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pre-1972 (sole distributorship model) variable Perishiability inventory holding cost, administrative cost delivery charges maintenance cost commistion administrative cost overheads sole distributor performance based incentive presence of branches competition merits
flexibility in control distributor get motivated and sales inc wide coverage, better reach
Group-2 1972 to 1979 (regional marketing company) 1 2 role of brances role of RMC 1979 to 1987 Group-3 1 2
connecting branch with retailer less order processing time at branch le better coordination
Role of retailers
increase reach/coverage of market/cu DPCO influenced less retailer market 1987 to 1990
Group-4 1 2 3 4 5 Group-5 1 2 3 customer service A/C receivability Roles of branches Roles of branches (reduced) Role of KRD Role of branches Credit sales Role of retailers 1991 onwards
flexibility to control/more time to con increase access point reduction in branches resulted in prom sales increase increase number of retailer resulted in
better service to customer due to fast collection of a/c receivable resulted in increase number of branches resulted holding cost is low/inventory carrying
4 5 6
Role of retailers
increase access point connecting branch with retailer increase availability and more sales reduction in number of staff at distrib less unionization among the staff lead increase number of retailer resulted in
merits
ice to customer due to faster processing of a/c receivable resulted in reducing the books debts umber of branches resulted increase sales/profitability. st is low/inventory carrying cost is low
branch with retailer ailability and more sales n number of staff at distributor level from 600 to 200 zation among the staff leading to more efficiency umber of retailer resulted in increase availibility
demerits lengthy distibution channel distibuiton cost increases administrativ cost increases inventorty cost increases maintenance cost increases distribution cost increases distribution cost goes up overally dependent on distribuiton channel,relative intensity of distribution more number of branches higher the maintenance cost, higer operating cost and low profitability resulting increase margin to distrubutor resulted in low profitability.
cost of distribution will go up more time spent on complain from retailers/ account receivable increased less time for doing promotion for sales retailers lack of interest of sales
reduction in number of branches resulted in low time availability for sales promotion customer service, better coordination/increase cost of warehousing poor customer service and low sales / low profitability Account receivalbe increase and reduced profitability none
better coordination/increase cost of warehousing cost of distribution will go up increase cost of distribution
none