Distribution Network Analysis: Marketing Strategies and Channels

This assignment analyzes distribution networks, focusing on the Indian market. It explores the retail network, wholesale network, and logistics infrastructure, identifying key components and their functions. The assignment addresses specific questions, such as how to utilize hawkers for periodical distribution, suggesting strategies for convincing them. It further suggests international distribution channels for companies like Apple, including direct-to-retailer and direct distribution models. The assignment also proposes an alternative distribution model for urbanizing areas and discusses the advantages and disadvantages of doing business in emerging markets like India, highlighting cultural risks and market opportunities. The document draws on several marketing textbooks and resources to support its analysis.

Running head: DISTRIBUTION NETWORK
DISTRIBUTION NETWORK
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Answer to Question No. 1
The Indian distribution network consists of retail network, wholesale network and
logistics infrastructure. The retail network consists of around nine million outlets like,
traditional outlets, grocers’ stores, specialized stores, service outlets, supermarket and online
stores. The wholesalers buy products from the manufactures and after that sell it to the
retailers. The wholesaler performs storage, credit provision, information provision and bulk
breaking for manufacturers. The logistic infrastructure is based on the warehouse network,
which is influenced by mostly the taxation structure and partly by transport, distance and
demand inspection (Lilien and Grewal 2012).
Answer to Question No. 2
As many hawkers sell newspapers and magazines throughout Mumbai and they have
limited budget, I would like to offer some percentage of money from my total budget of the
new periodicals for distribution and selling. The strategy depends upon how one could
convince those hawkers. However, if one is sure about that his or her periodical will be sold;
it would not be very difficult to convince someone, especially if one offers money in return of
the service. The convincing part depends upon how one is able to influence, persuade, advise
and project his product to the distributors. The art of convincing is the leadership quality that
one has to achieve for effective communication with others.
Answer to Question No. 3
In terms of international distribution channels, I would like to suggest to companies
such as Apple to gain a larger market share in India that the producer directly sells his
products to the retailer, who would sell this product to the end consumer. In this distribution
channel there is only one intermediatory, which is the retailer. Another suggestion could be

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using the direct distribution model where the producer, the Apple Company would directly
sells its product to the end consumer using its own platform in India (Terpstra, Foley and
Sarathy 2012).
Answer to Question No. 4
I would like to implement strategies like an alternative distribution model instead of
traditional model, which seems to be inadequate in the context of growing urbanization where
seventy to seventy-five percent of rural districts started to move from their current reality
towards urbanization in terms of purchasing power and per capita income. The alternative
model would analyze the sales benchmark for an area based on the population of that area
and the market potential value data, which is the purchasing potential of a specific market
(Armstrong et al. 2015).
Answer to Question No. 5
The advantages of doing business in the emerging markets like India is that it offers
new wants or need, so, the new business can easily penetrate in the market. There are other
advantages of starting up and maintaining business in India like first moving and early
success in business, access to the new capital as the emerging market is new and virgin. The
disadvantages include cultural risks and limited protection. A new businessperson should
know the cultural perspective of the product, which he is going to sell. There is a chance for
limited protection in corruption for doing business in the emerging countries (Cavusgil,
Ghauri and Akcal 2012).

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References
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Cavusgil, S.T., Ghauri, P.N. and Akcal, A.A., 2012. Doing business in emerging markets.
Sage.
Lilien, G.L. and Grewal, R. eds., 2012. Handbook on business to business marketing. Edward
Elgar Publishing.
Terpstra, V., Foley, J. and Sarathy, R., 2012. International marketing. Naper Press.