Crompton Greaves

CHANNEL CONFLICTS

SALES CHANNELS
Ecommerce websites- ~2%

OFFLINE SALES- 72-74%

Flipkart
Amazon
Snapdeal

Mom and Pop Stores

Crompton Greaves(Rs.1350)
12% Markup

MORDERN TRADE- Hypermarts ~ 4%

Bulk Buying experienced
Higher discounts expected
Low business

Distributor buys
at Rs.1500-1550

Retailer buys at Rs.1700-1750

10-13%
Markup

End Consumer buys at

Rs.1750-2000 with MRP at
Rs. 2000

Direct Dealers- 20-22%

Less Intermediary
Big retailers buying directly from CG

Channel Conflicts:
Mom and Pop stores:
Distributors are allowed to Markup products from 10-13% on their own discretion
Small retailers buy from local Distributors despite high Markup from distributors.
Big retailers generally go for distributors from any regional area that are giving a lower
Markup of 10%.
To continue with distributorship, distributors have to complete a certain annual business
regularly which is hampered by this retailers freewill to purchase.

Ecomm Stores and hyper marts:

Lower Volume business from these channels as they have been asking for greater margins
owing to the heavy discounts that prevail in their stores.
CG has been finding it not feasible to provide the products at such low prices and hence low
presence in these stores.