Implementing Distribution Strategy In Your Organization PowerPoint Presentation Slides
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The document provides an overview of distribution strategies for organizations, including direct, indirect, and hybrid channels. It outlines the advantages and challenges of each distribution model, trends influencing these strategies, and partner selection criteria for effective implementation. Key insights include maximizing profit margins, enhancing customer experience, and addressing distribution logistics.
Implementing Distribution Strategy In Your Organization PowerPoint Presentation Slides
- 1. Yo u r C o m p a n y N a m e Implementing Distribution Strategy in your Organization
- 3. Direct Distribution Strategy Indirect Distribution Strategy Summary Three Most Common Distribution Channels › When to Use Direct Distribution? › Direct Channels- Benefits & Challenges Direct Channels › Hybrid Distribution- Advantages & Challenges Hybrid DistributionIndirect Channels › Indirect Distribution- Advantages & Disadvantages › When to Consider Indirect Distribution? Distribution Strategy Template Partner Selection Criteria & Assessment Partner Growth Goals Trends in Distribution Strategy 0 Table of Contents 33
- 4. Trends in Distribution Strategy 4 Hybrid becoming a popular channel (hotels might sell directly but also via travel agents) Internet is changing the distribution landscape. Enabling online direct distribution bringing in higher profit margins and more control over customer experience … to reach maximum consumers Companies using “Big Box” retailers like Three Distribution Models … are governing the way goods & services are reaching the end consumer Direct IndirectHybrid
- 5. Three Most Common Distribution Channels 5 Manufacturer supplies the goods directly to consumers without using any intermediaries › Retail outlets › Mail order selling › Internet selling Direct Manufacturer sells the goods to consumers through one or more middlemen › Retailers › Wholesalers › Agents/Brokers › Franchisees › Resellers Indirect Manufacturer sells the goods through multiple channels – own as well as 3rd party channels. › Own website › Own retail stores › Retailers & Wholesalers › Brokers & Distributors Hybrid
- 6. Direct Channels 6 Direct Channel Types- Distribution from factory gate Distribution by salesmen Distribution via the company showroom and retail outlets Online Marketing No middleman or intermediary; Supplier owns and manages all the resources in the value chain Direct selling to consumers This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
- 7. When to Use Direct Distribution? 7 Direct distribution is typically used when: Examples of Companies (Computer Business) Southwest Airlines or easyJet (low-cost airline business) (Securities) (Clothing) Buyers are easily identifiable Personal selling is a major component of the communication mix Organization has a wide variety of offerings for the target market Sufficient resources are available Intermediaries do not possess the capacity to service the requirements of target markets Intermediaries are not available for reaching target markets This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
- 8. Direct Channels - Benefits & Challenges With intermediary- Cost at Supplier Level $25 - Cost at Intermediary Level $50 - Cost for Consumer $100 – Profit Margin $50 Direct Channel- Cost at Supplier Level $25 - Cost for Consumer $100 - Profit margin $75 Increased profit margins Get your products to consumers faster Distinguish yourself from the competition The flexibility to reduce costs, say from $100 to $90, and still earn higher profit margins Reduced cost for consumer Better customer experience through direct interaction and customer insights 2 3 4 5 1 Challenges- Company will have to purchase trucks, hire drivers and rent storage space. Sizeable Costs Difficult to reach a very broad base of customers. The distributors have an established network. Limited Reach Benefits This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 8
- 9. Tier-1 ConsumerManufacturer Retailer Tier-2 ConsumerWholesaler RetailerManufacturer Tier-3 ConsumerAgent Wholesaler RetailerManufacturer Indirect Channels 9 › Companies often utilize indirect distribution to focus on their core competencies, while gaining access to customers by leveraging channel partners. › Consumer buys product from some intermediary such as wholesaler, retailer, dealer, etc. This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
- 10. Indirect Distribution - Advantages & Disadvantages 10 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Pros › Share shipping and storage costs › Make it easier for customers to find your products › Benefit from your third-party’s experience, infrastructure and salesforce › Avoid the complexity of managing distribution logistics › Puts distance between you and your customers. › By adding an intermediary, you are also increasing the amount of time it takes for your product to reach the buyer. › It’s also harder to establish brand loyalty when you are not interacting directly with your customer. Cons
- 11. PepsiCoca-cola Examples of Companies When to Consider Indirect Distribution? 11 Intermediaries can perform distribution functions more efficiently and less expensively Customers are hard to reach directly Organization does not have resources to perform distribution function This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
- 12. Hybrid Distribution 12 Examples of Companies following this model: When companies add new channels to existing ones, they follow the hybrid model. Companies earlier selling via a dealer are now also selling via their own website or retail stores i.e. added direct to indirect. Example - Apple Companies earlier selling via direct are now adding indirect channels such as dealers, value- added resellers, catalog operations, direct mail, and telemarketing i.e. added indirect to direct. Example – IBM. Such companies sell via direct channels as well as retailers. This gives advantages of both the models as you get the increased market coverage of indirect channels as well as the improved customer experience via direct channels. Hybrid Distribution This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
- 13. Conflict as more marketing channels compete for revenue Difficult to control multiple channels Channel conflict raises issue of lowering prices as direct channels conflict with indirect. Pricing has to be kept common for both. Better customer experience via direct Higher profit margin in direct selling Lower distribution costs via indirect Increased coverage by combining direct & indirect Customized approaches Hybrid Distribution - Advantages & Challenges 13 › The need to increase market coverage. Indirect channels help you reach new customers and segments. › The need to contain costs is another factor. Direct selling can become costly. Distribution via intermediaries is cheaper. › Add text here › Add text here When to Use Hybrid Distribution ChallengesAdvantages This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
