View
1.862
Download
1
Category
Preview:
DESCRIPTION
Farm implement or equipment is an important agi-input sector.Indian farm equipment sector is in its nascent phase and gradually developing.Modernisation and govt subsidy are two major motivators for this growth. Distribution Channel of this sector is not much different than other agri input sectors but there are some unique characteristics.
Citation preview
Distribution Channel[Farm Implements]
Course: Agri-Input Marketing[PGDM2011-13],
Indian Institute of Plantation Management, Bangalore
Presented by-
BIDHU BHUSHAN BINIT(11PGDM08)
Contents Backdrop Indian Farm Equipment Market Existing Distribution Channel Framework Channel Dimensions & Analysis - number of channel levels - channel alternatives - information flow Scope for New Channel Dynamics Path Ahead
Backdrop
Developing Market
Strategies
Shaping the
Market Offering
Designing &
managing Marketing Channels
Distribution
Channel Channel
Backdrop
“The middlemen is not a hired link in a chain forged by a manufacturer, but rather an independent market, the focus of a large group of customers for whom he buys.”
- Phillip McVey
Indian Farm Equipment Market(contribution)
Types of Farm Equipments
Indian Farm Equipment Market
Industry Growth
Existing Distribution Channel Framework
Equipment
Manufacturer
Consumer
(Farmer)
Retailer
Retailer
wholesaler
wholesaler
jobberRetail
er
>No existance of C&F agents ,which is unlike to other agri-input sectors.>Sometimes, there is one intermediary which works as both wholesaler as well as retailer . > Transfer of title of goods .
Number of channel levels
manufacture
r
farmer
dealer
wholesaler dealer
In farm equipment market, two channel levels are there. In Tractor ,usually, one level(M-R-C)channel is in practice. In other equipments, two level(M-W-R-C) channel in practice.
Channel AlternativesType of Business
Intermediaries Manufacturers of farm
equipments opts for conventional type of intermediaries. Products are for farmers, usually wholesalers and retailers they choose.
No innovative types are in the line.
Number of Intermediaries Manufacturers goes both for
intensive distribution as well as for exclusive distribution.
It depends on the potential of market, sales potential and type of equipment.
Usually Tractor market shows ,exclusive distribution with exclusive dealing.
Exclusive dealing means dealer not to carry complete line.
Information flow(through channel)
manufacturer
Zonal sales office
Local sales office
dealer
Barefoot
salesman
Banks/financial institutio
ns
Consumer/
farmer
Scope for new channel dynamics Farm equipment manufacturing company has
been in practice of conventional marketing channels.
In other sectors vertical marketing system has been adopted, the nature of this agri-input sector itself supports in resistance to new channel dynamics.
In exclusive dealership, it can be said that essence of VMS can be felt in terms of power of manufacturer(brand power) but not in the form of ownership.
Path Ahead in distribution channel of Farm Implements Industry is in its nascent phase in comparison
to other agri-input sectors, so in future lot of changes will be seen.
Today, manufacturers seems to be much dependent on their channel partners which veils the information flow.
There is much scope of value addition on channel level. Usually service centers are established with dealers. If it is made to the village level, it will create a new dimension for channel resulting into transparent flow of information with customer satisfaction and also this move will bring augmentation.
THANK YOU !
Recommended