Distribution Decisions

Distributors:

Distributors are the institution through which availability of products is possible. Unilever’s

distributors have a very good relationship with them. And the important thing is that they must
integrate into total marketing mix because of time and money required to setup an efficient
channel.

Marketing Channels and Value Networks:

Thus, HUL follows a 3-Level Consumer distribution structure.

 

Importance of Marketing Channels:

Channels provide ease of distribution of the product of value to the consumers. They are the set of pathways a porduct or service follows after production. They are not created just to serve markets, Channels must be created to make markets.

 

The Role of Marketing Channels:

All channels have promotional material moving through them. The point wherein we can purchase along the channel is known as point of purchase.

 

The modern trade format comprises of the following three techniques:

Sales Promotion + Distribution + Personal Selling

 

Channels produce five service outputs,

 

1. Lot size - The no. of units one can purchase from the channel on one occasion.

2. Waiting and Delivery time - Fast delivery channels are preffered by consumers.

3. Spatial convenience - The degree to which the marketing channel makes it easier for customers to purchase products. HUL makes Surf available easily at various levels of the channel. Thus making it convenient to the consumers.

4. Product variety - The assortment provided by the channel creates a lot of choices for the consumer.

5. Service backup - Add-on services provided by HUL to provide greater service backup.