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.
• Total assets of PepsiCo was US$78.55 billion and total equity
was US$14.87 billion in the year of 2019
• Total subsidiaries of PepsiCo are in more than 200 countries.
 Brad’s Drink Founded- Pepsi's First Variant
• Firstly offered in a Pharmacy in the year of 1894.
• In 1898 Named as PepsiCola.
• Selling takes place in America’s 25 States.
• Bankruped Twice in the year of 1923 and 1929.
• Coca Cola rejected acquisition offer twice in same time of
Bankruptcy.
 Revival of PepsiCo
• Charles Guth a new Franchisee owner credited for New
Formula.
• In the year of 1931 new Formula made PepsiCo a substitute of
Brand gaint Coca Cola.
• In the year of 1940 New price strategy made the pepsiCo
World’s Biggest company :
 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.
 Manual Cloth Washer
• In the year of 1910 Louis Upton invented first Manual Cloth
Washer in their Machine Shop.
• In the year of 1911 Louis Upton Started Upton Machine
Company.
• Once got 100 machines order but all turned into defective
• Then Upton recalled all the machines and gained consumer
confidence by repairing all the machines.
• In the year of 1929 almost 1900 companies with the wholesale
business in Upton Machine Company turned into Merger and
Named as Whirlpool.
 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
plant at Ranjangaon near Pune.
 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 The Charity Organization
• Established in London in the year of 1905.
• In 1910 awarded by Official Rating Center by giving
Chronometric Precision Certificate.
• In the year of 1919 Company shifted to Geneva, Switzerland.
• In the year of 1926 invented First Waterproof Watch.
• In 1944 Establishment of Hans Wilsdorf Foundation for
Charity.
 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.
1. Retail stores of7.Rolex
Kamathipura(Lal Bazar)
Indore
in India
2. Mumbai
8. New Delhi
3. Borivali
9. Coimbatore
4. Bandra East
10. Kochi
5. Pune
11. Bengluru
6. Ahmadabad
12. Telangana
 References
• 1. www.pepsico.com
• 2. www.whirlpool.com
• 3. www.rolex.com
• 4. https://en.m.wikipedia.org/wiki/PepsiCo
• 5. https://en.m.wikipedia.org/wiki/Whirlpool_Corporation
• 6. https://en.m.wikipedia.org/wiki/Rolex
• 7. Sales and Distribution Management V-Semester Vipul’s BMS
Series