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 !