Description
In mathematical analysis, distributions (or generalized functions) are objects that generalize functions. Distributions make it possible to differentiate functions whose derivatives do not exist in the classical sense. In particular, any locally integrable function has a distributional derivative. Distributions are widely used to formulate generalized solutions of partial differential equations. Where a classical solution may not exist or be very difficult to establish, a distribution solution to a differential equation is often much easier.
Types of distribution methods
Intensive Categories FMCG,low end mobiles, OTC drugs,etc 50-100 metres Huge Selective Apparels,watches,shoes, consumer electronics, FMCDs,etc 1 -2 kms Medium Metros: 5-10 kms radius or entire city Semi Urban: 5-10 districts Thin Entire city/state/zone Speciality Luxury watch, luxury car, NA
Ideal Product avlb. radius Sales force Size
Territory covered per Metros : 3-4 kms sales executive/person radius Semi urban:10 kms radius Rural: 5-10 villages Stock Monitoring Frequency General distribution arrangement Free riding situation Daily/weekly
weekly/monthly
monthly/yearly
Non-exclusive Generally does not not occur
Exclusive/Non-exclusive Usually occurs
Exclusive Not possible
Intensive Cost of sales operation High Margin structure Low to Medium (10 25%)
Selective Medium Medium to High (1525%)
Speciality Low Medium to High (20-25%)
Advertising spends Promotional support given by dealer
Very High Low
Medium to High Medium
1 month to 5/7 years
Low to Medium Very High
Once a year or extended time frame NA
Frequency of purchase Daily/weekly
Replenishment lead time
Few hours to max 1 day
1 day to 1 week
Channel Information Systems (CIS)
The purpose of channel information systems is to collect and analyze data about the operations of sales channels to assess its performance and take corrective timely action to continuously improve performance of the company. It also involves gathering market information about competition, statutory matters, market environment,etc
Elements of channel information system
1) Distributor Profiles and database 2) Market information: Peak/Low season, growth rate,consumer behaviour, etc 3) Sales Primary and secondary data for each category/product/SKU for: a) volume and value sales b) market share vis a vis competition 4) Inventory status 5) a) b) c) d) e) 6) 7) 8) 9) Competition tracking Launch of new products Price changes in MRP/dealer rates Trade and consumer schemes In-store visibility Inventory status with channel partners Evaluation of Promotions done Distributor ROI Record statutory information like VAT,CST,Excise duty,etc as required Distributor’s payment record
Advantages of CIS
• Availability of relevant, reliable and current information for better marketing planning • Tapping new market opportunities • Trend analysis • Helps develop action plan for growth • Keeps marketing team aware regional disparities in consumer tastes, preferences and needs to fine tune marketing and promotional plans • Keeps sales team alert against threats from competition • Gather information which can affect company’s performance but is generally not available in public domain • Channel performance evaluation
doc_231044359.pptx
In mathematical analysis, distributions (or generalized functions) are objects that generalize functions. Distributions make it possible to differentiate functions whose derivatives do not exist in the classical sense. In particular, any locally integrable function has a distributional derivative. Distributions are widely used to formulate generalized solutions of partial differential equations. Where a classical solution may not exist or be very difficult to establish, a distribution solution to a differential equation is often much easier.
Types of distribution methods
Intensive Categories FMCG,low end mobiles, OTC drugs,etc 50-100 metres Huge Selective Apparels,watches,shoes, consumer electronics, FMCDs,etc 1 -2 kms Medium Metros: 5-10 kms radius or entire city Semi Urban: 5-10 districts Thin Entire city/state/zone Speciality Luxury watch, luxury car, NA
Ideal Product avlb. radius Sales force Size
Territory covered per Metros : 3-4 kms sales executive/person radius Semi urban:10 kms radius Rural: 5-10 villages Stock Monitoring Frequency General distribution arrangement Free riding situation Daily/weekly
weekly/monthly
monthly/yearly
Non-exclusive Generally does not not occur
Exclusive/Non-exclusive Usually occurs
Exclusive Not possible
Intensive Cost of sales operation High Margin structure Low to Medium (10 25%)
Selective Medium Medium to High (1525%)
Speciality Low Medium to High (20-25%)
Advertising spends Promotional support given by dealer
Very High Low
Medium to High Medium
1 month to 5/7 years
Low to Medium Very High
Once a year or extended time frame NA
Frequency of purchase Daily/weekly
Replenishment lead time
Few hours to max 1 day
1 day to 1 week
Channel Information Systems (CIS)
The purpose of channel information systems is to collect and analyze data about the operations of sales channels to assess its performance and take corrective timely action to continuously improve performance of the company. It also involves gathering market information about competition, statutory matters, market environment,etc
Elements of channel information system
1) Distributor Profiles and database 2) Market information: Peak/Low season, growth rate,consumer behaviour, etc 3) Sales Primary and secondary data for each category/product/SKU for: a) volume and value sales b) market share vis a vis competition 4) Inventory status 5) a) b) c) d) e) 6) 7) 8) 9) Competition tracking Launch of new products Price changes in MRP/dealer rates Trade and consumer schemes In-store visibility Inventory status with channel partners Evaluation of Promotions done Distributor ROI Record statutory information like VAT,CST,Excise duty,etc as required Distributor’s payment record
Advantages of CIS
• Availability of relevant, reliable and current information for better marketing planning • Tapping new market opportunities • Trend analysis • Helps develop action plan for growth • Keeps marketing team aware regional disparities in consumer tastes, preferences and needs to fine tune marketing and promotional plans • Keeps sales team alert against threats from competition • Gather information which can affect company’s performance but is generally not available in public domain • Channel performance evaluation
doc_231044359.pptx