PARALLEL CHANNEL ENVIRONMENT

Name Roll Number

Akshay Dakshin Ramesh PGPM-22-006
Rishabh Aditya PGPM-22-053
Saumya Sharma PGPM-22-060
Viveka Vate PGPM-22-073

Introduction

The success of the market depends on creating a superior product with competitive pricing, appealing
and desired features. The product must be available in the right place at the right time. A strategic
decision is made for the circulation of the products. The distribution facilitates the movement of goods
from producers to consumers.

The number of intermediaries between producers and consumers defines the nature of distribution
channel. When a manufacturer sells directly to customers, for example by telemarketing the products it
is direct marketing channel or zero level channel. Since consumers are shopping at more than one
location, our product should be available at multiple locations. This is Indirect Marketing Channel which
means manufacturer involves middlemen in the distribution process. There are broadly two categories of
single level channels which includes only one intermediary, that is retailer, and dual level channel
includes wholesalers and retailers. Parallel distribution channel involves the practice of organizations
utilizing multiple levels of channels, whether direct or indirect, to establish connections with customers
and facilitate the sale of goods or services.

PARALLEL DISTRIBUTION CHANNELS IN INDIA

India is renowned for its diverse and dynamic marketplace, characterized by a parallel channel
ecosystem where multiple distribution channels operate simultaneously to meet the diverse needs and
preferences of consumers. This article aims to explore the distinctive features, challenges, and
opportunities presented by this parallel channel environment for businesses operating in India. The
parallel channel environment in India refers to the coexistence of various distribution channels, including
traditional retail, modern retail, e-commerce, and direct selling. Each channel possesses unique
characteristics and serves specific customer segments.

DELL

Dell is a technology services and solutions organization and one of the world’s largest personal computer
manufacturers and has a world class supply chain to support its operations. Dell pioneered the Direct to
Customer channel through configure to order [1]. In 2006 Dell made a shift in its distribution channel
strategy due to consumers demand and a market shift in perception of technology purchases.
Consumers started looking at technology as cost effective and commoditized. Thus, Dell realized the
need to expand to parallel distribution channels like retail, ecommerce, and direct selling. Dell leveraged
the network of distributors, resellers, and retailers; Dell ensures that its products are available in even
the remotest corners of the country.

Dell has established strategic partnerships with numerous distributors and channel partners across India,
leveraging their expertise and local market knowledge for effective product distribution. These
collaborations provide Dell access to a diverse customer base, including businesses, educational
institutions, and individual consumers.

Dell's parallel distribution channel in India offers value-added services and support. Channel partners
assist customers in selecting the right Dell products and provide post-sales support, including
installation, warranty services, and troubleshooting assistance. Efficient logistics and supply chain
management, facilitated by channel partners, address India's unique distribution challenges.

Conclusion:

India's parallel distribution channel has proven to be a key driver of Dell's success in the Indian market.
By leveraging strategic partnerships, expanding reach, and offering comprehensive support, Dell ensures
that its products are readily available and accessible to customers across the country, contributing to its
strong market position.

References:

1. https://www.jstor.org/stable/43699375?seq=1
2. Marketing Management – Philip Kotler
3. https://quickbooks.intuit.com/za/resources/growing-a-business/multichannel-distribution-
system/