Bbaiii 2

BBAIII
Shivaji univercity, Kolhapur
Chapter1 Introduction to study

1.1 IntroductionDistribution channel is path through which goods & services travel
form to vender to the consumer or payment for those product travel from the consumer to the
vender. A distribution channel can be as short as a direct transaction from the vender to
consumer or may include several interconnected intermediaries. A long the way such as
wholesaler, distributers, agent & retailer. Each intermediary receives the item at one pricing
point & movies it to the next higher pricing point until it reaches the final buyer. Coffee does
reach the consumer before first going through channel involving the farmer, exporter, importer,
distributor & the retailer
also called as distribution channel.
The operational success of a company depend not only on how well it

perform in terms of production & sales but also on how well its entire channel of distribution
compete with competitors channel . A company may produces the best product but still not do
well if its dealers perform poorly in sales & services against the competitors dealers . A channel
of distribution [or marketing channel ] is a sell of interdependent organization involved in the
process of making a product or services available for use or consumption by the consumer or
business user.
Researcher has selected study of distributor channel of samruddhi to know
the working of the distributor channel & its factors.
Smt.S.M.G.K.M,Sangli
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1.2 Objectives1) To study the organization structure & information of samruddhi company.
2) To study & analyze existing structure of distribution cannel samruddhi company.
3) To study the channel of intermediaries.
4) To know the satisfactory level of the company towards the network/distribution channel.
5) To study the benefits/commission provided by company to distributors.
6) To find out the nature of conflicts & control within a distribution channel.
7) To study the different channel of distribution
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1.3 Research Methodology

A study of distribution channel of Samruddhi Company with reference to Samruddhi
Company.
1] Primary DataPrimary data are those which are called fresh & for the first time & thus
happen to be original in character.
a] Interview to the manager.
b] Interview to the distributor.
c] Observation
2] Secondary DataSecondary data means data that are already available that is related to the
data which have been collected & employed by someone elese.
A] Book
b] Companys website
c] Internet
1.4 Scope1) The geographical scope is restricted to MIRAJ MIDC (In Sangli District).
2) The objective scope is restricted & near by rural area only.
3) The subjective scope is restricted to study on distribution channel in marketing area.
4) The organization scope is restricted to Samruddhi Company.
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1.5 Significance
1]
To
know
the
distributors
satisfaction
level
of
the
samruddhi
company
regarding to the network.

2] To find out the different distributors channel & working structure for the samruddhi
company.
3] It will be reference for the new researchers in companies new channel member.
4] To know the different distribution methods of the samruddhi company.
1.6 Limitation1] The study is the based on organization only therefore the scope of study is limited to the
organization only.
2) Many of the customers were not responsive
3) The area of the study is restricted to sangli districts.
4) It is assumed that the information provided by customers are true & correct.
5) Some of the respondents were not serious about their feedback.
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Chapter2 Introduction to organization

2.1 Introduction to industrySamruddhi industries limited is an ISO 9001:2008 certified manufacturer exporters,
importers & supplier of plastic goods. The company was jointly formed by helper Mr.Ramakant
Malu; Mr.Omprakash Malu & Mr. Pramod Malu in January 2001 the group of three jointly
handles production, sales & marketing, account & finance department. Since the date of
inception of the company.
Plastic have transformed our live samruddhi industries is Indias. Leading
manufacturing company of unbreakable plastic articles & many more plastic environment
friendly industries has its presence across nation.
Samruddhis Head office situated at single {Maharashtra} which runs all the major
operations to achieve & practices highest international standard of manufacturing & quality
assurance. Companies infrastructure equipped with the four ultra technology plants showing
their presence across nation in North, East, & South, western part in India.
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2.2 History of the organizationSamruddhi industry limited has establishment in 8-9-1992. This is located in Sangli,
Maharashtra this is categorized under in India. As per the last information this company is in
samruddhi industries is registered corporate office is at plot number, A-1 J-98, M.I.D.C.
Kupwad Block 416436.
2.3 Company profile

Name of managing director
Name of director
Year of establishment-
Mr.Ramakant Malu
Mr.Omprakash Malu & Mr.Pramod Malu.
8th September 1992.
Nature of the business-
Manufacturer, exporter, importer, & supplier.
Name of employees
Above 500.
Contact UsMobile No-
+91-9423677032
Fax-
+91-233-2644903
E-mail address-
Samruddhi@samruddhi.com
Website -
http://www.samruddhiindustriesIdt.co.in
Address -
J/98 M.I.D.C. Kupwad.
Head office -
Sangli.
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2.4 Products- 1) Plastic kitchenware

