Sunday, 17 August 2014

Distribution Channels

According to american marketing associationdistribution is 1. (economic definition) A study of how factors of production are priced in the market place, i.e., the de-termination of rents, wages, interest, and profits. 2. (marketing definition) The marketing and carrying of products to consumers. 3. (business definition) The extent of market coverage.

According to american marketing associationchannel of distribution is an organized network (system) of agencies and institutions which in combination, perform all the functions required to link producers with end customers to accomplish the marketing task.

Marketing Flows In The Marketing Channel:

Consumer and Industrial Marketing Levels:





FOR MTR READY-TO-EAT

  • Initially the distribution chain wasn't scientifically mapped out. Distribution was random and based on gut-feel. MTR was in 200 towns in the East and North where the brand had no equity.
  • Adoption of a two-pronged distribution strategy “In the North, West and East, we’ve strengthened our distribution network in the top 100 cities and towns and have shut down (operations) in 70-80 towns. Simultaneously increased presence in South India where the brand is virtually a household name." says Jyotiroop Barua, Vice-President, Sales and Distribution. (www.outlookbusiness.com)
  • MTR is focussing on "distribution push & advertising pull" to make its presence felt.
  • Also, the consumer base for its RTE range is mostly the urban and suburban markets. So distribution is also concentrated to cities and larger towns.
  • Type of distribution intensity- Intensive in Selective areas

5 comments:

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    Regards
    Ashwani
    Amritsar(8264897189)
    Punjab (143001)
    India

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