This presentation is about Sales and Distribution Management of companies, inside this presentation sales and distribution management system of Samsung and Lg is depicted briefly. This could help in understanding Sales and Distribution Management easily with brief definitions.

1. Presented By-
Sumit Rai (BBA/4518/15)
Vijayant Khurana (BBA/4530/15)
SALES AND DISTRIBUTION MANAGEMENT
(4009)

2. PHYSICAL DISTRIBUTION OF SAMSUNG
AND LG
(WHITE GOODS AND BROWN GOODS)

3. PHYSICAL DISTRIBUTION?
• Physical distribution ‘involve planning, implementing
and controlling the physical flow of materials and final
goods from place of production to the place of end use
to satisfy buyers needs’ - Philip Kotler

4. CONSUMER DURABLES
White Goods
• Air Conditioners
• Refrigerators
• Washing Machines
• Microwave ovens
• Cleaning Equipment
• Televisions
Brown Goods
• Mixer Grinders
• Iron
• Electric Fans
• Chimneys
• Cooking Range

6. SAMSUNG
• Samsung Electronics Co., Ltd. is a South Korean multinational electronics company
headquartered in Suwon, South Korea.
• It is the world's second largest information technology company by revenue, after Apple.
• Samsung Electronics has assembly plants and sales networks in 80 countries and
employs around 370,000 people. Since 2012, Kwon Oh-hyun has served as the
company's CEO.
• Founded on 13 January 1969 as Samsung Electric Industries and in 1988 as Samsung
Electronics

7. VISION AND MISSION
• Vision
Inspire the world, create the future
• Mission
To inspire the world with innovative technologies, products
and designs that enrich People’s lives and contribute to a
socially responsible and sustainable future.

8. CHANNEL DESIGN OF SAMSUNG
• Sub Dealer/Distributor Channel
Company’s
Manufacturing
Units
Distributor Big Retailers
Small
Dealers/Retailers
Retail Chains
Franchised
Outlets
Digital Plazas
Digital Homes
Digital Worlds
C&F Agents (One
in each state)

9. PROCESS OF DISTRIBUTION
GOODS ARE DISPATCHED TO C/F’S ON
CONSIGNMENT BASIS.
DISTRIBUTORS SOURCE THE ORDER OF
GOODS FROM THE WAREHOUSES SERVED BY
C/F’S
RETAILERS ORDER THEIR REQUIREMENT
FROM DISTRIBUTORS.
GOODS ARE BOUGHT BY THE CUSTOMERS
FROM RETAILERS.

10. STRATEGIES OF SAMSUNG
• BIDDING SYSTEM is used by the company to select dealers. Strength of the
balance sheet and the reputation of the dealer is looked at before authorizing
the dealer.
• INCENTIVES to the distribution channel are through certificates of
recognition.
• ZERO CREDIT policy followed by company when dealing with distributors
and dealers. However, the distributor may allow for a credit period of 7 days,
depending on the health of the retailer’s balance sheet.
• OFFERS like goods free with other goods are almost always given by
retailers to push sales during festive seasons. Company does rarely gives
such offers. Company’s promotions may be through scratch cards, free trips
and/or microwave cooking kits etc. Explicit offers are generally made by the
retailers

12. LG
• LG Corporation formerly Lucky-GoldStar, is
a SouthKorean multinational conglomerate corp
oration.
• It is the fourth-largest chaebol in South Korea. It
is headquartered in the LG Twin Towers building
in Yeouidodong, Yeongdeungpogu, Seoul.

13. VISION AND MISSION
• Vision
LG’s vision is to become the market leading company with broad
market recognition.
• Mission
To create value for customers.
To respect human dignity.
To become best in its field.

14. CHANNEL DESIGN OF LG
1. Direct channel
2. Sub dealer/Distributor channel

15. Manufacturer
Direct Channels Indirect Channels
Direct
Sales
Online
Marketing
Telemarketing
Manufacturers’
Representatives
Industrial
Distributors
Customer Segments

16. DIRECT CHANNEL
1. Company stores that directly sell to end costumers.
2. Exclusive stores or More focus for profitability and
large volumes.
Perks of Direct Channel-
a) No loss of margins through intermediaries.
b) Complete control over distribution process.

17. SUB DEALER/DISTRIBUTOR CHANNEL
Company Office
LG Area Office
Exclusive Single-Brand
Retailer
Distributor
Exclusive Multi-Brand
Retailer
Dealer Sales
Officer (DSO)
Retailer Sales
Officer (RSO)
Sub-Retailer Sub-Retailer

18. PROCESS OF DISTRIBUTION
GOODS ARE DISPATCHED TO C/F’S ON
CONSIGNMENT BASIS.
DISTRIBUTORS SOURCE THE ORDER OF
GOODS FROM THE WAREHOUSES SERVED BY
C/F’S
RETAILERS ORDER THEIR REQUIREMENT
FROM DISTRIBUTORS.
GOODS ARE BOUGHT BY THE CUSTOMERS
FROM RETAILERS.

19. STRATEGIES OF LG
• SUPPORT FROM SALES/MARKETING PEOPLE OF COMPANY- LG
Electronics regional office has helped by deploying its employees at
agencies. This has helped in better grooming of sales personnel and better
presentation of products in front of consumers as well as when they are
dealing with other sub-dealers.
• MARGINS ALLOWED- Agencies has set different profit margins when selling
to subsequent dealers and sub-dealers. The profit margins vary depending
on the product category in terms of how slow/fast the products moves.
• CASH AND VOLUME DISCOUNT- Agencies gives a cash discount of
maximum of 1% and volume discount of maximum of 5% at small levels.

20. CONCLUSION
• LG and Samsung together account for
over 40 per cent of the consumer
durables market in India.
• Samsung entered India in 1995
whereas LG began operations in 1997.
• Samsung’s revenues had shown an
increase at a CAGR of 9.38 per cent
from 2012 to 2014.
• LG, had shown decline in revenues
during 2012-2014 with a CAGR of 24.1
per cent