2] Plastic Ghamelas
3] Plastic Crates
4] Plastic Chairs
5] Plastic Bucket
6] Plastic Water drum
7] Plastic Milk can
8] Plastic Mat
9] Plastic Furniture
1] Plastic Chairs
2] Plastic Table
3] Multi Rack
4] Mini trolley
10] Plastic Kittle

11] Plastic Household Goods
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2.5 Awards from Samruddhi Company
2009-2010: EFY awards for Best Security System of the year 2009 & 2010.
2010: ET now India mart awards Leaders of tomorrow 2010 in electrical &
electronic category.
2009: Elaina-Dun & Bradstreet awards for Entrepreneurial excellence 2009.
2008: Frost & Sullivan awards for Entrepreneurial company of the year 2007-cctv
awards.
2006: Emerging security system integrator awards by Honble home minister

shivraj Patel.
Udyog patra awards for Self made industrialist to door MD.
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2.6 Subsidiaries, Associations of the company1} J-98/99, M.I.D.C. Kupwad Block, Dist-Sangli Maharashtra- 416436 (India).
2} Plot No-31 L.K.Akiwate Industrial Estates, Jaysingpur, Kolhapur-416144 Dist-
Kolhapur
Maharashtra (India).
3}
I.T.E
Patanagar,
sector
G.Plot
No.24&25,
Rudrapur
Dist-U.S.Nagar,
Uttaranchal (India)
4}
Plot
No.39&42,
Industrial
Park,
Valasapalle-Madanpalle
Mandal,
and
Dist-
Chittor Andhra Pradesh.
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2.7 Organization Structure
Board of Director
Managing director
Unit manager
Production manager
Supervisor
Workers
Finance manager
HR manager
Accountant
Clerk
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Chapter3 Theoretical Background

3.1 Introduction to distribution channelThe operational success of a company depends not only on how well it performs in
terms of production & sales but also on how well its entire channel of distribution compete
with competitors channels. A company may produce the best product but still not do well if its
dealers perform poorly in sales & services against the competitors dealers. A channel of
distribution (or marketing channel) is A set of interdependent organization involved in the
process of making a product or services available for use or consumption by the consumer or
business users.
When a product/services is purchased by a consumer, it may have been bought
directly from the business, or it may have been through a number of intermediaries
(Wholesaler, retailer etc) these are known as distribution channel.
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3.2 Role & Important of channel -
Channel of distribution (marketing channel) play an important role in marketing,

because of many vital function performed by them. Effective & well managed channel provide
sound competitive advantage to companies.
The necessity for channel of distribution arises because the product has to move to
the customer from the factory, in the right quantity, at the right time & at the right place, Very
few manufactures sell their goods directly to the final customers. The majority uses marketing
channel or intermediary to move their product from the factory to the market.
A manufacturers decision on channel of distribution directly affects all other
marketing decision. Through their contact, experience. Specialization & sale of operation,
channel member normally offer the company more than it can achieve on its own.
Marketing channel transform the bulk assortment of products made by manufactures
into small assortments wanted by the customer.
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3.3 Function of channelMember of the marketing channel perform many key function, basically, they ensure
physical distribution efficiency by bringing together the manufacturer & the customer in a cost
effective manner.
1} Provide market informationChannel provides market intelligence & other information gathered from
the market, to the manufacturers. Since they are in constant touch with the customers, they feel
the pulse of the market & provide accurate information about market condition, trends,
consumer preference, changing tastes, competitors activities etc,
2} PromotionChannels help the manufacturer by taking on the job of promotion. They

develop & spread persuasive communications about a product to customers. Many retailers
arrange window display, send direct mail to prospects, depute salesman to demonstrate product
at residences & distribute product leaflets.
3} ContactsChannel helps by reducing the number of contacts needed for reaching

consumer. No manufacturer can economically contact all the customers. The intermediaries
find the customer & do the communication & selling to them. They use their own salesman to
contact prospects & do personal selling.
4} Breaking bulkManufacturers produce & supply many products in Bulk but customer
need them in small sizes, Channel break the bulk & meet the small size need of individual
consumers. They also carry out grading & packaging in small lots according to the customers
requirements.
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5} Supply in assortmentsConsumers need an assortment of various products from various

