XYZ CONSUMER

HEATHCARE

Various Ways of Deciding a

Distributor
MARKET VARIABLES
Size
Geography
Density
Behaviour

PRODUCT VARIABLES
Bulk and Weight
Perishability
Unit Value
Degree of Standardization
Technical vs. Non Technical
Newness

COMPANY VARIABLES

Company Size
Financial Capacity
Managerial Expertise
Objectives and Strategies

TYPE
TYPEOF
OFINTERMEDIARIES
INTERMEDIARIES

-Sales
-Sales Force
Force

-C&F
-C&FAgents
Agents
-Stockist/
-Stockist/Distributors
Distributors

NUMBER
NUMBEROF
OFINTERMEDIARIES
INTERMEDIARIES

--Exclusive
ExclusiveDistribution
Distribution
-Selective
-SelectiveDistribution
Distribution
-Intensive
-IntensiveDistribution
Distribution

CONTROL
CONTROL

--Price
PricePolicy
Policy

-Conditions
-Conditionsof
ofSale
Sale

Choice?
Wider and Deeper Reach:

Department Stores

Independent Retailers

Pharmacies/Drugstores

Specialist Retailers

Supermarkets/Hypermarts

Paan Shops

Kirana Stores

INTENSIVE
DISTRIBUTIO
N

The Distribution Model

COMPANY

C&F AGENT

DISTRIBUTOR*

RETAIL

CONSUMER

INSTITUTIONA
L
INSTITUTIONAL
CONSUMER
*for

Decision
JAIN &
SONS

Fits the Bill- Intensive

Distribution!
Flexible- can be easily molded
Willingness to Grow
Handle both Retail and

Institutional
Greater Control
Greater Negotiating Power
Location Advantage
Mutually Beneficial Relationship

Credit
Credit and
and Financial
Financial Condition
Condition
Sales
Sales Performance
Performance
Size/
Size/ Space/Location
Space/Location
Attitude
Attitude
Relationship
Relationship with
with Principal
Principal
Market
Market Coverage
Coverage
Reputation
Reputation
Past
Past Experience
Experience

Why Not?
PAWAN
SHAMBHU

Industrial Distributorship F&B

Reasonably Established Reduced Control and

Negotiating Power

Loyalty ?

Weak loyalty has dropped

companies before

Well Established- Reduced

Control and Negotiating
Power

Distributing competitors
products competing
objectives

APPENDIX

Decision Dilemma
Advent of Organized Retail
Chains:
Increase in Shelf Space

Jain
Jain and
and Sons
Sons

Prominent Retail Outlets:

Department Stores

Independent Retailers

Pharmacies/Drugstores

Specialist Retailers

Supermarkets/Hypermarts

Paan Shops

Kirana Stores

Departmental Stores

Pawan
Pawan Distributor
Distributor
Shambhu
Shambhu
Brothers
Brothers

Wide
Wideand
andDeep
Deep
Reach
Reach

Qualified
Staf
Qualified Staf

DISTRIBUT
DISTRIBUT
OR
OR
Warehouse
Warehouseand
and
Office
OfficeSpace
Space

Experience in
Experience
in
Institutional
Institutionaland
and
Retail
RetailDistribution
Distribution

Distributor Prerequisites

The Candidate Pool

JAIN AND SONS

PAWAN DISTI

SHAMBHU

Dealership of Fena

Institutional
Distributor of Sugar
and Basmati

Retail Distributor of
Moov

Weak Credentials

Strong Credentials in
the Domain

Strong Credentials
and Focused

Monthly Sales: 10-20

Lacs

1.6 Cr Approx.

60 Lacs

2 Vans/ 10 Sales
People

10 Sales people

6 Vans/ 12 Sales
People

Congested Location & Small Warehouse

Small Warehouse
Available

Stockist of Moov:
Space and
Management

Ready to Take Up
Market Leader in
Retail Distribution also Sugar Disti

Retail: The right bet!

Can be easily
moulded as per XYZ
guidelines

Principal relationship
on profitability

Synergetic
Relationship with
Principals

The Distribution Model

COMPANY

C&F AGENT

DISTRIBUTOR

RETAILER

CONSUMER

Decision Attributes
Advent of Organized Retail
Chains:
Increase in Shelf Space

Prominent Retail Outlets:

Department Stores

Independent Retailers

Pharmacies/Drugstores

Specialist Retailers

Supermarkets/Hypermarts

Paan Shops

Kirana Stores

Departmental Stores

Past
Past Experience
Experience
Sales
Sales Performance
Performance
Relationship
Relationship with
with Principals
Principals
Profit/Revenue
Profit/Revenue Record
Record
Financial
Financial Strength
Strength
Availability
Availability of
of Space/
Space/ Location
Location
Reputation
Reputation
Attitude
Attitude

Available Models
Institutional Distributor

supply goods directly to other

businesses

Holds No Inventory

Retail Distributor

supply goods directly to the stores

Holds No Inventory

Exclusive Dealer

Tied Down to one Dealer

Complacency can creep in

Stockist:

distributes the goods with a plan

Holds Inventory

Stockist
Stockist
Retail
Retail Distributor
Distributor
Institutional
Institutional
Distributor
Distributor
Exclusive
Exclusive
Dealership
Dealership
Stockist
Stockist

Available Models
Who are they
A distributor is a person who distributes and supplies
the products to the other respective authorities.
A stockist is one who stocks the goods.
Dependency on factors
They are not dependent on any factors.
They are dependent on the factors such as season,
time and place.
Functions
They are basic distributors who supply the products
to their respective user.
They are also suppliers, but they first store the
goods, and then distribute.
Roles
They can be manufacturers
They can be retailers and distributors.
Time factor
They supply the products at regular intervals, and in
continuity.
They make the products available at the time of
shortage.