Professional Documents
Culture Documents
Mangal Communications
1849, Bhaskar Plaza,
Karve Road, Kothrud,
Pune -411039
Nature of Retailer
§ Electronics Showroom.
§ Vast range of Companies products to choose from.
§ Located at a Market place with good customer pull ability.
§ With a built-up space of 1000sq.feet. It employees 4 Salesmen, 1
Manager and 1 Receptionist.
§ Hours Open: 10:30am to 08:30pm (02:00pm to 3:30pm –
Lunch Break)
§ Weekly-Off on Sundays.
Various Company Products at the
Showroom
Television Micro-Wave
SAMSUNG
LG •SAMSUNG
ONIDA •LG
SONY
VIDEOCON
Refrigerator Air-Conditioners
SAMSUNG
LG •SAMSUNG
GODREJ •LG
•VIDEOCON
•PANASONIC
SAMSUNG
LG •SAMSUNG
WHIRLPOOL •LG
•VIDEOCON
•PANASONIC
Sales Volume
Product Segment Chosen for the study
TELEVISION: -
A ve ra g e M o n th ly S a le
Company Portable Ultra- Flat Screen LCD Plasma
Name
SAMSUNG 1-2 Slim
2-3 TV
3-4 Pieces Screens
3-4 Pieces TV
0-1 Piece
Pieces Pieces
LG 1-2 1-2 2-3 Pieces 2-3 Pieces 0-1 Piece
Pieces Pieces
Samsung: 12 Units LG: 9 Units
Price Margin
§ Reasons –
1. Not - Seasonal
For Ex:- Products like Refrigerator’s, Air-conditioners, Washing
Machine etc. are seasonal and thus are marketed accordingly.
2. Other products like Television, Micro-oven are marketed on the
festive moods, major national events, on the start of the Month
etc.
3. Done effectively through Schemes launched, Discount offers,
Additional features added.
4. Sponsoring Distributors and Retailers Showroom holdings helps to
enhance the Brand value.
MARKETING CHANNEL SYSTEMS
§ Marketing channel systems are the particular set of marketing
channels a firm employs, and decision about it are amongst
the most critical ones management faces
§
§ One of the chief roles - Convert potential buyers into profitable
customers
§
§ Must not just serve markets, they must also make markets
§
§ Channels chosen affect all other marketing decisions
§
§ Firm must decide between
§ Push Strategy Vs Pull Strategy
CHANNEL LEVELS
Distributo Wholesaler
r
Distributo
r
Margin : 50 % approx
Margin : 4 - 5 % approx
Margin : 5 – 7 . 5 % approx
Distributor
§ Acts as a link
§
§ Appointed by company
§
§ Distributor supplies the required products as per the Company Price
List.
§
§ Upto 15 days Credit given
§
§ Weekly visits by Salesman of Distributors for Product orders.
Retailer(Dealer)
§ Main link between the Distributor and the Customer.
§
§ Direct contact with the customer.
§
§ Sells the products on the MRP or less.
§
§ Margins for the Products ranges from 5- 7% respectively.
Relationship of the retailer with different parties
The owner has
a relation with others on the basis of:
1. Customers - Courteous
- Provides them with the right amount of
information
- Gives options as per their preferences
Expectations from the other party
Transport:
These Transportation costs are incurred form the
Customers itself
Physical Distribution (contd.)
§ Order Volume
§ Wholesalers
§ Retailers
§
§ Frequency
§ Transportation:
§ Age of Stocks / Inventory
Economics of Margins
Distributor:
Economics of Margins
Retailer:
1.
2. Price decided by the company
3. Retailer is free to sell the product as per his own wishes.
For Ex: if a Product’s MRP is Rs. 20,000. And the Dealer gets it
for Rs. 18,500 then, he is free to sell it for any amount from Rs.
18,500-20,000.
3. Many retailer sell a product on a profit margin of Rs. 500-1000 for
a Product who’s MRP is Rs. 20,000. Thus, these dealers are
Quantitative oriented.
4. Credit window upto 15 days from the day of Receipt but income is
immediate.
Sales Incentives
Commission Based: