Sandip Distribution Channel Agrocel

8/10/2019 Sandip Distribution Channel Agrocel

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A

PROJECT REPORTON

A STUDY OF DISTRIBUTION A STUDY OF DISTRIBUTIONOF CHANNELOF CHANNEL

With Special Reference To With Special Reference To AGROCEL AGROCEL INDUSTRIESINDUSTRIES Ltd .. SERVICESSERVICES

DIVISION OF SANGLI.DIVISION OF SANGLI.

Submitted by

Mr. SANDEEP NAMDEV RAJMANE

Under the guidance of

PROF.JAYANTHI M.S.

In the partial ful llment for re!uirement of the degree

"ASTER O# $IUSNESS A%"INISTRATION &IT'&TRI"E()'

Submitted to


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$*ARATI )I%+APEET*, UNI)ERSIT+

Thi- i- certify that, the pro.ect report entitled

A STUDY OF DISTRIBUTION A STUDY OF DISTRIBUTIONOF CHANNELOF CHANNEL

Thi- i- being -ubmitted by,

"r/SAN%EEP NA"%E) RAJ"ANE

I- a record of their o0n 0or1 carried out by them for the a0ard of the degree

"MASTER OF BUSINESS ADMINISTRATION"&TRI"ISTER()'

Under my -uper2i-ion 3 guidance during academic year 4556(4557/

Prof/ ARJUN P/ 8*ATU9E&%IRECTOR'

Prof/ :/SU$ARA"ANPROF.JAYANTHI M.S.

*/O/%/'&8UI%E'

%EPART"ENT O# "ANA8"ENT STU%IES


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$*ARATI )I%+APEET*, UNI)ERSIT+ INSTITUTE O# "ANA8E"ENT AN%

RURA9 %E)E9OP"ENT A%"INISTRATION, SAN89I


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$*ARATI )I%+APEET*, UNI)ERSIT+

INSTITUTE O# "ANA8E"ENT AN%

RURA9 %E)E9OP"ENT A%"INISTRATION, SAN89I

DECLARATION

I undersigned hereby declare that the project

report entitled, ; A Study of %i-tribution Channel players if the

firm decides to use middlemen$ it must choose among many different types.

(t the retail level the range of institution includes specialty audio3 video

outlets department stores$ discount houses. (nother choice must be made if

the firms decides to also use &holesaling the type of middlemen.

1) Deter/inin Inten#it$ o' Di#tri0"tion ?

%he ne't decision relates to intensity of distribution$ or the number of

middlemen used at the &holesalers and retail levels in a particulars territory.

the target mar#et buying behavior and the products nature direct bearing on

this decision@s

4) Choo#in Speci'ic Channe Me/0er#5

%he last decision is selecting specific firms to distribute the

product. ;or each time of distribution$ there are usually numerous specific

companies from &hich to choose.

Bhen selecting specific to be a part of a channel a producer

should assist factors related to the mar#ets$ the products$ its o&n company$

and the middlemen. %&o additional factors are &hether to middlemen sells to

be mar#et that the manufacture &ants to reach and &hether the middlemen@s product mi'$ pricing structure promotion consumer service are all

compatible &ith the manufacture@s needs.


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N"/0er# o' Di#tri0"tion Channe

7e3e #5-

"ach layer of mar#eting intermediaries that performs some &or# in bringing the product to its final buyer is a channel level . %he figure belo&sho&s some e'amples of channel levels for consumer mar#eting channels?

Channe #5-Channe

Is called a direct3mar#eting channel$ since it has no intermediary

levels. In this case the manufacturer sells directly to customers. (n e'ample of

a direct mar#eting channel &ould be a factory outlet store. Many holiday

companies also mar#et direct to consumers$ bypassing a traditional retail

intermediary 3 the travel agent.

%he remaining channels are in!irect-/ar etin channe # .

Channe 2

4ontains one intermediary. In consumer mar#ets$ this is typically a

retailer. %he consumer electrical goods mar#et in the K6 is typical Channe

1 4ontains t&o intermediary levels 3 a &holesaler and a retailer. (

&holesaler typically buys and stores large 2uantities of several producers@

goods and then brea#s into the bul# deliveries to supply retailers &ith smaller

2uantities. ;or small retailers &ith limited order 2uantities$ the use of


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&holesalers ma#es economic sense. %his arrangement tends to &or# best

&here the retail channel is fragmented 3 i.e. not dominated by a small number

of large$ po&erful retailers &ho have an incentive to cut out the &holesaler.

+actor# a''ectin the choice o' channe o'

!i#tri0"tion5

%here are several factors$ &hich affect the choice of the channel

of distribution. Some of the important factors are as follo&s. 7ere the factor$

&hich affects the choice of the distribution are mainly divided in to five steps

or groups. %hese are as follo&s$

) Pro!"ct Characteri#tic#

%he product characteristics play and important role in influencing

the channel selector. %he mar#eting manager must be study uses of product$

its fre2uency of the purchase$ pereshability rapidity of fashion change$ the

service re2uired$ its value and its bul#.

