The distribution core of deep distribution

The traditional distribution model is manufacturer-distributor-secondary supplier-terminal-consumer, and the whole marketing network is arranged in a pyramid, which is only a difference in quantity for enterprises at the channel level. For a single enterprise, the so-called distribution model, the real core problem is actually who dominates the operation of this network and the manufacturers? Or a dealer? What exactly do they do? In the final analysis, the problem of distribution mode is basically the problem of how to divide the work between manufacturers and distributors!

What is deep distribution?

As the name implies, it is a distribution model in which manufacturers are deeply involved and network operation is dominant. In an ideal deep distribution model of consumer goods, manufacturers are responsible for business personnel management, network development, terminal maintenance, display and promotion, and dealers are only responsible for part of logistics and capital flow. But in reality, this is only an ideal situation, and no enterprise can fully achieve this goal.

Distribution process elements

A complete distribution process includes two basic elements, one is the participants in the whole distribution process, and the other is the responsibilities and obligations assumed by each participant.

In the whole distribution process, participants are not only enterprises and distributors, but also a more complete way of consideration should include five categories of participants: corporate headquarters, overseas institutions, distributors, second-batch suppliers and terminals. With the changes of regions and channels, the degree of participation of all interested parties in each work is also different.

At the same time, a complete distribution process includes some work contents, such as the formulation of marketing plan, inventory management, coverage of retail outlets, display management, credit provision, design and implementation of promotion, logistics and distribution, and payment recovery.

Depth distribution model

We combine these specific work contents with the responsibilities of all stakeholders to form a complete distribution model. At the end of the article, we will introduce some analysis tools and methods to you.

It should be pointed out that deep distribution is only one of various distribution modes, which is not necessarily the best for an enterprise. So what kind of distribution model should specific enterprises adopt?