Beruflich Dokumente
Kultur Dokumente
Delivering value…
SDM- Ch 11 Tata McGraw Hill 6
Delivering Value
• Keep goods accessible to customers
instantly
• At times, get together to bargain for
better terms
• Pass on benefits or incentives to their
customers
• Have a wide trading area
Major decisions…
SDM- Ch 11 Tata McGraw Hill 12
Major Wholesaling Decisions
• Which markets to operate in
• Manpower to employ
• What products to sell
• Pricing decisions / Promotional support
• Credit and collections
• Image and customer perception
• Warehouse location and design
• Inventory Control
SDM- Ch 11 Tata McGraw Hill 13
Favourable Factors
Unfavourable…
SDM- Ch 11 Tata McGraw Hill 15
Unfavourable Factors
• Companies coverage focus on retailers
and institutions through their distributors
• Using modern retail formats as
wholesalers
• More outlets like Metro C&C being
encouraged
• Enforcing strict price control so that w/s
do not sell below company prices.
SDM- Ch 11 Tata McGraw Hill 16
Distributor
• Is a wholesaler nominated by a company to
exclusively re-distribute the company
products to its customers in a designated
territory. He does not deal in competitor’s
products. Does not sell from his premises.
Extends credit selectively.
– A redistribution stockist for HLL
– A distributor for Philips lighting division
– A distributor for L&T engineering division
Managing Distributors
• Distributor responsibilities include:
– Buying adequate quantities by Stock Keeping Unit
(SKU) for redistribution
– Ensuring full market coverage of all customers in
the territory assigned to him
– Help finance the operations – pays for the goods
upfront but extends credit to his customers
– Maintaining inventory of company products
adequate at all times to service the market
– Assist company in its promotional efforts
Ex pe ctations…
SDM- Ch 11 Tata McGraw Hill 2 3
Expectations from a
Distributor
• To be stated at the start of the relationship
• Helps get the right kind of distributor also
– Achieving sales targets – volume, value and packs
– Financial commitment on inventory and credit
– Investment in infrastructure – space, vehicles
– Manpower – front line and back office
– Distribution effort – market and outlet coverage as
per a beat plan with productive calls
– Developing new markets and new accounts
– Managing key accounts and institutional business
SDM- Ch 11 Tata McGraw Hill 24
Expectations from a
Distributor
• Merchandising and displays in the market
• Secondary sales efforts and tracking – critical
for fmcg and pharma (secondary sales is
sales from the distributor to the outlets in the
market)
• Effectively handling promotions and schemes
initiated by the company
• Managing damaged stocks