A) P"rcha#e +re "enc$5

%he more fre2uency purchase are made the more feasible it is for

a manufacturer to use direct distribution. %hese re2uire e'tensive distribution$

&hich involves a financial consideration.

B) Peri#ha0i it$5

Perishable and fashionable products such as dairy and ba#ery

products$ fruits vegetables are must be placed in the hands of the final users


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as soon as possible after its production. %hese usually re2uire more direct

mar#eting because of a danger associated &ith repeated handling and delays.

C) ?ei ht %' Pro!"ct ?

%he products that are bul#y$ large in size and technically complicated

are usually by the company to the consumers because of the difficulty of

finding middlemen for these lines.

D) Se in Price Per 9nit5

If selling price per unit is lo&$ the channel of distribution may be long

as in case of cigarette and &atches. If selling price is more the channel is more

direct as in case of television and radio.

E) Stan!ar!i&e! Pro!"ct5

Standardized product each unit of &hich is similar in colour$ &eight$

size$ 2uality etc. have direct or lengthy channel of distribution.

2) Mar et +actor# Con#"/er# +actor# 5

In mar#et or consumer factors follo&ing characteristics are

influenced channel decision.

A) Con#"/er In!"#tria Mar et5

%he producer of consumer of product may choose a long channel

involving &holesalers and retailers depending upon the nature of the product.

In case of industrial product the channel is comparatively short because

retailers services are not re2uire in such cases.


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B)N"/0er %' P"rcha#e#5

Bhere number of consumers is large the channel may be indirect and

services of &holesalers and retailers became necessary. !ut if consumers are

fe& direct sales can be entertained through representative.

c) eo raphica Di#tri0"tion5

If consumer are geographical dispersed$ the channel may long$ in

contrast if they are concentrated the direct selling may be done.

D) Si&e %' %r!er#5

Bhere customers purchase small 2uantities fre2uency and regularly$

lengthier mar#eting channel are indicated. If the size of orders from the

consumers is large the channel may be shorter.

1) Co/pan$ or Enterpri#e +actor5

%he choice of channel is also influenced by company characteristics

such as its financial position$ size$ product mi'$ moral of its employees$ past

channel e'perience prejudice and over all mar#eting policies.

A) +inancia Re#o"rce# ?

%he financial strength of the company determines &hich mar#eting

tas#s$ it can handle efficiently and &hich once are to delegate to middlemen. (

company having good financial resources may engage itself in direct

mar#eting in profitable manner. ( &ee# financial position may force a

company to use financially strong intermediaries even if this is not profitable.

B) Si&e %' The Co/pan$5


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( large company already handling a &ide line of products may be #in a

good position to ta#e additional products of the same &ay$ usually directly. but

a smaller firm or one &ith narro&er lines &ould find middlemen more

practical.

C) Pro!"ct Mi,5

( fresh e'pansion of plant capacity may re2uire more aggressive

channels. If the product mi' of a company is under$ it can deal its &ith

customer directly$ similarly$ consistency in the companies product mi' ensures

homogeneity of its mar#eting channel .

D) Attit"!e %' Co/pan$ E,ec"ti3e# ?

%he attitude of the company e'ecutive may also influence the channel

selection. %heir e'perience of &or#ing &ith certain type of middlemen may

tend to develop channel performance.

4) En3iron/enta +actor#5

%he environmental factors such as economic$ ethical and social

condition and the la& of the land also influence channel decision.

A) Econo/ic +actor# ?

Bhen economic conditions are depressed the producers proper shorter channels to cut costs. If there is multi point ta' on scale$ the line should be

shorter to avoid the ta' burden of the consumers and they prefer to scale

directly to the retailers on consumers.

B) Socia +actor#5


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Social factors such as distribution through blac# mar#eting involves 2uestion

of the ethics and injurious to society %hus above factors influence the channel

decision of the product and the producers does not al&ays enjoy complete

freedom in selecting mar#eting channels.

Chapter-5 IVData Ana $#i# * Interpretation

Table 1: Demand and Supply

Sr. Ho OptionsIn

Percent(%)1 Yes 12 8 !2 "o # 2 !

$rap ical &epresentation


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)ata Interpretation

%he majority of retailers say that &hen it gives demand to the&holesaler he gives supplies at proper time and very fe& are saying not

supply at proper time.

Table 2: 'inance to producer

Sr. Ho Options &esult

InPercent

(%)1 Yes 8 #!##2 "o 2 1#!##

# Sometime ##!##$rap ical &epresentation


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)ata interpretation

Majority of the Retailers are saying that producer do finance to usvery fe& say no and 00: retailer says that some time do finance.

Table #: ct as lin* bet+een Producers and buyer


InPercent

(%)1 Yes 11 ,#!#2 "o - 2.!,



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)ata interpretation

%he act lin# bet&een Producer and buyers majority of Retaileras agree of this statement and very fe& say no any act lin# bet&een them.

