Post on 18-Jan-2018
Route 2 Market Distribution Strategy
We save the pennies for the pounds to follow
Agenda
• About the product• The R2M Distribution Model– About the Model– Role of Channel Members
• Study of Competitor Distribution Channel• Recommendations
o The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K.
o The journey with chocolate lovers in India began in 1948o 30% Standalone Market Share in Indiao Market Leadero The end-to-end supply chain have been the key performance
indicatoro Loyalty of 60 million total consumers increasing at 15 million
per yearo Chocolate value share of the total impulse category is 6.1 %.
Out of which Cadbury enjoys the share of 4.4%
About Cadbury Dairy Milk
o Cadbury won the ‘Supply Chain Excellence’ awardo Kraft Foods Horizontal Expansion (Feb 2010)o DHL was conferred the ‘Best CFA of 2009; North Region’ by
Cadbury India Ltd in recognition of its consistent high quality supply chain services
o By using JIT product line, the inventory cost of Cadbury reduced from $670,000 to $200,000
About Cadbury Dairy Milk
• About the Model• Role of Channel Members
R2M Distribution Model
– Managed using SAP– Impulse Buy – Time, Place and Quality Utility– Vertical Channel Model– Designed on basis of Population >25000 & <25000 (10-25K)
About The Model
Factory
Direct State C&F
Distributor
Retail
Mother Godown(Zonal)
State Godown
Direct Store
DistributorM
odern Trade
wholesalerRetail
•5 Factories• Thane• Pune• Himachal Pradesh• Gwalior• Bangalore
•4 Mother Godown`•East Zone : Radient Enterprise•All expenses borne by the company •Charged on per cartoon basis
•Key Accounts•Spencer BigBazar, Spencers
>25000 Population
•Margin :• Fixed 4.5%• Variable 1%
(Performance Debate)•30 days Credit Period•HMC, Radha Madhav Agency
•State Dipo•In East India for Bihar & Jharkhand•Nepal Market Served Through Bihar•No Commission System•Remuneration according to the no. of cartoons sold
Factory
Mother Godown(Zonal)
State Godown
Super Stockist
Sub Stockist
Retail
10000-25000 Population
•Margin : 3% (2%+1% Freight)•Pandit Enterprise (South 24 Parganas)
•Outsourced•Accountibility of Super Stockist (Managed in SAP)•Margin 5%•Kakdip, Bakkhali
Competitor’s Distribution Channel
Traditional Trade• Nestle• Amul
Mordern Trade• Ferrorocher (KinderJoy)• Mars• Foreign Assortments
• Beat Plan• Distribution Relation
• Wider and Deeper Network• Availibility
• Variable Margins (Commissions)
• Level Distributor Margins– Competitors – 4%– Cadbury - 3%
• Develop a Packaging Unit in East India
Recommendations
Thank You