Distribution

Channels
Jenalyn Reyes, MM.
Have you ever wonder?
 Distribution Channels
move products and services from businesses to consumers and to
other businesses.

Intermediary is used by economists to describe any

business in a distribution channel between the
manufacturer and the consumer.
 Elements of Distribution Channel

Manufacturer Wholesaler Retailer Consumer

INTERMEDIARIES
A Diagram : Types of Distribution Channel
DIRECT CHANNEL IN A NUTSHELL

Manufacturer Consumer

P&G Warehouse→ → Mommies who love

Tide & Ariel for their
laundry.
A Diagram : Types of Distribution Channel
SALES THROUGH RETAILERS IN A NUTSHELL

Manufacturer → Retailer → Consumer

Big Chain Supermarket → Mommies who love Tide & Ariel for
P&G Warehouse→
(i.e Puregold/ their laundry.
Robinsons, Mercury Drug)
 A Diagram : Types of Distribution Channel
SALES THROUGH WHOLESALER IN A NUTSHELL

Manufacturer → Wholesaler → Retailer → Consumer

Supermarkets → Mommies who love Tide &

P&G Warehouse→ Regional Distributors →
(i.e specific businessman who owns a (i.e Chuzon Supermarket, Buymaxx, Ariel for their laundry.
Aling Nena’s Store)
warehouse, own employees that can process
orders and a system that can connect directly
to P&G)
Three Types of Distribution Channel

DIRECT

INDIRECT

INTERMEDIARIES
 P&G Central
Warehouse –
Canlubang, Laguna

Imagine the world with

NO DISTRIBUTION CHANNEL.

Point to Ponder: What will be the

impact in the operations?
Advantages of Direct Distribution Channel

Collect valuable data on customer

buying habits 1
Distinguish yourself from the
competition, respond to product
performance and customer feedback
2
Get your products to consumers
faster 3
Avoid sharing profits with a third-
party distributor 4
Build relationships with your
customers 5
Disadvantages of Direct Distribution Channel

Sizeable costs that can come with direct

distribution. (i.e the need to purchase trucks,
hire drivers and rent storage space)
1

harder to reach potential customers without

the network an established distributor 2
provides.
 Pros and Cons of Indirect Distribution Channel
ADVANTAGES DISADVANTAGES

Shared shipping and Distance it puts

1 storage costs between you and your
customers.
1
Make it easier for
2 customers to find your
products (AVAILABILITY)
It’s also harder to
establish brand loyalty 2
when you are not
Benefit from your third- interacting directly with
3 party’s experience,
infrastructure and salesforce
your customer

Avoid the complexity of

4 managing distribution
logistics
How did COVID19 change our distribution
channels?
Online Delivery Service

Order? Delivery!
 How COVID19 affects our distibution
channels?

Order
Online Manufacturer Agent Customer
Preparation of the food we Mr. Grab/FoodPanda to Finally, the best meal
Agent order. deliver our favorite food. on your plate 
 Distribution Channels Functions

Payments Communicatio
n

Stock Negotiation
Transfer

Distribution Ordering
Any questions?
 Summary and Key Takeaways

It’s a trial and

error.
The organizations or Choose Wisely.
companies must carefully Do careful research when
observe all the distribution
looking for the right
channels and eventually adapt
those channels which results in
distributor for your
best profits.  company's products

Mutual
Business nature
This is completely depends Goals
Try to find a distributor with
on the nature of the methods and strategies that
business and money can match your company's values
be spent by the and goals.
organization.
Thank you!