companies. Channel do the job combining products manufactured by different manufacturers &
offer them in assortment that the convenient to customers. This function involves matching
segments of supply with segments of demand.
6} Price negotiationChannel member conduct price negotiations with buyers on behalf of

the manufacturers & assist in reaching an agreement on price & other terms of the offer which
are acceptable to both buyers & producer. For example manufacturers would have indicates a
discount rate of 10-20% on maximum retail price for a product the dealer negotiates with the
consumer & fixes the discount within that range.
7} Physical distributionSome of the physical distribution functions like transportation, handling,

warehousing, sub-distribution, order processing & inventory management are also carried out
by marketing channel.
8} Risk takingChannels absorb most of the business risk, especially the risk of failure
to sell goods, product obsolescence, or changes in the price of the goods. This risk is bome by
dealers.
9} FinancingChannels help by extending credit to customers & ensuring sales. Also

by maintaining inventories of products for manufacturers, they reduce their working capital
requirement. For example in cement, paint & fertilizer, dealer often buy on cash & extend
credit supplies to customer.
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10} SellingMarketing channel member promote product to potential customers. They

help in introducing & establishing new product in the market. Many buyers depend on the
recommendation of the dealers. Other than persuasive selling the channel also helps by
providing pre-sale & after sale service to the customers.
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3.4 Channel LevelA one level channel consists of one selling intermediately i.e. the retailer in consumer
markets. For example Modem bread sold through provision stores.
A two level channel consist of two members i.e. the wholesaler as well as the retailer in
consumers markets for example HLL, P&G, Soaps and Detergent etc.
A three level channel will contain three intermediaries i.e. Wholesaler, jobber &
retailer. For example Philips appliances-C & F agents, distributors, retailer.
A] Consumer product1. Direct marketing channel or

Zero level channels
Manufacturer
Consumer
-:
B] Indirect marketing channel

1. One level channel-
Manufacturer
Retailer
Consumer
Jobber
2. Two level channel-
Manufacturer
Wholesaler
Retailer
Consumer
C] Industrial product1. One level channel-
Manufacturer
Manufacturer
Representative
Or sales officer
Industrial
Distributors or
Agent
Industrial user
Manufacturer,
Representative or
Sales officer
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3.5 RetailingRetailing includes all the activities involved in selling goods or services directly to
final consumer for their personal non-business use. Any institution that dose this sellingwhether a manufacturer, wholesaler or retailer is doing retailer. Retailer is any business
enterprises whose sales volume primarily comes from retailer.
Types of retailingRetailers can be classified based on the following characteristics-
1} Amount of servicesVarious types of products require varying amount of services, & customers
services preference vary. Based on their services, retailers can be self- service retailer
(supermarket), limited-services retailer (shopping goods), & full-services retailer (specialty
stores).
2} Product linesClassification of retailers can also be done by the length & breath of their
product assortments. Speciality stores carry narrow product lines with deep assortments within
those lines. Department stores carry a wide variety of product lines, & each line is operated as
a separate department. Supermarkets are large low cost, low margine, high volume self service
stores that carry a wide variety of food, laundry & household product. Convenience stores are
small stores located near residential areas, open long hours, seven days a week & carry a
limited line of high turnover convenience goods. A Superstore is a store much larger than a
regular supermarket, & it carries a large assortment of routinely purchased food & non-food
item & offers services such as dry cleaning, post offices, cheque cashing, bill paying, lunch and
fast food counters, car care & even pet care.
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3} Relative pricesRetailers can also be classified according to the price they charge. Most
retailers charge regular prices & offer normal quality goods & customer services. Others offer
higher quality goods & services at higher prices.
4} how they are organizedAn increasing number of retail stores are banding together into a corporate or
contractual organization. Corporate chain stores are two or more outlets that are commonly
owned & controlled & sell similar lines of products & have centralized buying. Voluntary
chains are wholesaler sponsored groups of retailer. Retailer co-operatives are independent
retailers who set up a central buying organization & conduct a joint promotion effort.
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3.6 WholesalingTypes of wholesalingWholesaler can be classified into three major types they are-
1} Merchant wholesalerMerchant wholesalers account for 50% of all wholesaling. They

