Description
The PPT is explains on distribution channels for SUndrop Sunflower Oil.
?
? ?
India - World's fourth largest edible oil economy
Annual consumption of around 11.5mn tonnes Size of the edible oil market is estimated at Rs 636 bn
?
?
Sundrop Superlite is a 100% Sunflower oil
Market leader in the premium category of Refined Oils
Gemini
• Local manufacturer • Well developed distribution channels • Sizes that appeal to all the segments • Price Advantage • Large presence in the home as well as away from home markets • Strategic tie-ups
Saffola
• Recognizable brand name • Good Standing brands • Near Monopoly in the mindshare of the Healthy Oil • Excellent customer loyalty
Fortune
• Manufacturer Adani Group is the market leader in edible oil market • Tie-ups with several hypermarkets • Currently growing at a rapid rate
?
There are two broad categories of Channel Arrangements ? Independent Channel Arrangement ? Dependent Channel Arrangement In Independent Channel Arrangement or “conventional” distribution arrangement, a channel member negotiates deals with others that do not result in binding relationships
In Dependent Channel Arrangements , also called “vertical marketing systems” , a channel member feels tied to one or more members of the distribution channel
?
?
?
Dependent Channel Arrangement can be further classified as ? Corporate -> supplier operates its own distribution system in a manner that produces an integrated channel e.g. Starbucks ? Contractual -> a legal document obligates members to agree on how a product is distributed • Wholesaler-sponsored • Retailer-sponsored • Franchised ? Administrative -> a single member may dominate the decisions that occur within the channel e.g. Procter & Gamble, Wal-Mart
?
Distribution strategy can be shaped by how decisions are made in other marketing areas
? Product Issues
The nature of the product often dictates the distribution options available especially if the product requires special handling
? Promotion Issues
Distribution decisions are affected by the type of promotional activities needed to sell the product to customers
? Pricing Issues
The desired price at which a marketer seeks to sell their product can impact how they choose to distribute
? Target Market Issues -> A key decision in setting up a
channel arrangement is for the marketer to choose the approach that reaches customers in the most effective way possible
Distribution Mapping
Cities
Rural/Upcountry Markets
High Frequency Stores
Modern Trade Outlets
Large no. of Outlets
Fewer Outlets
High Frequency Stores
Manufacturing Plant (Hyderabad)
5 % Margin
Clearing and Forwarding Agent Clearing and Forwarding Agent Clearing and Forwarding Agent
Distributor's Depot
Distributor's Depot
8 % Margin
High Frequency Stores
High Frequency Stores
Modern Trade Outlets (Large no. of Outlets)
Manufacturing Plant (Hyderabad)
Maintained and controlled by retail owner
Central warehouse
Retail Outlet (e.g. Reliance)
Retail Outlet
Retail Outlet
12 % Margin
Modern Trade Outlets (Fewer Outlets)
Manufacturing Plant (Hyderabad)
AgroTech’s exclusive distributors
12 % Margin
Distributors
Retail Outlet (e.g. Big Bazaar)
Retail Outlet
Retail Outlet
Manufacturing Plant (Hyderabad)
5 % Margin
C&F Agent
Distributors
3 % Margin
5 % Margin
Wholesalers
Rural or Upcountry Retailers
?
Arises due to the notion that sales can grow if the marketer expands distribution by adding additional resellers. Channel strategy designed to expand product distribution may in fact do the opposite if existing members feel there is a conflict in the decisions made by the marketer If existing members sense a conflict and feel the marketer is not sensitive to their needs they may choose to stop handling the marketer’s products
?
?
4 % Margin
13 % Margin
12 % Margin
? Store owners reluctant to stock Sundrop due to high price ? Gemini Sunflower Oil is the dominant brand in Pune ? No dedicated distributor for Sundrop Oil in Pune
? Largely distributed and stocked in Mumbai
? Company Appointed Distributor – R Shantilal Traders,
Masjid Bunder, Mumbai
?
? ?
Located in Bhiwandi, Mumbai
Owned by Sneha Agencies since 1997 First ISO 9001:2000 certified CFA of Western India by BSI Management Systems Serving entire M.P. and Maharashtra
?
?
Warehouse of 25000 sq. fts. with 'A' class RCC construction and able to provide any required space at any time
All warehouses are well identified through marking and display boards
?
?
For Safety purpose, adequate safety measures have been ensured as per requirement
Having 19 registered transporters to serve even micro interiors in the state of Madhya Pradesh and Maharashtra For local transportation, has 3 three-wheelers and a Matador Warehousing and liasoning services at Pithampur also for industries like Eicher Motors Ltd., Bajaj Tempo Ltd., Hindustan Motors Ltd. etc.
?
?
?
