacturing operations and
marketing activities in North and South America, Europe,
and Asia.
• In today’s global level Whirlpool brand marketed in more
than 170 countries.
• In India WIL has its main plant at Faridabad in Hariyana
for for manufacturing refrigerator and freezers.
• The washing machine unit is located at Pondicherry.
• In 1998, the company established yet another refrigeration
 3. Exclusive Distribution
When distribution is effected through a single
dealer or distributer within a particular market
segment, it is called Exclusive Distribution.
For Example: Rolex SA
 Rolex SA
• Rolex SA is Swiss luxury watch manufacturer based in Geneva,
Switzerland
• Founded by Hans Wilsdorf and Alfred Davis in the year of
1905.
• Revenue was US$5.2 billion in the year of 2019.
• Subsidiaries Montres Tudor SA.
 Rolex’ s global network
• Rolex sells it’s products and watches in its own retail stores with
staff who are informed about their products sold and their
specifications.
• Since Rolex is a luxury brand, it’s distribution channel is such
that it signifies Uniqueness and Prestige.
• Therefore, Rolex is Leading name in Luxury wristwatches. The
company operates from Switzerland and relies on 4,000
Watchmakers in more than 100 Countries.
 Retail stores of Rolex in India

1. Kamathipura(Lal Bazar) 7. Indore

2. Mumbai 8. New Delhi
3. Borivali 9. Coimbatore
4. Bandra East 10. Kochi
5. Pune 11. Bengluru
6. Ahmadabad 12. Telangana