include two types- Full-services wholesalers who provide a full set of services &
limited services wholesaler who offer services to their suppliers & customers.
2} Broker & agentThey do not take title to goods & they perform only a few function.
They generally specialize by product line or customer types. A broker brings buyers
& sellers together & assists in negotiation on commission basis. Agents represent
buyers & sellers on a more permanent basis. Manufacturers agents are the most
common type of agent wholesalers.
3} Manufacturers sales branches & officesThese are set up by manufacturers to conduct wholesaling operation by
themselves. Separate branches& offices are dedicated to either sales or purchasing.
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3.7 Types of distribution channel-
The most common routes used for bringing the products in the
markets from producer to consumer are as follows-
1) Manufacturer-consumer(Direct sale)There are three alternatives in direct sale to consumer:- a) sale through
advertising & direct methods ( mail order selling ), b) sale through traveling sale
force ( house to house canvassing) c) sale through retail shops of manufacturer e.g.
mills cloths shops, Bata shoes company shops.
Usually we have numerous & scattered consumers who buy in very
small quantities. Hence this channel is not popular for a wider market.
2) Manufacturer-retailer-ultimate consumerThe channel option is preferable when buyers are large retailer e.g. a
department store, discount house, change store, super market big mall order house
or co-operative stores. The wholesaler can be by passed in this trade route. It is also
suitable when products are perishable & speed in distribution is essential.
3) Manufacturer-wholesaler-retailer-consumer:This is a normal regular & popular channel option used in groceries,

drugs, drug goods etc. It is suitable a producer under the given condition a) He has
a narrow product line b) He his limited finance c) Wholesaler are specialized & can
provide strong promotional support d) products are durable & not subject to
physical deterioration or fashion change.
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4) Manufacturer-agent-wholesaler-consumer:In this channel the producer uses the services of an agent middleman
such as a sale selling agent for the initial dispersion of goods the agent in turn sell
to retailer. An agent middleman sells on commission basis directly to wholesaler or
large retailer.
5) Manufacturer-wholesaler-consumer/user:Wholesaler may by pass retailer when there are large an institution

buyers .For e.g. business buyer, government, consumer co-operatives or hospitals,
educational institution business houses.
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Chapter4 Data analysis & interpretation

1) From how many years you are working as distributors for Samruddhi Company?
Sr no
1
2
3
4
Option
Response
1 Year or less
3
3 to 5 Year
5
1 to 3 Year
3
More than 5
4
Year
Total
15
percentage
20%
33%
20%
27%
100%
Table no-4.1
InterpretationFew of distributors have joined Samruddhi Company recently & few have
joined earlier before 3 years. Means few are freshers & other are experienced in same company.
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2) Is there any compulsion/restriction on quantity of product to be purchased by you?
Option
Sr no.
1
2
Response
Yes
No
Total
Percentage
8
7
15
53%
47%
100
Table no-4.2
Interp
Compulsion/restriction
47%
53%
1 Yes
2 No
retationFrom this above chart, it is clear that nearly half of distributors are
restricted to buy specific quantity of product to purchase while few have no such restriction on
it.they can buy as per their requirements.
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3) Is there any regional distributor superior that you?

Sr no
1
2
Option
Yes
No
Response
11
4
Total
15
percentage
73%
27%
100
Table no-4.3
InterpretationNearly half of the employees have regional superior distributors over them
& remaining half doesnt have the superior distributor over them.
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4) Do you get discount/concession on the basis of quantity of product you buy?

Sr no
1
2
Option
Yes
No
Total
Response
9
6
15
Percentage
60%
40%
100%
Table no-4.4
InterpretationFrom this above chart, it is clear that, more than half of respondent gets
discount on the basis of quantity of product they buy but few doesnt get that offer. E.g. If
distributors buy more quantity of product they will get more % of discount.
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5) Are you satisfied with the profit margin you get per product?
Sr no,
1
2
3
4
5
Option
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly
dissatisfied
Total
Response
3
6
2
1
3
15
percentage
20%
40%
13%
7%
20%
100%
Table no-4.5
InterpretationNearly more than half distributors are in satisfactory range about the profit
margin they get per product & remaining are yet dissatisfied.
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6) Are you satisfied with companys service?

Sr no
Option
Response
of
1
2
3
4
5
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly
1
5
5
3
1
respondence
7%
33%
33%
20%
7%
dissatisfied
Total
15
100%
Table no-4.6
InterpretationsThe above diagram shows that more are distributors are satisfied from
companys services facilities.7% of the distributors few in highly dissatisfied.20% distributors
are dissatisfied with companies services these are expected from the commission, discount to
the product.
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7) Are you satisfied with sale efforts of the company?

