DISTRIBUTION STRATEGY

SONY ERICSSON Expanding distribution network

Company Name Product : : Sony Ericsson Mobile handsets
With enhanced portfolio of products, across segments the company sought to consolidate and further make inroads into the booming Making Sony Ericsson handset available even to the farthest consumer in the country Gain increased market presencetores and wider purchase choice for the end consumer --Expanded its nationwide sales distribution network adding Ingram Micro as its second national distribution partner along with Salora International -- Post this expansion, Sony Ericsson has a presence in more than 15000 retail outlets --Apart from Sony India which provides presence in retail network of Sony Worlds, and Sony Exclusive Stores.

Strategic objective :

Distribution strategy :

TITAN INDUSTRIES LTD. Using various distribution formats

Company Name Product : : Titan Industries Watches The Company is looking at further spreading its wings Target young consumers who usually walk into malls for window shopping To exclusively target woman customers

Strategic objective :

Distribution strategy :

-- 60 retail stores which is a mix of World of Titan, Time zone -- 20 FasTrack Kiosks in Malls across the country -- Only Womens Watch Store in in Womens only MallBangalore

HUL. Reorganizing distribution network

Hindustan Unilever Ltd. Two Divisions Home & Personal Care products Soaps & detergents

Company Name

Product

Distribution objective :

Separate distribution system for various business divisions

Strategic objective :

To create scale, retain focus and wherever possible avoid duplication

-- Tried to change the disorganized nature of the distribution set up by consolidating the operations of its intermediaries -- HPC and soaps & detergents distribution merger in April 2004 -- Channel specific trade structure, appointing stockists specific to retail customer being --Consolidated its stockists to get scale and size across its operations

Distribution strategy :

MOTOROLA AND BHARATI TECH--- Strategic alliance for distribution: Selecting a suitable partner
Company Name Product : : Motorola Mobile handsets Access to rural market To reach growing population of professionals eager for the high end handsets To exclusively target woman customers

Strategic objective :

Distribution strategy :

-- 60 retail stores which is a mix of World of Titan, Time zone -- 20 FasTrack Kiosks in Malls across the country -- Only Womens Watch Store in in Womens only MallBangalore

-- Bharatis has a network of 250 distributors and 11,000 retailers in the country for selling Motorolas handsets -- Bharatis access to rural market is a perfect match for Motorola's efforts to connect the unconnected by providing handsets suited to the mass market -- Bharatis broad distribution in urban areas allows Motorola to reach the growing population of professionals eager for the latest high end handsets

Choice of Distribution partner :

DISTRIBUTION STRATEGY The Case of Asian Paints

Market Share

--38% market share in decorative paints --33% overall in the organized sector Rs.3500 crores Rs.250 crores

Turnover Profits

Asian Paints is the Market Leader and way ahead of competition

HOW DID THIS HAPPEN ?

The Indian Paint Industry

Sl.No. 1. 2. 3. 4. 5. Company Decorative Asian Paints Goodlass Nerolac Berger Paints ICI Paints Shalimar Industrial Overall

38 14 9 9

15 41 10 9

33 18 9 9

Asian Paints Market Leadership is primarily due to their innovative or unique distribution strategy. Asian Paints distribution strategy may be summarized in terms of the following major steps/moves Bypassing the bulk order segment : and approaching individual consumers This was a very significant strategic decision, which moulded almost every major subsequent strategy move in this direction Shift to semi urban rural areas: AP clearly foresaw a large emerging market for paints in semi-urban and rural areas and decided to exploit it through suitable distribution policy/strategy Unconventional channel design: Going directly to retailers for better market impact While others were with working through a handful of intermediaries, AP decided to go for direct distribution to hundred of retailers for better market impact Competing through small packs : Against the conventional 500 ml and larger sizes, AP introduced 200 ml, 100 ml, 50 ml This was a big step towards larger market coverage and greater customer satisfaction

Open door dealer policy: AP decided to choose as a member of its retail channel almost anyone who was willing to work as its dealer As a result, AP has now, 15,000 dealers while its nearest competitor has only 8000. AP is adding 200 to 250 dealers every year

Nationwide Distribution network : Big companies limited their distribution within big cities and small, local or regional companies concentrated on selling their paints in the neighborhood territories It achieved an active presence through out the country, in all geographical zones , state and territories

STEPS IN IMPLEMENTATION OF DISTRIBUTION STRATEGY

AP created a large network of dealers

Established a network of company depots

Created a marketing organization that matched its distribution

Successfully resolved the cost service conflict in distribution through (i) A strong commitment to distribution cost control (ii) Effective inventory management (iii) Effective control of credit outstandings (iv) IT initiatives in cost control