In any sales organisation, distribution and channel sales are the core of the business. The distribution set up and model are very strategic to how the company proposes to reach its customers and how the strategy would effect the bottomline of the company. Retail outlets provide a platform to sell company's products to the end consumers. These retail outlets are in turn supplied thru distributors.
Each company choses its distribution strategy on the basis of what clientle it wants to reach and what is the product portfolio it is dealing with. My point of analysing the business merger or de-merger will be with a point of view of Distribution and sales structure. When I talk about distribution structure, it includes, distributors, Salesmen, supply units and sales structure means the Sales Force which manages this business.
HUL merged its Foods and Personal and Home care business. Cadbury's operates still two business divisions Mass and Main, Perfetti Van Melle operates four divisions, AMUL has three lines of business, Milk, Ice-cream and dairy, Brittannia operates two distribution highways - Buiscuits and Dairy products, Godrej has also two lines-saralee and soaps.
What are the consideration to have same or different distribution and sales structures?
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