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Hybrid Distribution Model
Hybrid Distribution Model
DISTRIBUTION
Introduction
Retailers Retailers
Delivery
Profit Margin
Packaging
Training
Promotional help
Uniform pricing
Other incentives (Bonus and discounts)
Airtels Hybrid distribution model
Bharti Airtel a leading telecom provider has more than 110 million subscribers and offer
various products and services like mobile connections , home phones , broadband and
internet , DTH and many other services .
1. Decentralized structure:
Various departments for various channels such as-
i. Inventory management
ii. Marketing
iii. Merchandising
iv. Finance
v. Analytics
vi. Product Development
2. Increased cost
3. Internal conflict across channels
Logistical challenges
1. Inventory management:
Planning & forecasting demand becomes difficult
2. Order returns:
Return of Non-Store purchase orders to physical Stores
Data integration challenges
1. Integrated Data Warehouse permits:
i. To measure customer value
ii. To target appropriate marketing resources
iii. To form view of customer purchase behaviour
2. Data across channels needs to be integrated:
Two critical aspect in this:
iv. Establishing I.T infrastructure .
v. Delivering relevant data to respective channels
3. Traditional collection of data approach lead
to Data Silos:
Less focus on customer loyalty and satisfaction
Multi Channel distribution in
Apparel Industry
Channels forecast to provide the greatest
increase in sales over next two years
Sales
4% 2%
4%
online/ website
9%
Brick and Mortar store
Distributors
11%
52% Social Media
Call center
Catalog
Others
18%
Distribution Model of HUL
PHase1A
PHase1B
Village1
Village Village2
5
Village4
Village3
Project Shakti