Table "o -: Problems /aced in meeting the demand of thecustomers.


InPercent

(%)1 Yes . 1 !2 "o , , !# Sometime 2 2 !



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)ata Interpretation

(bove graph sho&s ma'imum Retailers are saying not get any problem /aced in meeting the demand of the customers$ /A: saysometime and very fe& say yes.

Table : Promotional acti0ities conducted by retailer


InPercent

(%)1 Yes 12 8 !2 "o # 2 !



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)ata interpretation(bove graph sho&s most of Retailers conducts the promotional

activities and very say not need to promotional activity.

Table .: &oute o/ sellin


InPercent

(%)1 Yes 1 .,!2 "o ##!



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)ata Interpretation

Most of retailers say &holesaler distribution route o/ sellinis /i ed and 0ery /e+ say no!

Table ,: In/ormation re ardin pricin o/ t eProduct /rom customer


InPercent(%)

1 Yes 8 #!##2 "o ##!### Sometime 2 1#!##


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)ata interpretation

%he ma'imum customers give the feed bac# 01: customers not givefeed bac# and very fe& some time give the feed bac# of product price.

Table 8: Pattern o/ t e distribution


InPercent

(%)

1 Producer 3 4onsumer 5 %2 Producer 5 &etailer5 4onsumer 5 %# Producer 5 6 olesaler5 &etailer5 4onsumer 1 1 %- Producer 5 ent5 &etailer5 4onsumer 5 %

Producer 5 ent5 6 olesalers5&etailer54onsumer 5 %. Producer 5 ent54onsumer 5 %


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)ata interpretation (ll of the retailers say that the pattern of distribution is

producer3&holesaler3retailer3consumer.

Table 7: 'actors t at a//ects t e c oice o/ c annelo/ Distribution


InPercent

(%)1 Product 4 aracteristics # ##!#2 ar*et 'actor o/ consumer /actor 2 !# company or enterprise /actor - 2.!.,- 9n0ironment /actor # 2 !



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)ata interpretation

Product characteristics company or enterprise factor affect more inchoice of channel distribution mar#et factor of consumer environmentfactor comparatively less affect

Chapter-5 V

+in!in # * S" e#tion

+in!in #


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. If Retailers give the demand supplier fulfill the the demand at proper

time.

2. %he Majority of the Retailers give finance to Producer &hich is also

an additional benefit for their business.

1. 4onsumers don@t /ace any problem in meeting the demand for

products.

4. Most retailers conduct promotional activity.

6. Bholesaler@s channel of distribution is fi'ed.

. Pattern of distribution is common i.e.

Producer3 Bholesaler3 Retailer34onsumer

S" e#tion#

-> Promotional activities should be conducted at large to boost

sales and attract ne& customers.


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/> (de2uate changes in distribution channel should be done as

per demand in situation.

Chapter-5 VI

Appen!i,


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QuestionnaireName-

Place-

1. Does the Demand and supply much?a) Yes b) No.

/. Do you fnance the producer?

a) Yes b) No c) Sometime.

A) If yes for what purposea) Last scale production

b) Before technique production

c) Storage funds

d) If other specify

0. Do you us act as a link between producer and buyer?

a) Yes b) No.

1. Do you as ace any problem in meetin! the demand o the customers?

a) Yes b) No c) Sometime

D. Do you conduct any promotional acti"ity?

a) Yes b) No.

A) If yes the promotional activity.


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a) Advertisements

b) Personal selling

c) Sales promotional

#. $ your rout o sellin! f%?a) Yes b) No

G. Do you take in ormation re!ardin! pricin! o theproduct rom customer?

a) a Yes b) No c) Sometime.

8. &hat is your pattern o the distribution?

a) Producer!"onsumer.

b) Producer!#etailer!"onsumer.

c) Producer!$holesaler! #etailer!"onsumer.

d) Producer!Agent!#etailer!"onsumer.

e) Producer!Agent!$holesalers!#etailer!"onsumer) Producer!Agent!"onsumer

'. Name the actors that a(ect the choice o channel o distribution?

A Product characteristics.

a) Purchase frequency.


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b) Perisha%ility.

c) &et of product.

d) Sealing prices

e) Standard product.B 'ar(et factor of consumer factor.

a) Indirect mar(et.

b) No of Purchase

c) &eographical distri%ution.

d) Si)e of order.

" "ompany or *nterprise factor.

a) +inical recourses.b) Si)e of the company.

c) Product 'i,.

d) Attitude of company e,ecutives.

- *nvironmental factor.

a) *conomical factor.

b) Social factor.

2. BIB7I% RAP;


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-> Mar#eting Management 3 Philip 6otler

/> )istribution channel 3 S.L. Physical )istribution Management E M.N.6ul#arni

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Sandip Distribution Channel Agrocel