This document discusses different distribution strategies for companies to use to get their products to end customers. It describes direct distribution, where a company sells directly to customers without intermediaries. Indirect distribution involves selling through middlemen like retailers or wholesalers. Hybrid distribution combines direct and indirect channels. The document provides examples of when each strategy is best to use and their advantages and challenges. It also includes templates for direct, indirect and hybrid distribution strategies.

1. Proven Ways to Make
Your Product Reach
the End Customer
Your C ompany N ame

2. 2
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Welcome Message
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About Us
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Meet The Team
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Portfolio
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3. Table of Contents
Summary
03
Direct
Distribution
Strategy
04
Indirect
Distribution
Strategy
05
Partner
Growth
Goals
06
Partner
Selection
Criteria &
Assessment
07
Distribution
Strategy
Template
08
Direct Channels
• When to Use Direct Distribution?
• Direct Channels - Benefits & Challenges
Indirect Channels
• Indirect Distribution - Advantages & Disadvantages
• When to Consider Indirect Distribution?
Hybrid Distribution
• Hybrid Distribution- Advantages & Challenges
Trends in Distribution Strategy
01
Three Most Common Distribution Channels
02
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3

4. Trends in Distribution Strategy
Three distribution models – Direct, Indirect & Hybrid are governing
the way goods & services are reaching the end consumer
Internet is changing the distribution landscape. Enabling online direct distribution
bringing in higher profit margins and more control over customer experience
Hybrid becoming a popular channel (hotels might sell directly
but also via travel agents)
… to reach maximum consumers
Companies using “Big Box” retailers like
Direct
IndirectHybrid
4

5. 5
Three Most Common
Distribution Channels
Manufacturer sells the goods through multiple channels – own as well
as 3rd party cannels.
• Own website
• Own retail stores
• Retailers & Wholesalers
• Brokers & Distributors
Hybrid
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
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6. Direct Channels
6
• No middleman or intermediary; Supplier owns and manages all the resources in the value chain
• Direct selling to consumers
Distribution by salesmen
Online marketing
Distribution from factory gate
Distribution via the company showroom and retail outlets
Direct
Channel
Types-
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7. When to Use Direct Distribution?
7
Examples of Companies
Computer
Business
Clothing
Southwest Airlines or
easyJet
(low-cost airline business)
Securities
Direct distribution is typically used when:
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 are not available for reaching target markets
Intermediaries do not possess the capacity to service the requirements of target markets
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8. 03
Better customer
experience
through direct
interaction and
customer insights
Increased
Profit margins
o With intermediary-
Cost at Supplier
Level $25 - Cost
at Intermediary
Level $50 - Cost
for Consumer $100
– Profit Margin $50
o Direct Channel-
Cost at Supplier
Level $25 - Cost
for Consumer $100
- Profit margin $75
01
Reduced cost
for consumer
o The flexibility to
reduce costs, say
from $100 to $90,
and still earn higher
profit margins
02
Distinguish
yourself from
the competition
04
Get your
products to
consumers faster
03
Direct Channels - Benefits & Challenges
Challenges-
• Sizeable Costs. Company will have to purchase trucks, hire drivers and rent storage space.
• Limited Reach. Difficult to reach a very broad base of customers. The distributors have an
established network.
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Benefits

9. Indirect Channels
9
One - Tier
Manufacturer
Consumer
Retailer
Two - Tier
Manufacturer
Consumer
Retailer
Wholesaler
Three - Tier
Manufacturer
Consumer
Retailer
Wholesaler
Agent
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.
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10. Indirect Distribution - Advantages & Disadvantages
10
Pros & Cons
• 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
Pros
• 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
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11. 11
Examples of Companies
Coke
Pepsi
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
When to Consider
Indirect Distribution?
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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 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.
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
Hybrid
Distribution
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13. Hybrid Distribution - Advantages & Challenges
13
Advantages
Increased coverage by combining direct
& indirect
Lower distribution costs via indirect
Customized approaches
Better customer experience via direct
Higher profit margin in direct selling
Challenges
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.
When to Use Hybrid Distribution
• 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.
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14. Distribution
Options
Benefits Challenges When to Use
Direct
• 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
Indirect
• 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
Hybrid
• Own website
• Own retail stores
• Retailers & Wholesalers
• Brokers & Distributors
• Best of both • Conflict
• Lack of control
• More reach, more profits, more
distribution points
Summary
14
Type
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15. Direct Distribution Strategy
15
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Improve operations &
services at existing locations
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Open more retail stores in
new locations
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Close stores in
unprofitable locations

16. Indirect Distribution Strategy
16
Strengthen existing channel partners01 Add more channel partners & stores02
Remove unproductive channel partners03
More locations within current channel partners or signing up new channel partners
Improved value proposition
Improved processes
New marketing campaigns
More effective sales support strategies
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17. Partner Growth Goals
17
Initiatives for
Channel Growth:
• Pricing/Discounts
• Partner Payment Plans
• Text here
• Text here
Performance Metric 2018 2019 Target - 2020
Revenue $11.2m $13.6M $15M
Profit Margin 35% 37% 40%
Net New Customers 42% 44% 50%
Customer Satisfaction 91% 93% 100%
Net Promoter 41% 51% 55%
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18. Criteria Partner A Partner B Partner C Partner D
Best coverage of the target
market
9 8 7 7
Best satisfy the buying
requirements of the
Target market
8 7 7 6
Most profitable 9 7 5 5
Geographic alignment 8 8 8 6
Value added to our
Value proposition
9 6 7 5
Total Score 43 36 34 29
Partner Selection Criteria & Assessment
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19. Metrics 2018 2019 Target 2020
Revenue Per Location $10.5M $12.1M $15M
Revenue Per Partner $7M $9M $12M
Number of our Retail Stores 5K 6K 8K
Number of Partner Retail Stores 12K 13K 15K
Number of Channel Partners 30 35 45
Online Sales $3M $3.6M $5M
Gross Margin 35% 36% 38%
Distribution Strategy Template
19
Strategies For Future-
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20. Icons Slide for Proven Ways to Make Your Product Reach the End Customer
20

21. 21
Additional
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22. 22
Company
Introduction
Values Client
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Target Audience
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Creative
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23. 23
Our Mission Vision Values
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Mission
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Vision
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Values

24. Our Goal
24
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25. Organization Chart
25
CEO
Peter Lee
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Director
Sophia Williams
Developer
Chris Tucker
Editor
John Graves
Designer
Marry Graves

26. Comparison
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MARRY SMITH
Designer
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KELLY SMITH
Asst. CEO
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27. Bar Chart
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Product 01
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Product 02
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28. Pie Chart
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15%
25%
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55%
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Product 02
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Product 01
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Product 03
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Product 04

29. Dashboard
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50%
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70%
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30. Linear Diagram
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01
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31. Circular Diagram
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32. Roadmap
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33. Timeline
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34. Thank You
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