DCM PROJECT

CURRENT STATE OF THE CHANNEL

COMPANY: WHIRLPOOL
PRODUCT: Refrigerator & Washing Machine

Submitted by
Group-4
NITIN GOYAL
ARUSHI ZIBBU
TARUSHI NEGI
JOSHIL SHARMA
ADAYA TYAGI
Structure and members of the Distribution Channel
Whirlpool’s channel structure consists of Carrying and Forwarding Agents who are primary
point of contact for the manufacturers. They further help in making the heavy products
available in the market for the benefit of the distributors and direct dealers. As C&F agents
share a direct relationship with the distributors and direct dealers, it becomes crucial to
understand the task relationship between them.
Direct Dealers’ title is given to those retailers who obtain orders in large numbers as
compared to other retailers. The manufacturer finds an opportunity to allow directly dealing
with them in order to reduce the margin on a whole. The role of the distributor in Whirlpool
is limited to buying units from the C&F agents and reselling them to different sub-distributors
or retailers. They work on a certain margin and are attracted to buy a greater number of units
when there are certain schemes, or their buying is incentivised.
The company comes up with various schemes such as Diwali Dhamaka under which a certain
percentage of extra margin would be offered to the distributor as an incentive to buy more. In
turn, the distributor offers a certain increased margin to the retailers to incentivise them for
buying more units. Another type of scheme offered by the manufacturers are Foreign Trip
Schemes under which foreign trips are offered to distributors upon selling a certain number of
units. All of these schemes help Whirlpool in ensuring that the channel partners are motivated
and satisfied as they also gain out of the sales of the company’s products.
Earlier, Whirlpool’s channel structure did not consist of the C&F agents and had only 1
manufacturing plant which manufactured all the categories of product the company deals in
(Refrigeration, Laundry, Air Condition, Kitchen). At present, Whirlpool has 3 manufacturing
plants at Pondicherry, Faridabad and Pune. Each plant manufactures different category of
product. Furthermore, there are different distributors assigned to different territories as
oppose to its traditional approach wherein only a single distributor used to be responsible for
whole of the region. Also, now modern trade and e-commerce have become a part of the
distribution channel due to the inclination of advancement in technology.
Hence, it is evident that with time Whirlpool has been able to evolve its distribution channel
to meet the needs of its end-users.
Product Portfolio:
1. Single door

The whirlpool single door has the following features

 7 days garden fresh that keeps the fruits and vegetables fresh
throughout the week
 Insulated capillary technology that helps in retaining 12 hours
cooling retention during power cuts, results in fastest ice making and
also provides the coldest freezer of -26.c
 Advanced moisture control technology that enables moisture
retention
 Micro Block technology that prevents bacteria growth up to 99.99%

2. Double Door
Neofresh Refrigerators:
o 6th SENSE Deepfreeze Technology
o Unique Fresh Flow Air System
 3. Three door
Proton World Series Refrigerators:

The fridge’s unique 3 door format gives you an exclusive bottom drawer – the
Active Fresh Zone – for fruits and vegetables. This, coupled with the Advanced
Moisture Retention Technology, Freshkeeper & MicroBlock creates the perfect
conditions for fruits and vegetables to stay fresher for longer.

Washing machines

Distinguishing features

360° Tumble Care

Clothes roll in multiple tumbles, like a blooming flower, ensuring a gentle yet
thorough scrubbing action.

Stainwash Technology

The patented 6-stage Stainwash Technology combines mechanical, chemical

and thermal action to give you spotless clothes. In each step the gradual raising
of temperature coupled with unique Agitronic motions unlocks the peak
detergent performance for effective removal of stains.

In-built Heater

Whirlpool is India’s only brand to give you top loaders with in-built automatic
heater technology.
Agitronic Motion

The Agitronic wash motion enables the clothes to move up & down, left & right
resulting in dynamic and uniform wash performance ensuring whitest white
clothes.
Allocation of Channel Function and Flows
Channel function and flows:
1. Gathering information about potential and current customers, competitors
2. Persuade customers to buy
3. Reach agreements on price/ credit (car/ TV)
4. Place orders with manufacturers
5. Funds for managing inventories
6. Take risks connected with channel management
7. Storage and movement of products
8. Transfer of ownership

i. Sub Dealers: They are the link which directly connect the distributor and the final
customer. They run small shops which are located in local market. As they
communicate directly with the customer, they get the feedback from the customer.
As they are the connection between the customer and the distributor, they also
solve some service-related issues (forward the issue to the company).

ii. Direct Dealers: They also work as a link between the two parties i.e., direct
distributor and retailers. They solve the issues faced by the retailers regarding the
product, as the retailer gets the feedback from the customer, they forward the most
recurring quire which they get from the customer. Other function of direct
distributor is that they break the bulk product and allocate the products according
to the demand of the retailers or sub dealers.