Sr no
Option
Response
of
respondence
33%
Highly
2
3
4
5
satisfied
Satisfied
Neutral
Dissatisfied
Highly
3
4
1
20%
27%
7%
13%
15
100%
dissatisfied
Total
Table no-4.7
InterpretationIt shows that the distributors are highly satisfied with the sales efforts because
they are highly satisfied with the sales commission. a very few of the distributors are not
satisfied with sales efforts.
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8) Do you have any sales force?
Sr no
Option
Response
% of respondence
Yes
47%
No
53%
Total
15
100%
Table no-4.8
InterpretationFrom this chart, it is seen that the responses are divided equally into two
groups; half of distributors says yes, they have their own sales force & remaining half dont
have their own sales force.
9) Are you satisfied with the overall sales of the product of the company?
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Sr no
1
2
3
4
5
Option
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
Total
Response
3
2
4
3
3
15
% of respondence
20%
13%
27%
20%
20%
100%
Table no-4.9
30%
27%
25%
20%
20%
20%
13%
15%
10%
5%
20%
1 Highly satisfied
2 Satisfied
3 Neutral
4 Dissatisfied
5 Highly
Dissatisfied
0%
InterpretationFrom this above chart, the 20% are highly satisfied & also same percent of
distributor are dissatisfied with companies overall sales of the product remaining have neutral
opinion about overall sales of product of company.
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10) Other than samruddhi do you have any other companys distributorship?
Sr no
1
2
Option
Yes
No
Total
Response
6
9
15
of
respondence
40%
60%
100%
Table no-4.10
InterpretationFrom above this chart, that more than half ratio of distributors doesnt have
other distributorship than samruddhi but few of them are distributors of other company.
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11) Which companys distributorship you have?
Sr no
1
2
Option
samruddhi
Other
Total
Response
6
9
15
% of respondence
40%
60%
100%
Table no- 4.11

Companies Distributorship
70%
60%
50%
40%
30%
20%
10%
0%
60%
40%
% of response
Samruddhi
1
other
2
InterpretationIt is observed that more distributors have distributorship of other company

also while other has distributorship of Samruddhi Company.
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12) How wide your dealers network is?
Sr no
Option
1
2
3
Response
In city
In small town
Both
Total
4
5
6
15
of
respondence
27%
33%
40%
100%
Table no-4.12
Dealers Network
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
40%
33%
27%
% of
respondence
In city
In small town
Both
InterpretationFrom this above chart, it is clear the dealers network that in city, small town,
both areas it is help for the wide range of distributions channel.
13) Do you have your retail sales counter too?

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Sr no
1
2
Option
Yes
No
Total
Response
11
4
15
of
respondence
73%
27%
100%
Table no-4.13
InterpretationIt shows that almost all distributors have their own retail shop of
samruddhi products i.e. they are also retailers of the products but very few dont have their own
retail shops.
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14) Are you satisfied with the credit policy of the company?
Sr no
1
2
3
4
5
Option
Response
Highly satisfied
Satisfied
Neutral
dissatisfied
Highly
3
1
2
6
3
dissatisfied
Total
15
of
respondence
20%
7%
13%
40%
20%
100%
Table no -4.14
InterpretationIt was found that out of distributors more than half of the distributors respond
that they are satisfied with the policy of Samruddhi Company remaining of the respondent were
not satisfied with some of the things related with the distribution credit policy of company.
15) Does the company shares the cost of your sales personnel?
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Sr no
Option
1
2
Yes
No
Total
Response
6
9
15
of
respondence
40%
60%
100%
Table no-4.15
Share the cost of sales personnel
40%
60%
1Yes
2No
InterpretationFew of the distributors say that samruddhi company shares the cost of the
sales personnel but few doesnt acquire with same.
16) Dose Promotion of product is your responsibility?

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Sr no
1
2
Option
Yes
No
Total
Response
9
6
15
of
respondence
60%
40%
100%
Table no-4.16
Promotion of the product
40%
60%
1Yes
2 No
InterpretationIt is observed that more than responsibility of the product promotion is upto the
distributors but others doesnt take the responsibility of promotion of product.
Chapter5 Finding & observation

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5.1 finding 1) Most of the distributors sell only Samruddhi Companys product.
2) Different distributors covers different areas form the distributors.
3) Most of customer prefers plastic products of Samruddhi Company
4)
The
publicity
done
by
the
company
is
attractive
&
the
promotional
activities conducted to promote the brand are good.

