VARIABLES VARIABLES AFFECTING AFFECTING

DISTRIBUTIONDISTRIBUTION

VARIABLE 1VARIABLE 1

NUMBER OF CONSUMERSNUMBER OF CONSUMERS

IMPACT OF VARIABLEIMPACT OF VARIABLE

LARGER THE NUMBER, MORE IS THE LARGER THE NUMBER, MORE IS THE NECESSITY TO USE INTERMEDIARIES.NECESSITY TO USE INTERMEDIARIES.

THE CHANNEL MAY, THUS, HAVE THE CHANNEL MAY, THUS, HAVE MANY LAYERS.MANY LAYERS.

TRANSPORTATION & LOGISTICS NEED TRANSPORTATION & LOGISTICS NEED TO BE WELL ORGANISED.TO BE WELL ORGANISED.

VARIABLE 2VARIABLE 2

GEOGRAPHIC DISPERSION OF GEOGRAPHIC DISPERSION OF CONSUMERS.CONSUMERS.

IMPACTIMPACT

HIGHER THE DISPERSION, MORE IS THE HIGHER THE DISPERSION, MORE IS THE NECESSITY FOR INTERMEDIARIES, NECESSITY FOR INTERMEDIARIES, LIKELY TO BE IN SEVERAL LAYERS.LIKELY TO BE IN SEVERAL LAYERS.

TRANSPORT AND LOGISTICS NEED TO TRANSPORT AND LOGISTICS NEED TO BE WELL ORGANISED.BE WELL ORGANISED.

VARIABLE 3VARIABLE 3

HIGHER FREQUENCY OF PURCHASE.HIGHER FREQUENCY OF PURCHASE.

IMPACTIMPACT

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

VARIABLE 4VARIABLE 4

TENDENCY TO POSTPONE PURCHASE.TENDENCY TO POSTPONE PURCHASE.

IMPACTIMPACT

REGULAR REINFORCEMENT.REGULAR REINFORCEMENT. FIELD FORCE BECOME CRITICAL.FIELD FORCE BECOME CRITICAL. ATTEMPT BY MARKETER TO USE ATTEMPT BY MARKETER TO USE

“EXPERTS” AS FIELD FORCE – LIKE “EXPERTS” AS FIELD FORCE – LIKE BANCASSURANCE, NETWORK BANCASSURANCE, NETWORK MARKETING.MARKETING.

VARIABLE 5VARIABLE 5

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

IMPACTIMPACT

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

VARIABLE 6VARIABLE 6

DEGREE OF BRAND LOYALTY.DEGREE OF BRAND LOYALTY.

IMPACTIMPACT

MARGINS TO CHANNEL MEMBER / MARGINS TO CHANNEL MEMBER / FIELD FORCE.FIELD FORCE.

IMPORTANCE OF POINT OF SALE IMPORTANCE OF POINT OF SALE MERCHANDISING.MERCHANDISING.

VARIABLE 7VARIABLE 7

PURCHASED ON IMPULSE.PURCHASED ON IMPULSE.

IMPACTIMPACT

IMPORTANCE OF AVAILABILITY.IMPORTANCE OF AVAILABILITY. ERGO, TRANSPORTATION AND ERGO, TRANSPORTATION AND

LOGISTICS BECOME CRITICAL.LOGISTICS BECOME CRITICAL.

VARIABLE 8VARIABLE 8

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

IMPACTIMPACT

HIGHER THE LOI, THE LOWER THE HIGHER THE LOI, THE LOWER THE IMPORTANCE OF AVAILABILITY.IMPORTANCE OF AVAILABILITY.

SUPPLY OF INFORMATION BECOMES SUPPLY OF INFORMATION BECOMES IMPORTANT AS CONSUMER GOES IMPORTANT AS CONSUMER GOES THROUGH ELABORATE INFORMATION THROUGH ELABORATE INFORMATION SEARCH.SEARCH.