- 14. Summary 14 › Retail outlets › Mail order selling › Internet selling › Higher profit margins › Lower product pricing insights › Better CX › Best value proposition › Sizeable costs › Limited reach › Non-availability of intermediaries › Direct customer contact › Pricing economics › Retailers › Wholesalers › Agents/Brokers › Franchisees › Resellers › Share costs › Broader distribution › Benefit from your third- party’s experience, infrastructure › Easier distribution logistics › Lesser margins › No brand loyalty › Difficulty in accessing customers › Need to increase market share › Limited capital for distribution › Own website › Own retail stores › Retailers & Wholesalers › Brokers & Distributors › Best of both › Conflict › Lack of control › More reach, more profits, more distribution points Type Direct Indirect Hybrid Benefits ChallengesDistribution Options When to Use This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
- 15. Direct Distribution Strategy 15 Improve operations & services at existing locations Open more retail stores in new locations Close stores in unprofitable locations
- 16. Indirect Distribution Strategy 16 More locations within current channel partners or signing up new channel partners Strengthen existing channel partners 1 Improved value proposition Improved processes New marketing campaigns More effective sales support strategies Add more channel partners & stores 2 Remove Unproductive Channel Partners 3 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
- 17. Partner Growth Goals (Option 1 of 2) 17 $11.2 $13.6 $15 $0 $10 $20 2018 2019 2020 InMillions Target › Pricing/Discounts › Partner Payment Plans › Text here › Text here 35% 37% 40% 42% 44% 50% 91% 93% 100% 41% 51% 55% 2018 2019 Target 2020Revenue Performance Metric Initiatives for Channel Growth: This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Customer Satisfaction Profit Margin Net New Customers Net Promoter
- 18. Partner Growth Goals (Option 2 of 2) 18 › Pricing/Discounts › Partner Payment Plans › Text here › Text here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Initiatives for Channel Growth: $ 11.2 M $ 13.6 M $ 15 M 35% 37% 40% 42% 44% 50% 91% 93% 100% 41% 51% 55% Customer Satisfaction Profit Margin Net New Customers Net Promoter Revenue 2018 2019 Target 2020
- 19. Partner Selection Criteria & Assessment 19 Partner A Partner B Partner C Partner D 9 8 7 7 8 7 7 6 9 7 5 5 8 8 8 6 9 6 7 5 43 36 34 29 SelectionCriteria&Assessment Value Added to Our Value Proposition Total Score Best coverage of the target market Most profitable Geographic Alignment Best satisfy the buying requirements of the target market This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Criteria
- 20. Distribution Strategy Template 20 Strategies for Future- This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Revenue per Location Revenue per Partner Number of our Retail Stores Number of Partner Retail Stores Online Sales Gross Margin Number of Channel Partners Target 2020 $ 15 M $ 12 M 8 K 45 $ 5 M 38% 15 K 2019 $ 12.1 M $ 9 M 6 K 35 $ 3.6 M 36% 13 K 2018 $ 10.5 M $ 7 M 5 K 30 $ 3 M 35% 12 K Metrics
- 21. Implementing Distribution Strategy in your Organization for Icons Slide 21
- 23. Company Introduction 23 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Target Audience This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Creative This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Values Client
- 24. 24 Our Vision Mission Values This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Vision This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Mission This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Values
- 25. Our Goal 25 Goal 02 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Goal 01 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 0 Goal 03 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
- 26. Organization Chart 26 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Name Here Designation Name Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Designation Name Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Designation Name Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Designation Name Here Designation Name Here Designation Name Here Designation Name Here Designation Name Here Designation Name Here Designation Name Here Designation
- 27. Comparison $75 Billion This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Google $57 Billion This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Microsoft $58 Billion This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Facebook $40 Billion This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Apple 27
- 28. Bar Chart 28 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. Product 01 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. Product 02 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2018 2019 2020 Product 01 Product 02
- 29. Pie Chart 29 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. Add Text Here Add Text Here Add Text Here Add Text Here Add Text Here Add Text Here Add Text Here Add Text Here Add Text Here 15% 17% 14% 13% 12% 4% 7% 18%
- 30. Dashboard 30 20% 0 100 20 10 30 40 80 90 70 60 50 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. Add Text Here 50% 0 100 20 10 30 40 80 90 70 60 50 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. Add Text Here 70% 0 100 20 10 30 40 80 90 70 60 50 This graph/chart is linked to excel, and changes automatically based on data. Just left click on it and select “Edit Data”. Add Text Here
- 31. Linear Diagram 31 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Add Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Add Text Here Add Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Add Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
- 32. Circular Diagram 32 Circular Add Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Add Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Add Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Add Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention. Add Text Here This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
- 33. Roadmap 33 Start End2016 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2018 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2020 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2019 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2017 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2015 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
- 34. Timeline 34 2016 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2017 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2018 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2019 This slide is 100% editable. Adapt it to your needs and capture your audience's attention. 2020 This slide is 100% editable. Adapt it to your needs and capture your audience's attention.
- 35. 35 Thank You # street number, city, state Address e-mailaddress123@gmail.com E-mail Address 0123456789 Contact Number