Thank You!
doc_228576996.pptx
The PPT is explains on distribution channels for SUndrop Sunflower Oil.
?
? ?
India - World's fourth largest edible oil economy
Annual consumption of around 11.5mn tonnes Size of the edible oil market is estimated at Rs 636 bn
?
?
Sundrop Superlite is a 100% Sunflower oil
Market leader in the premium category of Refined Oils
Gemini
• Local manufacturer • Well developed distribution channels • Sizes that appeal to all the segments • Price Advantage • Large presence in the home as well as away from home markets • Strategic tie-ups
Saffola
• Recognizable brand name • Good Standing brands • Near Monopoly in the mindshare of the Healthy Oil • Excellent customer loyalty
Fortune
• Manufacturer Adani Group is the market leader in edible oil market • Tie-ups with several hypermarkets • Currently growing at a rapid rate
?
There are two broad categories of Channel Arrangements ? Independent Channel Arrangement ? Dependent Channel Arrangement In Independent Channel Arrangement or “conventional” distribution arrangement, a channel member negotiates deals with others that do not result in binding relationships
In Dependent Channel Arrangements , also called “vertical marketing systems” , a channel member feels tied to one or more members of the distribution channel
?
?
?
Dependent Channel Arrangement can be further classified as ? Corporate -> supplier operates its own distribution system in a manner that produces an integrated channel e.g. Starbucks ? Contractual -> a legal document obligates members to agree on how a product is distributed • Wholesaler-sponsored • Retailer-sponsored • Franchised ? Administrative -> a single member may dominate the decisions that occur within the channel e.g. Procter & Gamble, Wal-Mart
?
Distribution strategy can be shaped by how decisions are made in other marketing areas
? Product Issues
The nature of the product often dictates the distribution options available especially if the product requires special handling
? Promotion Issues
Distribution decisions are affected by the type of promotional activities needed to sell the product to customers
? Pricing Issues
The desired price at which a marketer seeks to sell their product can impact how they choose to distribute
? Target Market Issues -> A key decision in setting up a
channel arrangement is for the marketer to choose the approach that reaches customers in the most effective way possible
Distribution Mapping
Cities
Rural/Upcountry Markets
High Frequency Stores
Modern Trade Outlets
Large no. of Outlets
Fewer Outlets
High Frequency Stores
Manufacturing Plant (Hyderabad)
5 % Margin
Clearing and Forwarding Agent Clearing and Forwarding Agent Clearing and Forwarding Agent
Distributor's Depot
Distributor's Depot
8 % Margin
High Frequency Stores
High Frequency Stores
Modern Trade Outlets (Large no. of Outlets)
Manufacturing Plant (Hyderabad)
Maintained and controlled by retail owner
Central warehouse
Retail Outlet (e.g. Reliance)
Retail Outlet
Retail Outlet
12 % Margin
Modern Trade Outlets (Fewer Outlets)
Manufacturing Plant (Hyderabad)
AgroTech’s exclusive distributors
12 % Margin
Distributors
Retail Outlet (e.g. Big Bazaar)
Retail Outlet
Retail Outlet
Manufacturing Plant (Hyderabad)
5 % Margin
C&F Agent
Distributors
3 % Margin
5 % Margin
Wholesalers
Rural or Upcountry Retailers
?
Arises due to the notion that sales can grow if the marketer expands distribution by adding additional resellers. Channel strategy designed to expand product distribution may in fact do the opposite if existing members feel there is a conflict in the decisions made by the marketer If existing members sense a conflict and feel the marketer is not sensitive to their needs they may choose to stop handling the marketer’s products
?
?
4 % Margin
13 % Margin
12 % Margin
? Store owners reluctant to stock Sundrop due to high price ? Gemini Sunflower Oil is the dominant brand in Pune ? No dedicated distributor for Sundrop Oil in Pune
? Largely distributed and stocked in Mumbai
? Company Appointed Distributor – R Shantilal Traders,
Masjid Bunder, Mumbai
?
? ?
Located in Bhiwandi, Mumbai
Owned by Sneha Agencies since 1997 First ISO 9001:2000 certified CFA of Western India by BSI Management Systems Serving entire M.P. and Maharashtra
?
?
Warehouse of 25000 sq. fts. with 'A' class RCC construction and able to provide any required space at any time
All warehouses are well identified through marking and display boards
?
?
For Safety purpose, adequate safety measures have been ensured as per requirement
Having 19 registered transporters to serve even micro interiors in the state of Madhya Pradesh and Maharashtra For local transportation, has 3 three-wheelers and a Matador Warehousing and liasoning services at Pithampur also for industries like Eicher Motors Ltd., Bajaj Tempo Ltd., Hindustan Motors Ltd. etc.
?
?
?
Thank You!
doc_228576996.pptx