VARIABLE 9VARIABLE 9

PURCHASED AS A “BASKET OF PURCHASED AS A “BASKET OF GOODS”.GOODS”.

IMPACTIMPACT

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

VARIABLE 10VARIABLE 10

SPEED AND COMPLEXITY OF DECISION SPEED AND COMPLEXITY OF DECISION MAKING PROCESS.MAKING PROCESS.

IMPACTIMPACT

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

VARIABLE 11VARIABLE 11

PRESENCE OF EXPERT INFLUENCER IN PRESENCE OF EXPERT INFLUENCER IN THE DECISION MAKING PROCESS.THE DECISION MAKING PROCESS.

IMPACTIMPACT

ROLES OF FIELD FORCE VARY. HENCE, ROLES OF FIELD FORCE VARY. HENCE, SOME HAVE TWO SETS OF FIELD SOME HAVE TWO SETS OF FIELD FORCE.FORCE.

IN PRODUCTS WHERE THERE IS A IN PRODUCTS WHERE THERE IS A TENDENCY TO POSTPONE PURCHASE, TENDENCY TO POSTPONE PURCHASE, THE MARKETER TRIES TO INSERT THE MARKETER TRIES TO INSERT EXPERTS AS FIELD FORCE. EXAMPLE: EXPERTS AS FIELD FORCE. EXAMPLE: BANCASSURANCE.BANCASSURANCE.

VARIABLE 12VARIABLE 12

ELEMENT OF CRISIS PURCHASE EXISTS.ELEMENT OF CRISIS PURCHASE EXISTS.

IMPACTIMPACT

AVAILABILITY BECOMES CRITICAL.AVAILABILITY BECOMES CRITICAL.

VARIABLE 13VARIABLE 13

ELEMENT OF RISK AVERSION EXISTS.ELEMENT OF RISK AVERSION EXISTS.

IMPACTIMPACT

CHANNEL MEMBER CAN “UNSELL” A CHANNEL MEMBER CAN “UNSELL” A BRAND.BRAND.

QUALITY OF FIELD FORCE.QUALITY OF FIELD FORCE.

VARIABLE 14VARIABLE 14

PERISHABILITY.PERISHABILITY.

IMPACTIMPACT

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

VARIABLE 15VARIABLE 15

TIME BAND ASSOCIATED WITH THE TIME BAND ASSOCIATED WITH THE PURCHASE OF THE PRODUCT.PURCHASE OF THE PRODUCT.

IMPACTIMPACT

VERY HIGH TRANSPORTATION AND VERY HIGH TRANSPORTATION AND INFRASTRUCTURE REQUIREMENTS INFRASTRUCTURE REQUIREMENTS NEEDED FOR THE LAST MILE.NEEDED FOR THE LAST MILE.

POSSIBILITY OF IDLE CAPACITY USAGE POSSIBILITY OF IDLE CAPACITY USAGE EXISTS.EXISTS.

VARIABLE 16VARIABLE 16

FUNGIBILITY.FUNGIBILITY.

IMPACTIMPACT

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

VARIABLE 17VARIABLE 17

DEGREE OF CUSTOMIZATION DEGREE OF CUSTOMIZATION POSSIBLE.POSSIBLE.

IMPACTIMPACT

FIELD FORCE BECOMES CRITICAL.FIELD FORCE BECOMES CRITICAL. BEYOND A POINT, IT MAY REPLACE BEYOND A POINT, IT MAY REPLACE

THE CHANNEL.THE CHANNEL.

VARIABLE 18VARIABLE 18

NEGATIVE OR POSITIVE REINFORCING?NEGATIVE OR POSITIVE REINFORCING?

IMPACTIMPACT

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

VARIABLE 19VARIABLE 19

VALUE/VOLUME RATIO OF THE VALUE/VOLUME RATIO OF THE PRODUCT.PRODUCT.

IMPACTIMPACT

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