Distribution has been defined as how to
get the product or service to the customer.
It is one of the four aspects of marketing.a
distributor is the middleman between the
manufacturer and the retailer.after a
product is manufactured by a factory,it is
stored in the distributors‟s warehouse.the
product is then sold to customer.
Frequently there may be a chain of intermediaries,each
passing the product down the chain to the next
organization before it finally reaches the consumer or
end-user. This process is known as the 'distribution
chain' or the 'channel.'
A number of alternate 'channels' of distribution may be
-Mail order (including Internet and telephone sales)
-Agent (who acts on behalf of the producer)
Suppliers‟s job is to manage all the processes
involved in the distribution chain,until the product
or service arrives with the end-user. This may
involve a number of decisions on the part of the
-Monitoring and managing channels
Intensive distribution - Where the majority of
resellers stock the `product' (with convenience
products, for example, and particularly the brand
leaders in consumer goods markets) price competition
may be evident.
Selective distribution - This is the normal pattern
(in both consumer and industrial markets) where
`suitable' resellers stock the product.
Exclusive distribution - Only specially selected
resellers (typically only one per geographical area) are
allowed to sell the „product‟.
There are many devices for achieving
motivation. Perhaps the most usual is
`bribery': the supplier offers a better
margin, to tempt the owners in the channel
to push the product rather than its
competitors; or a competition is offered to
the distributors' sales personnel, so that
they are tempted to push the product.
Monitoring and managing channels
Activities of distribution chain are
monitored and managed as many
organizations use a mix of different
channels; in particular,they may
complement a direct salesforce,with
agents, covering the smaller customers
HLL distribution channel
India‟s Largest Fastest Moving Consumer
Need Strong distribution channel to
support its Extensive Product Line of more
Sales Turnover of Rs.11,000 Crores.
The corporate objective of HLL is "to meet
the everyday needs of people
everywhere". This is met through an
extensive distribution system that covers
the diverse geographical boundaries of the
Company, almost touching the lives of two
out of three Indians with 35 power brands
and strong distribution channel.
Recognized as HLL‟s one of the key strength.
HLL enjoys a formidable distribution network
covering over 3400 distributors and 16 million
It Helps to maintain heavy volumes, and hence, fill the
shelves of most outlets.
Distribute products by network of about 7,500
redistribution stockiest (RS) covering about one
million retail outlets.
They Sell to shops in urban areas and to villages accessible
by road and with population of more than 2000.
HLL – Multichannel DS
Producer Two Level Channel
One Level Channel
Zero – Level Channel Distributors
Consumer Segment 1 Consumer Segment2 Consumer Segment 3
Urban Distribution channel
One is by the Regular Retail Channel.
The other is through Direct Selling Channel in
the name of Hindustan Lever Network (HLN).
It already has about 3.5 lakh consultants - all
independent entrepreneurs, trained and guided by
HLN's expert managers.
Spread over 1500 towns and cities, covering 80% of
the urban population.
At the Supermarkets.
Health & Beauty Services.
Rural Distribution Channel
In India, with the total potential of
3,800 towns and 627,000 villages.
Hll distribution network reached
Dilemma was how to extend its
network to the remaining villages in
inaccessible rural areas.
Penetrating new markets would be
Rural Distribution Model
Only Motorable villages covered. 25% of rural
One of the HLL‟s growth initiatives to
penetrate rural markets that could not be
reached by vehicle.
With the help of local stockiest called “Star
Sellers”, distribution network extended to
villages with fewer than 2,000 people.
In turn, Star Sellers sold the brands to
Rural Distribution Model-
Motorability not a constrained. 37% of
Started in 2001,it targets small villages with population of
less than 2000 people.
It aimed to bring down distribution costs in rural market.
Save Distribution margin by cutting one layer of
distribution- The local Distributors.
It seeks to empower underprivileged rural women by
providing income-generating opportunities.
These saleswomen sell HLL products directly to their
It already has about 25,000 women entrepreneurs.
It has already been extended to about 80,000 villages in
Woman entrepreneur selling HLL products
HLL - Logistics
Marketing Logistics – It involves planning,
implementing and controlling the physical flow of
goods , services and related information from
point of origin to point of consumption.
Major Logistics Functions –
Logistics Information Management
135 owned factories
70 depots or warehouses
and over 7,500 stockiest.
Transport –TCI (Transport Corporation of India) provides
transport facility. Goods are transported by trucks.
Logistics Information Management –IT system has been
implemented to supply stocks to RD. Stockiest have
been connected with the company through an Internet-
based network, called RSNet, for online interaction on
orders, dispatches, information sharing and monitoring.
Style Spa, one of the largest furniture chains in
India, will go international.
It is looking at the markets in the SAARC
countries, and plans to open two outlets in
Colombo next year
Style Spa has 85 stores of which 33 are
company operated and 22 exclusive franchises.
This year the company is expanding in the
smaller cities and towns such as Lucknow,
Udaipur, Aurangabad, Nashik, Ahmedabad,
Hubli and Rajkot.
The company plans to open 15 stores in the
current year, of which 12 will be company owned
and the other three company franchisee
operated. It has identified 10 locations where the
stores will open for business by October.
STYLE SPA has recently entered into a
distribution tie-up with Welspun India and Portico
New York to market their home furnishing
products through Gautier furniture showrooms in