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VARIABLES AFFECTING DISTRIBUTION. VARIABLE 1 NUMBER OF CONSUMERS NUMBER OF CONSUMERS.

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Presentation on theme: "VARIABLES AFFECTING DISTRIBUTION. VARIABLE 1 NUMBER OF CONSUMERS NUMBER OF CONSUMERS."— Presentation transcript:

1 VARIABLES AFFECTING DISTRIBUTION

2 VARIABLE 1 NUMBER OF CONSUMERS NUMBER OF CONSUMERS

3 IMPACT OF VARIABLE LARGER THE NUMBER, MORE IS THE NECESSITY TO USE INTERMEDIARIES. LARGER THE NUMBER, MORE IS THE NECESSITY TO USE INTERMEDIARIES. THE CHANNEL MAY, THUS, HAVE MANY LAYERS. THE CHANNEL MAY, THUS, HAVE MANY LAYERS. TRANSPORTATION & LOGISTICS NEED TO BE WELL ORGANISED. TRANSPORTATION & LOGISTICS NEED TO BE WELL ORGANISED.

4 VARIABLE 2 GEOGRAPHIC DISPERSION OF CONSUMERS. GEOGRAPHIC DISPERSION OF CONSUMERS.

5 IMPACT HIGHER THE DISPERSION, MORE IS THE NECESSITY FOR INTERMEDIARIES, LIKELY TO BE IN SEVERAL LAYERS. HIGHER THE DISPERSION, MORE IS THE NECESSITY FOR INTERMEDIARIES, LIKELY TO BE IN SEVERAL LAYERS. TRANSPORT AND LOGISTICS NEED TO BE WELL ORGANISED. TRANSPORT AND LOGISTICS NEED TO BE WELL ORGANISED.

6 VARIABLE 3 HIGHER FREQUENCY OF PURCHASE. HIGHER FREQUENCY OF PURCHASE.

7 IMPACT THE HIGHER THE FREQUENCY OF PURCHASE, MORE IS THE TRANSPORT INTENSITY IN THE “LAST MILE”. THE HIGHER THE FREQUENCY OF PURCHASE, MORE IS THE TRANSPORT INTENSITY IN THE “LAST MILE”.

8 VARIABLE 4 TENDENCY TO POSTPONE PURCHASE. TENDENCY TO POSTPONE PURCHASE.

9 IMPACT REGULAR REINFORCEMENT. REGULAR REINFORCEMENT. FIELD FORCE BECOME CRITICAL. FIELD FORCE BECOME CRITICAL. ATTEMPT BY MARKETER TO USE “EXPERTS” AS FIELD FORCE – LIKE BANCASSURANCE, NETWORK MARKETING. ATTEMPT BY MARKETER TO USE “EXPERTS” AS FIELD FORCE – LIKE BANCASSURANCE, NETWORK MARKETING.

10 VARIABLE 5 LEVEL OF FAMILIARITY/KNOWLEDGE ABOUT THE PRODUCT (OF THE BUYER). LEVEL OF FAMILIARITY/KNOWLEDGE ABOUT THE PRODUCT (OF THE BUYER).

11 IMPACT THE HIGHER THE FAMILIARITY, THE LOWER THE IMPORTANCE OF FIELD FORCE AND HIGHER THE IMPORTANCE OF THE CHANNEL. THE HIGHER THE FAMILIARITY, THE LOWER THE IMPORTANCE OF FIELD FORCE AND HIGHER THE IMPORTANCE OF THE CHANNEL.

12 VARIABLE 6 DEGREE OF BRAND LOYALTY. DEGREE OF BRAND LOYALTY.

13 IMPACT MARGINS TO CHANNEL MEMBER / FIELD FORCE. MARGINS TO CHANNEL MEMBER / FIELD FORCE. IMPORTANCE OF POINT OF SALE MERCHANDISING. IMPORTANCE OF POINT OF SALE MERCHANDISING.

14 VARIABLE 7 PURCHASED ON IMPULSE. PURCHASED ON IMPULSE.

15 IMPACT IMPORTANCE OF AVAILABILITY. IMPORTANCE OF AVAILABILITY. ERGO, TRANSPORTATION AND LOGISTICS BECOME CRITICAL. ERGO, TRANSPORTATION AND LOGISTICS BECOME CRITICAL.

16 VARIABLE 8 LEVEL OF INVOLVEMENT (WHICH IS A FUNCTION OF COST OF THE PRODUCT). LEVEL OF INVOLVEMENT (WHICH IS A FUNCTION OF COST OF THE PRODUCT).

17 IMPACT HIGHER THE LOI, THE LOWER THE IMPORTANCE OF AVAILABILITY. HIGHER THE LOI, THE LOWER THE IMPORTANCE OF AVAILABILITY. SUPPLY OF INFORMATION BECOMES IMPORTANT AS CONSUMER GOES THROUGH ELABORATE INFORMATION SEARCH. SUPPLY OF INFORMATION BECOMES IMPORTANT AS CONSUMER GOES THROUGH ELABORATE INFORMATION SEARCH.

