Distribution Channel And Sales Management of Diff. Companies

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2 Introduction

•German multinational company

•Largest sportswear manufacture in Germany and Europe

•Second biggest sportswear and manufacture in the world.

•Founder Adolf Dassler

•First sport shoe was made in 1920’s

•‘ADI’- ‘DAS’

•1960’s apparel and ball production.

The distribution strategy of Adidas can be summarized in a simple concept :The aim is to be as close as possible to the final consumer.

After having analyzed the purchase process of their clients, they came to the conclusion that the interactive experience and the availability, convenience and the size of products offering are the main keys to a successful distribution strategy.

As a consequence, they decided to follow to main objectives: • To expand the “controlled space” (own retail business, exclusive retailers, joint ventures, co-branded stores with organization or other brands).

• To improve the retail relationship

The final goal is to increase the level of brand control, i.e. to make sure that the product offering fits the consumers’ expectations and that the presentation is.

Distribution Strategy

The place refers to where you can expect to locate your customer and consequently, where the sale is actualized. By acquainting this place, we have to look for a distribution channel in order to reach the potential customer.

Adidas follow Two-Tier Distribution

Adidas outlets.Online purchasing through the Internet (E-commerce)

Place/Distribution Channel

Manufacture

Retailers

CustomersR.K.

Strengths:

•Brand recognition of the product it’s well reputed.•High quality products.•Provides a diverse range of products (shoes, bags, shirts, perfumes, toiletries etc)•Obeys environmental laws (Adidas has never been accused for pollution)•Employees’ rights are safeguarded by Adidas’ policies and management.

Weaknesses:

•Online stores are offered only to the USA or some locations of Europe.•Customer centers are not totally functional (Problems are faced especially in the case of e-marketing)•Price is interwoven to high quality.

SWOT Analysis

6Opportunities:

•Possibility of outsourcing the web development and e-commerce/marketing to a third party.•Growing market for sports apparel.•Joint Venture with fashion designer Stella McCartney increases the female participation in athletics.

Threats:

•Instable economic environment•Competition in supply chain management level•Nike’s strong reputation in sports industry

7 Sales Team Visiting to Retail outlets

1. Each and Every month visits are made by the sales officials.

2. Every 6 months, Seminars are conducted in which comparison with competitors is done.

8 Comparison

1. The firm has a rigid competition in the Indian market. Right now, Nike is the leading player in the industry.

2. Adidas has largest sales of Lowers ( Pyjamas ) all over the world.

3. Nike Introduced Air Max Shoe And for it competition Adidas got Energy Boost Shoe

Nike Adidas

Air Max Shoes (Running purpose) Energy Boost Shoes (Running purpose)

Increase in sales by 40% ( per year ) Increase in sales by 30% ( per year )

Offers -Buy 2 Get 1 Free Offers –50% Discount

9 Problems Faced

1. Delays - in delivering the product to different outlets and showrooms

2. Defected Pieces – Many a times faulty products are send to outlets & Showrooms.For which the employee/outlet staff click the photos of the defected pieces and then send photos to the customer care.

10 Incentives

Benefits provided to the employees on the following basis :

If the total sales goes 85% & more, then they provide 1% or 1.25% bonus to their employees.

( As every 3 months stock changes )

Adidas ( E-Commerce )

That is, the online store for selling its products.

The billing done by adidas for online stores are different from the retail outlet stores/showrooms.

12 Mc Donald’s History

It started as a drive-in-restaurant in the late 1940’s.

In 1966, McDonald’s was listed on the New York Stock Exchange.

In June 1967, McDonald’s opened its first restaurant outside U.S in Canada.

In 1996, McDonald’s entered India in a joint venture.

LOCATION

Tier 1 Cities

• Big family size restaurants

• High density marketplaces

• Shopping Malls

• Railway Stations/Metro Stations

Tier 2 Cities

• National Highways (Drive In’s)

CHANNELS

• Franchise Model

• Company Owned Flagship Outlets Coverage

15 DISTRIBUTION CHANNEL OF Mc Donald’s

McDonald’s Distribution Channel is based on the three-legged stool concept:

SUPPLIERS

COMPANY

FRANCHISEES

SUPPLIERS OF

Mc Donald’s

1. AMRIT FOOD

Coffee Milkshakes Dairy Mixes SoftServe Mixes

(All types of Milk products)

18 2. TRIKAYA AGRICULTURE

Iceberg Lettuce Salads Onions Potatoes

( All types of Veggies)

19 3. CREMICA AND MR. BECTOR FOODS

Mayonnaise

Cheese

Sauces

Batter

( All types of liquid condiments)

20 4.VISTA PROCESSED FOODS Pvt. Ltd

Chicken

( All types of Non-Veg products)

5. SOFT DRINKS SUPPLIERS CocaCola

Mrinda

ThumbsUp

Sprite

21 AGENCY INVOLVED IN DELIVERY

Radha Krishna Foodland

FREQUENCY OF SUPPLIES

Weekly two times supply of products.

Especially four times weekly supply of buns because they are highly perishable.

22 COMPETITORS OF Mc Donald’s

Subway

Pizza Hut

Dominos

Burger King

23 COMPARISON WITH THE COMPETITORS

Guest Count

Quality

Control of waste

Service

Speed of delivery

24 MARGINS AND INCENTIVES

PROFIT MARGIN Raw waste control

Reduction of over-time payments (not more than 8 working hours)

INCENTIVES Increment starts in April every year

Bonus is based on Gradings, Points and Personal Performance

25 COMPLAINTS AND ISSUES

FOOD COMPLAINTS

Daily customer problems (i.e. 1 or 2 problems per Day)

RAW WASTE COMPLAINTS (once in a Week)

DELIVERY COMPLAINTS (once in a Month)

TECHNICAL ISSUES

26 UNDERSTANDING THE PROBLEMS

Monthly meetings ( held at the end of every Month)

Raw waste control ( follow up the procedure and policies provided by the Mc Donald’s Headoffice)

Strategies and skills to tackle the customer problems on daily basis

28 Introduction

•One of the leading manufacturers, wholesale suppliers, distributors and exporters of houseware products across the globe.

•Inception in 1972.

•Milton is a trusted name across India and enjoys a steadily growing brand loyalty.

•Today, it has become a pride of every home across India and other global destinations.

•Milton is a Brand of Hamilton Pvt. Ltd.

29 Distribution Channel

Manufacture

Distributor

Retailers

Customers

Three -Tier Distribution

30 Sales Team Visiting to Distributor

Once or twice in a month visits are made.

Conference meetings are held once in a year with the distributors.Region wise conference meetings are held.

31 Competitors

Major Competitors are :

Nayasa

Cello Houseware Pvt.Ltd.

32 Problem Faced

At Each level problems are faced from retailer to distributorAnd only manufacturing defect in product is replaced.

A Manufacturing defect in a product with the retailer is replaced by the distributor and similarly the manufacturing department replaces for the distributor.

It is a opposite cycle in which the product recevied.

33 Incentives

Incentives are provided on each level.That is,

At retail level they get bonus in terms of extra quantity with bulk purchase.For example – Take 1000 items get 70 items free.

At Distributor level incentives are given on completing a particular target of sales.Incentive might be huge discount, offering a ticket to foreign country(any) with respect to sales made etc

34 Presented By :-

Vaishali

Vidushi

Rohit Kochhar

Made By : Rohit Kochhar