iii. Modern trade: Modern retailers provide service which being promised by the
company plus they also provide service from their part. They also directly contact
with the final customer due to which they get genuine feedback. They also
 perform the task of arranging the products in the display according to their model
number their weight their price etc, this is known as Planogram.

iv. Institutional sales: They sell the products directly to the customers but in bulk.
Industries orders from them so that they can get some extra discount on the
products. In Whirlpool for example mini refrigerators ordered by Hotels to be
placed in the rooms.

v. Brand shops: The shops opened by the company consist of products of a

particular brand. They help in brand promotion as they contain only a particular
brand. Their function is to provide information to the customer regarding the
brand and its products.

Service gaps
 Segment Bulk Spatial Delivery/Waiting Assortment Customer Major channel for
name Breaking Convenience time Service this segment

CFA L L L L - Manufactures,
SS>SD SS>SD SS>SD (SS>SD) Direct Dealers,
distributor, modern
trade is their major
segment

Distributor M H L M M Retailer, Wholesaler

SS>SD SS>SD SS<SD (SS=SD) SS=SD

Retailer H H H M/H High Customers

SS=SD SS=SD SS>SD (SS=SD) SS=SD

[Note: L=LOW, M=Medium, H=High, SS= Service Supplied and SD= Service Demanded]

Bulk breaking:
 There is no minimum stock limit that CFA has to maintain the stock keeps on coming
as and when manufactured
 Distributor has to maintain a minimum stock of 700 Units
 Retailer don’t maintain much stock because of lack of extra space and they also keep
ordering on regular basis as per their requirement
Note: It differ from retailer to retailer
Spatial Convenience:
 Whirlpool has 3 manufacturing plants
 CFA are placed regionally
 Distributors are appointed as per the territory requirements (No. of Retailers, Area
Coverage, Reach)
 Retailer are there as per Convenience and demand of customer.
Delivery/ Waiting Time
 CFA to Distributor – 1-3 Days
 Distributor to Retailer – 2-3 Days
Assortment
 CFA are exclusive so there is no chance of competitor’s product
 Distributors are intensive so the assortment is mostly high
 Retailers are multi brand dealers so here the assortment is high
Customer service
It is provided by the company:

 Website: Customer can register their complain on whirlpool’s official website

Channel Channel Environment (E) /Managerial Planned
(Targeting members and Bounds (M) Cost Gap techniques for
Segment) functions closing gaps
performed

CFA Distributor, M- Safe & Timely delivery Transportation Same Transport

Modern Trade, E- Transportation / Logistics cost is high as should be used
Direct Dealers, support two different and damage
Retailers E- Legal Documents vehicles is been should be
used for product pickup on
delivery and regular basis at
Damage Pickup the time of
returning.

Distributor Retailers E- Branch Manager appoints DSOs are Training

distributor as per his territory untrained and Mechanism
requirement less educated should be made
M- No Training is provided for because of which and while hiring
Distributors/Distributor’s Sales they can’t use they should at
Officer their full least take 12
potential pass candidates
Retailers End user M- On Floor Product and sales Defectives Defectives
Training is required and timely blocking the should be picked
check should be maintained space and money up on time by
E- Damaged product should be & Less distributor & TL
picked on time Knowledge should try to
about product train them on
and its Shop-Floor
components
 Email: Customer can send email to Whirlpool Customer Care email ID with issue
mention in the subject line.
 Phone: Customer can call at any time of day at their helpline service or can also report
to the place from where they have purchased their product
 Social Media Pages: Customer can also report their problem on social media if it is
not resolved at the customer helpline

Major Channel for the Segment

 CFA: Distributor, Modern Trade, Direct Dealers, Retailer, Customers
 Distributors: Retailers, Customers
 Retailers: Customer

Types of Conflict
 Damage: A major conflict that occurs between channel partners is when there is a
defective product and it doesn’t gets picked up on time by the distributor which blocks
his space and money both
 Schemes: Another major conflicts arise when the scheme benefits & Price list were not
properly passed on the channel partners this hampers the trust and relationship of the
channel patterns and the company
 Service Recovery: If the customer complaint is not resolved on time it creates a
discomfort between the Channel partners. Most of the customer do not register their
complaint directly to company instead they prefer asking their retailers which weakens
the process

Conflict Handling

 Service Recovery: Service Engineer should be given a small sticker on which

company toll free no. should be there, so that whenever they go to repair any
product they stick it and let customer know about fast and convenient way
reaching company.
 Schemes: The Schemes and price list should be communicated by the Company through
mail and also through ASMs Visits
 Damage: PDI Should be done at distributors end and Timely pickup of damage should be
scheduled by ASM