DISTRIBUTION

A distribution channel includes the chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. A distribution channel can include wholesalers, retailers, distributors and even the internet. Channels are broken into direct and indirect forms, with a "direct" channel allowing the consumer to buy the good from the manufacturer and an "indirect" channel allowing the consumer to buy the good from a wholesaler. Direct channels are considered "shorter" than "indirect" ones.

There are generally 4 levels to a distribution channel:

Zero Level: Manufacturer ----- Consumer

One Level : Manufacturer ---- Retailer ---- Consumer

Two Level : Manufacturer ----- Wholesaler ---- Retailer --- Consumer

Three Level: Manufacturer ---- Wholesaler ---- Jobber ---- Retailer -- Consumer

Find below the illustration showing the channels used by Frooti.

Frooti’s Distribution:

Frooti adopts first level and second level distribution channels.  The depot of the company sells its products directly to the retailers and them it reaches to the consumers. This happens only in places where depot of the company is located. In small towns wholesalers are established by the company. Wholesalers get product from depot of the company and they sell it to retailers through whom it ultimately reaches the consumers. There are around 3,50,000 retailers that help to serve Frooti in its distribution.