Marketing is a vital factor for any business. It can help the company rise and it can make a company fall. There are four elements of marketing mix:
Distribution is one of the most important marketing mix element. Basically, distribution is the process of making a product available for the consumers/customers. This can be done directly by the producer or service provider or by using indirect channels like distributors. Distribution includes following steps:
- A good transport system.
- A good tracking system so that goods reach at right time.
- A good packaging.
- Tracking places where products can be placed.
- A system to take back goods from trade.
While designing a distribution plan we need to understand the distribution strategies which have different approaches:
- Indirect distribution is when product is delivered to customers via numerous channels in between.
- Direct distribution is when product is directly delivered to end customers or the channel length is very small.
- Intensive distribution is when the company has a mass marketing product. Usually FMCG and consumer durable products are used in this strategy.
- Selective distribution is used by company which has selective market. Usually big brands like Armani, Gucci etc. are likely to use this strategy.
- Exclusive distribution is used by multi-national companies having outlets in more than 1 region e.g. Lamborghini. Every region has one exclusive distributor which might further have channel and that completely depends upon the sole distributor.
The most important key point during distribution is distribution channel. A distribution channel is a chain of intermediaries through which a good is delivered to customers. It can include wholesaler, retailer, distributor or even internet or any other medium involved in the chain. It can also be termed as distribution network.
Talking about distribution in Pakistan, Pakistan’s retail industry is under development. There’s an excess of 2.5 million shops offering basic products. If we talk about companies that contribute to electricity generation in Pakistan then we have approximately 42 IPP (independent power producer) distributors.
Pakistan’s wholesale market is fairly well developed, with about 1,000-1,500 wholesalers. Karachi is the major distribution center for wholesale goods. Approximately one – fifth of the wholesalers in Karachi sell on a consignment basis. Less than one-third of wholesalers allow discounts to their customers, but the granting of 30- to 90-day credit is common. Because of limited financial resources, retailers generally sell on a cash-only basis. Consumer credit in Pakistan remains an insignificant portion of the total commercial credit. Foreign companies selling industrial or capital goods often sell directly to the end-user or, if the market is fairly large, they appoint one major distributor who then sells either to sub-distributors or directly to end-users. Pakistan’s retail scene faces the longest haul towards modernization. Planet Retail estimates that only around 8.4% of the country’s grocery retail sales are generated by modern businesses. This should grow to just 9.0% by 2020. Modern retail infrastructure in Pakistan is, thus, limited to the largest cities such as Karachi, Lahore, Rawalpindi/Islamabad and Faisalabad. The retail sector in Pakistan is experiencing impressive growth as global brands and outlets enter the market. Local retailers are also extending their activities to compete with their biggest foreign competitors.
There are two types of mass retailers:
- Pakistani Mass Retailers:
- Utility store corporation.
- Imtiaz supermarket.
- Canteen store department.
- Foreign mass retailers:
- Metro cash and carry Pakistan.
- Spar Pakistan.
- Hyperstar Pakistan.
Lahore is the 14th most populated city in the world. As a huge number of populations resides here indirectly it indicates that different type of good customer number is in Lahore. It gives a plus point to distributors to target this market and grow. Lahore has approximately 9000 industries, second largest mall in Pakistan i.e. Emporium Mall and huge number of business. In other words, it gives a good audience to distributors. There are approximately 200-250 verified distributors in Lahore available on the internet as well. Moreover, a good number of companies have private distributors working for them. Lahore is a huge city to talk about, all that can be said that a good number of distributors are working in Lahore. Some of the famous and renowned distributors include:
- Mass Enterprises
- Allied Marketing
- Chaudhary Brothers
- Pure It
- BMW Pakistan
- Ace Contractors
and many more.
Elite Brands Limited is a DSD (Direct Store Delivery) distributor located in Lahore. We provide distribution facility nationwide and that’s why we are the biggest distributor company in Pakistan. We deal in FMCG and sought goods.
- FMCG Companies:
- Sole distributor of Treet Corporation Limited in Lahore. A well-recognized company providing shaving products.
- LMT (Local Modern Trade) distributor of National Foods. A very well-recognized company providing Spices and Masalas all over Pakistan.
- Sought Goods:
- Area distributor of Hi-Tech Lubricant in Lahore. It is a synthetic oil lubricants company with products for Passenger Cars Oil, Diesel Engine Oil and Motorcycle Oil. The company is well known by its brand name ZIC.