Reynolds Distribution Channels- India

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Brand : Reynolds

GROUP 11SECTION BIIM Indore

Contents

Dealers4

Way Forward7

Channel Levels1

Super Stockists2

C & F Agents3

Attracting channel members

Write Site6

5

Channel Levels

Super Stockist

Initial investment required

Commission: 3.5%Effective margin: 2%

Act as service points

Intermediary between manufacturer and market

Carry & Forwarding Agent

DEALERS

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Selection criteria

Competitor network

Channel segregation

Extensive distribution network

For small towns: depending on counter sales of the owner in

the same business

Main towns: FMCG distributor

Rotomac, Cello: operate through wholesale basis giving complete

margins to wholesalers

Do not have an extensive

distribution network

To improve product

penetration

Only at Indore on trial basis

Helps in reducing

inventory levels and lead times

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Trade margins

Attracting channel

members

Primary- dealer incentive of 1.5% of quarterly value sales

Secondary- seasonal schemes for retailers and distributors

BUT

Conditions of sale

Cash and carry policyBottom line

6% fixed for dealers

20% approx for retailers and wholesalers

Trade promotions

Institutional salesUsually through dealers

Dealers and ASM receive pricing supports

for specific deals

Some Interesting Facts

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No in

cre

men

t in

pro

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ct

pric

es

Write site

25% growth without any aggressive marketing

Unique concept

specific to Reynolds

It recovered its fixed costs earlier

Still making a profit

Brand loyalty of ReynoldsSegment growing by 15%-

20% annually

WRITE SITE

An exclusive showroom for writing instruments

Showcases a range of global

products from Sanford and Reynolds, in a smart yet easy ambience

Get to touch, feel and choose from a wide range of products in a relaxed and trendy atmosphere

EXCLUSIVITY OF REYNOLDS STORE

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WRITE SITE

Way forward

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Group 11, Section B