INTB 2200 Lecture Notes - Hindustan Unilever
29 Apr 2013
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Document Summary
A concept that has come to be known as satellite distribution can be tried in developing a distribution channel in the rural market. Under this system, to start with, the firm appoints stockists in feeder towns. They take care of financing goods, warehousing of goods and sub- distribution of goods in the area covered by the feeder town. The firm also appoints a number of retailers in and around the feeder towns and attaches them to the stockists. The firm supplies the goods to the stockists either on cash or on credit or on consignment basis. The stockists take care of the sub-distribution job on the terms and conditions determined by the firm. The sales volume of the retailers will vary depending on the potential of the area covered and the capacity of the dealer concerned. Over a period of time, some retailers grow in terms of business turnover.