18 VARIABLE 9 PURCHASED AS A “BASKET OF GOODS”. PURCHASED AS A “BASKET OF GOODS”.

19 IMPACT WE HAVE TO BE AVAILABLE WHEREVER THE OTHER ELEMENTS OF THE BASKET ARE AVAILABLE. WE HAVE TO BE AVAILABLE WHEREVER THE OTHER ELEMENTS OF THE BASKET ARE AVAILABLE.

20 VARIABLE 10 SPEED AND COMPLEXITY OF DECISION MAKING PROCESS. SPEED AND COMPLEXITY OF DECISION MAKING PROCESS.

21 IMPACT LOWER THE SPEED AND HIGHER THE COMPLEXITY OF DECISION MAKING PROCESS, GREATER THE IMPORTANCE OF THE FIELD FORCE. LOWER THE SPEED AND HIGHER THE COMPLEXITY OF DECISION MAKING PROCESS, GREATER THE IMPORTANCE OF THE FIELD FORCE.

22 VARIABLE 11 PRESENCE OF EXPERT INFLUENCER IN THE DECISION MAKING PROCESS. PRESENCE OF EXPERT INFLUENCER IN THE DECISION MAKING PROCESS.

23 IMPACT ROLES OF FIELD FORCE VARY. HENCE, SOME HAVE TWO SETS OF FIELD FORCE. ROLES OF FIELD FORCE VARY. HENCE, SOME HAVE TWO SETS OF FIELD FORCE. IN PRODUCTS WHERE THERE IS A TENDENCY TO POSTPONE PURCHASE, THE MARKETER TRIES TO INSERT EXPERTS AS FIELD FORCE. EXAMPLE: BANCASSURANCE. IN PRODUCTS WHERE THERE IS A TENDENCY TO POSTPONE PURCHASE, THE MARKETER TRIES TO INSERT EXPERTS AS FIELD FORCE. EXAMPLE: BANCASSURANCE.

24 VARIABLE 12 ELEMENT OF CRISIS PURCHASE EXISTS. ELEMENT OF CRISIS PURCHASE EXISTS.

25 IMPACT AVAILABILITY BECOMES CRITICAL. AVAILABILITY BECOMES CRITICAL.

26 VARIABLE 13 ELEMENT OF RISK AVERSION EXISTS. ELEMENT OF RISK AVERSION EXISTS.

27 IMPACT CHANNEL MEMBER CAN “UNSELL” A BRAND. CHANNEL MEMBER CAN “UNSELL” A BRAND. QUALITY OF FIELD FORCE. QUALITY OF FIELD FORCE.

28 VARIABLE 14 PERISHABILITY. PERISHABILITY.

29 IMPACT THE DIMENSION OF “SPEED” IN THE TRANSPORTATION & LOGISTICS NETWORK ASSUMES GREAT IMPORTANCE. THE DIMENSION OF “SPEED” IN THE TRANSPORTATION & LOGISTICS NETWORK ASSUMES GREAT IMPORTANCE.

30 VARIABLE 15 TIME BAND ASSOCIATED WITH THE PURCHASE OF THE PRODUCT. TIME BAND ASSOCIATED WITH THE PURCHASE OF THE PRODUCT.

31 IMPACT VERY HIGH TRANSPORTATION AND INFRASTRUCTURE REQUIREMENTS NEEDED FOR THE LAST MILE. VERY HIGH TRANSPORTATION AND INFRASTRUCTURE REQUIREMENTS NEEDED FOR THE LAST MILE. POSSIBILITY OF IDLE CAPACITY USAGE EXISTS. POSSIBILITY OF IDLE CAPACITY USAGE EXISTS.

32 VARIABLE 16 FUNGIBILITY. FUNGIBILITY.

33 IMPACT CHANNEL MEMBER CAN BE REPLACED BY IT AS A CHANNEL. CHANNEL MEMBER CAN BE REPLACED BY IT AS A CHANNEL.

34 VARIABLE 17 DEGREE OF CUSTOMIZATION POSSIBLE. DEGREE OF CUSTOMIZATION POSSIBLE.

35 IMPACT FIELD FORCE BECOMES CRITICAL. FIELD FORCE BECOMES CRITICAL. BEYOND A POINT, IT MAY REPLACE THE CHANNEL. BEYOND A POINT, IT MAY REPLACE THE CHANNEL.

36 VARIABLE 18 NEGATIVE OR POSITIVE REINFORCING? NEGATIVE OR POSITIVE REINFORCING?

37 IMPACT SHOPPING “EXPERIENCE” BECOMES IMPORTANT (AMBIENCE ETC.) SHOPPING “EXPERIENCE” BECOMES IMPORTANT (AMBIENCE ETC.)

38 VARIABLE 19 VALUE/VOLUME RATIO OF THE PRODUCT. VALUE/VOLUME RATIO OF THE PRODUCT.

39 IMPACT TRANSPORT COST SENSITIVITY, ROI PER SQUARE CM FOR RETAILER. TRANSPORT COST SENSITIVITY, ROI PER SQUARE CM FOR RETAILER.


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