5) The customers prefers samruddhi product because it has good quality followed
reasonable price & quantity.
6) The dealers/distributors get supply of the products even if demanded Uren gently
promptly.
7) The customers are satisfied with the distribution of channel because the
company gives attractive discount to the customer & good service.
8) Company provides the credit facility to some distributors.
5.2 Observation1) It is observed that there is the good relationship between manager & customer.
2) The campus of the company is pollution free.
3) Company focus as on the customer satisfaction.
4) It is observed that all the machinery are well maintained.
5) company working strategy is well defined.
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Chapter6 Conclusion & suggestion

6.1-Suggestion1) Target setting can be concentrated by the samruddhi company.
2) After sales services play important role in selling of Samruddhi Company. Company can
take that factor as promotional tool and therefore prompt after sales service should be
provided by the company.
3) The company should try to co-ordinate activities between the distributors & the dealers.
Company should try to make sure that there is no problem.
4) It is suggested that company should provide credit facility to maximum distributors.
5) The distribution channel should be backed up by the store facility at the taluka level. It
will reduce the logistic line.
6.2 ConclusionResearcher has concluded that the distributor of the Samruddhi

product is the lifetime between the company & the end users. i.e. the customers. The
supply chain of the company should be like that there should not be less supply & there
should not be more than supply chain. than the required quantity. Also the company
should try to keep cordial relations between them. It will positively effect on the working
of the dealers & the distributors
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BIBLIOGRAPHY
Reference books-
1) Marketing management
By-Verma .M.M, Nair.N.rajan
(1995 sultanchand and sons New Delhi)
2) Marketing management
By kotler.philip
3) Services marketing
By S.M.Jha
(Himalaya publishing house)
WebsiteWWW.samruddhi.com
Search engineWWW.google.com
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BBAIII

Shivaji univercity, Kolhapur

Chapter1 Introduction to study

also called as distribution channel.

The operational success of a company depend not only on how well it

Shivaji univercity, Kolhapur

Shivaji univercity, Kolhapur

1.3 Research Methodology

Shivaji univercity, Kolhapur

regarding to the network.

Shivaji univercity, Kolhapur

Chapter2 Introduction to organization

Shivaji univercity, Kolhapur

2.3 Company profile

8th September 1992.

Nature of the business-

Manufacturer, exporter, importer, & supplier.

Contact UsMobile No-

J/98 M.I.D.C. Kupwad.

Shivaji univercity, Kolhapur

2.4 Products- 1) Plastic kitchenware

10] Plastic Kittle

Shivaji univercity, Kolhapur

2.5 Awards from Samruddhi Company

2009: Elaina-Dun & Bradstreet awards for Entrepreneurial excellence 2009.

2006: Emerging security system integrator awards by Honble home minister

Udyog patra awards for Self made industrialist to door MD.

Shivaji univercity, Kolhapur

2} Plot No-31 L.K.Akiwate Industrial Estates, Jaysingpur, Kolhapur-416144 Dist-

Chittor Andhra Pradesh.

Shivaji univercity, Kolhapur

2.7 Organization Structure

Shivaji univercity, Kolhapur

Chapter3 Theoretical Background

Shivaji univercity, Kolhapur

3.2 Role & Important of channel -

Channel of distribution (marketing channel) play an important role in marketing,

Shivaji univercity, Kolhapur

2} PromotionChannels help the manufacturer by taking on the job of promotion. They

3} ContactsChannel helps by reducing the number of contacts needed for reaching

Shivaji univercity, Kolhapur

5} Supply in assortmentsConsumers need an assortment of various products from various

6} Price negotiationChannel member conduct price negotiations with buyers on behalf of

7} Physical distributionSome of the physical distribution functions like transportation, handling,

9} FinancingChannels help by extending credit to customers & ensuring sales. Also

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10} SellingMarketing channel member promote product to potential customers. They

Shivaji univercity, Kolhapur

A] Consumer product1. Direct marketing channel or

B] Indirect marketing channel

2. Two level channel-

C] Industrial product1. One level channel-

Shivaji univercity, Kolhapur

Types of retailingRetailers can be classified based on the following characteristics-

Shivaji univercity, Kolhapur

Shivaji univercity, Kolhapur

1} Merchant wholesalerMerchant wholesalers account for 50% of all wholesaling. They

Shivaji univercity, Kolhapur

3.7 Types of distribution channel-

3) Manufacturer-wholesaler-retailer-consumer:This is a normal regular & popular channel option used in groceries,

Shivaji univercity, Kolhapur

5) Manufacturer-wholesaler-consumer/user:Wholesaler may by pass retailer when there are large an institution

Shivaji univercity, Kolhapur