1. Distribution Strategies
Service Industry

2. Distribution
Is the availability and accessibility of a service to consumers
Implications for businesses
Increase technology
HR issues- hours of operations
Channel structure

3. Channel Structure Structure performs 4 functions Information provision
Booking/reservation/
Consumption->Payment
Payment->Consumption
Implications :What to own and what to lease

4. Channel Structure Direct Channel Indirect Channel
Completely own s the structure
Indirect Channel
Partly owned, partly through intermediaries
Eg:Airlines

5. Channel Options Exclusive Distribution Selective Distribution
Intensive Distribution
Multi channel Distribution

6. Channel Intermediary management
Advent of technology has introduced multi channel distribution.
Strategy has to choose between cost effectiveness and reach
Channel Squeeze effect on intermediaries is intense
*How should businesses re equip themselves in today’s multi channel structure?

7. Distribution Growth Strategy
New
Old
Multi Service Str
Diversification
Service offering
Current serv str
Multi site/Multi segment
Location/Mkt Segment
Old New

8. Multi Service Strategy
Adding peripheral services to core service model
Eg:Adding a spa to a beauty salon
Adding a watch repair center to the showroom

9. Service Diversification
Introducing a new Core service
Jet airways starting a hotel group

10. Benefits Multi Site: Multi Service Rapid Expansion Fast Sales growth
Relatively easy to manage
Multi Service
Serving current customers better
Can gain new customers
Sales growth without expanding to new facilities

11. Benefits… Multi Segment : Better utilization of current resources
Sales growth without expanding to new facilities

12. Expanding to International Markets
Direct Export
Using local resources to perform service abroad
Call centers
Joint Venture
Merger of local and foreign partner
Licensing
Selling licenses to use the brand name
Franchising
Sells franchise operations to local partners
FDI
Direct investment

13. Franchising
Franchisor
Franchisee
Advantages
Disadvantages

14. Deciding on Distribution Structure
Control decisions
Centralized or Decentralized
Economies of scale
Nature of business
Growth objectives
Capital Investment
HR issues

15. Distribution structure strategy and channel structure
Standard Chartered Bank
Jet Airways
Starbucks -US and globally
Amazon
Apollo Hospitals
Define core service, periphery service
Extensive or intensive
Structure