Distribution channels:
- Agent/Broker
- Distributor
- Wholesaler
- and Retailer.
The intermediaries involved in process of making a product available for use or consumption constitute to form distribution channels. These intermediaries such as merchants, agents and facilitators each of them plays an important role in success of the company.
In general BtoC business distribution channels may have these intermediaries
The firms have to choose its distribution channels cautiously based on several factors as it will affect all other marketing decisions.
Until the 1980s, Zandu balm focused on pricing, logistics, rural van promotions and event sponsorship. In fact, in an effort to drive growth Zandu sponsored the 1982 Asian Games. Since 1986, however, the brand has taken a more market-centric approach. It has moved from rural predominance to urban prevalence. This is quite contrary to the urban to rural movement that most other brands traverse. This approach has worked quite well for the brand. Later the brand has also actively sought to tap regional markets. In this endeavor, too, Zandu Balm has succeeded in making significant inroads. The small SKUs were launched for effective penetration in rural markets. Here the company choose to do direct distribution where it does not involve wholesalers or agents. Direct distribution involves distributing stocks to retailers without going through wholesalers.
The Emami ltd is planning to increase its penetration by adding upto 200000 outlets to its distribution network. They are looking for effective tapping of rural health sector as there is a lot of scope for development. Also the distribution of products in villages with less than 2000 population is still a major issue.
The firms have to choose its distribution channels cautiously based on several factors as it will affect all other marketing decisions.
Until the 1980s, Zandu balm focused on pricing, logistics, rural van promotions and event sponsorship. In fact, in an effort to drive growth Zandu sponsored the 1982 Asian Games. Since 1986, however, the brand has taken a more market-centric approach. It has moved from rural predominance to urban prevalence. This is quite contrary to the urban to rural movement that most other brands traverse. This approach has worked quite well for the brand. Later the brand has also actively sought to tap regional markets. In this endeavor, too, Zandu Balm has succeeded in making significant inroads. The small SKUs were launched for effective penetration in rural markets. Here the company choose to do direct distribution where it does not involve wholesalers or agents. Direct distribution involves distributing stocks to retailers without going through wholesalers.
The Emami ltd is planning to increase its penetration by adding upto 200000 outlets to its distribution network. They are looking for effective tapping of rural health sector as there is a lot of scope for development. Also the distribution of products in villages with less than 2000 population is still a major issue.
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