distribution managemen

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DISTRIBUTION MANAGEMENT


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Time Utility

Possession Utility

Place Utility


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DEFINITION

The management of all the activities which facilitatesmovement & co-ordination of supply and demand in thecreation of time & place utility in goods.

The art and science of determining requirements,acquiring them, distributing them and finally maintainingthem in an operationally ready condition for their entirelives.

Broad range of activities concerned with the efficientmovement of finished products from the end of the

production line to the consumer.


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The Distribution Functions

SALES SPECIALISTFOR PRODUCERS

Provides marketinformation

Interprets consumers

wants Promotes producers

products Creates assortments Stores products

Negotiates withcustomers Provides financing Owns products Shares risks

INTERMEDIAR

Y

PURCHASING AGENTFOR BUYERS

Anticipates wants Subdivides large

quantities of aproduct Stores products Transports products Creates assortments Provides financing Makes products

readily available Guarantees products Shares risks


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ROLE OF DISTRIBUTION CHANNELS

Spatial Temporal Break Bulk

Assortment Financial support


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TYPES OF MARKETING CHANNELS


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Distribution Channel Of Parle G


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COMPANY PROFILE

Parle products has been Indias largest manufacturer of biscuits and confectionaries, for almost 80 years.Since 1971 Parle has 40% share of total biscuit market

and 15% share of total confectionary market in India,Parle has grown to become a multi million dollar company.In 1929 a small company by the name of Parle productsemerged in British dominated India.


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Cont.

A Small factory was set up in suburbs of Mumbai, tomanufacture sweets and toffees .Except Mumbai and Bangalore, Parle also has large

plants in Bahadurgarh , Haryana & Neemrana,Rajasthan.The Parle has 89 Plants in India which manufactureParle G.9 of these are mother plants & rest 80 are subsidiaries.


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PRODUCT RANGE

Biscuits Parle GMilk ShaktiParle - MagixKrackjack MonacoDigestive MarieHide & Seek

Confectionary Melody Mango bite Poppins Kismi Toffee Orange Candy Must Bites


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Intro to Parle-G

Parle G has been a strong household name acrossIndia.A cream colored yellow stripped wrapper with a cute

baby photo containing 10 12 biscuits with thecompanys name printed in Red and you know these areParle G biscuits.The great taste, high nutrition, and the internationalquality, makes Parle- G a winner.Times changed, variety of biscuits did come and go butnothing has changed with these biscuits.It has been the undisputed leader in the biscuit category

for decades .


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Distribution Channel

The Parle-G distribution network has three levels asenlisted below;

1. Factory

2. Parle Depot3. Distributor 4. Retailer


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Distribution Channel

Factory

Parle Depot

Distributor

Retail Chain


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Factory

79 Factories all over India manufacturing Parle G9 out of them are owned by the Co. and the rest aresubsidiaries.

Production & Dispatch of Parle G is 200 MT/ unit per day.Daily production capacity is 80 MT per shift.12 min. for manufacturing a single packet of Parle G

from mixing to packaging.Team of 750 dedicated people in a single unitmanufacturing Indias Fav. Glucose Biscuit.


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Contd.

Material then is dispatched to various DistributionHubs, which then is sold to other people down the

distribution channel.Team of 750 dedicated people in a single unitmanufacturing Indias Fav. Glucose Biscuit.


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Parle Depot

There are 4 depots in Mumbai viz:Panvel Vasai-Borivali-Bhiwandi.Purchase order is placed in factory according to the

necessity.On daily basis, 10-12 trucks are loaded & unloaded.There are 30-35 distributors under each depot in their network .


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Distributor

A distributor covers retailers in the radius of 15 - 18km.There are 450 500 retailers under each distributor.

Each distributors purchase order on monthly basis is 25 30 lacs.The profit margin is approx 4%.

Mode of transport is trucks.


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Retailers

A retailer orders on weekly basis according toconsumption.His profit margin is 6-8%.

Parle-G is available in different quantity costing Rs2,Rs 4, Rs5, Rs10, Rs20, Rs40 and Rs50.

The mode of communication between retailer and

distributor is telephonic.The mode of transport is mini-autos and tempos .


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PLACES WHERE PARLE

PRODUCTS ARE AVAILABLEKirana /General storesTea shopsRailway station

Places where the cultural programmes of villages are being organized.

distribution managemen

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