INTRODUCTION

MARKETING CONCEPT
Marketing is needed an ancient art; it has been practiced in one form or the
other since the days of Adam and Eve. Its emergence in the market management
discipline However is of relatively recent orgin. And within this relatively short
period, it has gained a Great deal of importance .In fact, today most
management thinkers and practitioners all Over the world regard marketing as
the most important of all management function in any Business.
Marketing is a comprehensive term and it includes all resources and a set
ofActivities necessary to direct and facilitate the flow of goods and services
from producer to Consumer in the process of distribution.

There are twin activities,which are most significant in marketing

1)Matching the product or service with demand, i.e. customer needs and desires
or target Market.
2)The transfer of ownership and possession at every stage in the flow of goods
from the Primary producer to the ultimate consumer.

Definition of market:The father of marketing philip kotler defines a market thus:A market consists
of all Potential customers sharing particular need or want who might be able to
Engage in the exchange process to satisfy that need or want
Definition of Marketing

Marketing in particular is defined as a social and managerial process by which

Individuals and groups obtain what they want through by creating offering
and exchanging Products of value with others.

The Evolution of Marketing

The pre industrial revolution world was characterized by barter system and then
the Agricultural cum handicraft economy..There was no elaborate distribution
system,the need And habits of the people and the prevalling technology did not
demand such a system.

The stage of money economy

The next stage in the evolution of marketing was that of money economy. The
Change was limited to the replacement of the barter system by the money
system, pricing Becoming the mechanism of the exchange process.

The stage of industrial revolution

The industrial revolution was the next stage. Far reaching changes took place in
this Stage. It introduced new products new systems of manufacturing ,new
modes of Transportation and communication brought about a variety of low
priced goods in abundance, This stage also generated income revolution.

The elements of the marketing mix are :

Product mix
Price mix
Promotion mix

 Distribution mix
Since the topic for the study is distribution late us have a detailed study what
distribution is and how it works.

MARKETING MANAGMENT
A special note on Distribution
Companies are increasingly taking a value network view of their business.
Instead hey are examining the whole supply chain that links raw material,
component and manufactured goods and shows they move towards the final
consumer. In todays economy, most producer do not sell their goods directly to
the final user. Between them and the final user stand a host of marketing
intermediaries performing a variety of function and bearing a variety of names.
Some intermediaries such as wholesalers buy take and resell the merchandise
known as the merchant middleman . others such as brokers, manufacturers
representative and sales agent search as customer and may negotiate on behalf
of producers but do not take title to the goods known as agents and there are
others who assist in the performance of distribution but neither take title to
goods nor negotiate or sell are called as facilitators.

WHAT IS A DISTRIBUTION CHANNEL ?

The marketing system of any country is made up of a vast manifestation of the
organizations and individuals linked by information, products, negotiation,
money and people of these , institutions and individuals act as pipeline that
connects the makers

Of products with people and organizations that consumes product .This

channel in the marketing system seeks to satisfy the needs and want of target
and users and objectives of the channel participants.
Philip kotler defines distribution channel as a set of independent organizations
involved in the process of making product, commodity or service available for
use or consumption.
THE ROLE OF DISTRIBUTION CHANNELS
Significance of the channels of distribution can be compared to the pipeline
system or the routes that connect two points. They are lifelines in the palm of
marketing system.
Management expert peter Drucker explains ,channels are primary and
products are secondary and deserve much more attention and study than they
usually receive.It is the trade channel that creates value added to allproducts
and services. Distribution channel decisions are among the most critical
decisions facing management.
It represents a significant corporate commitment to large number of
independent companies whose business is distribution and to the particular
market they serve. Precisely, it is less expensive and complicated to deal
indirectly than directlywith the final users
Therefore management must choose channels with an eye on tomorrows likely
selling environment as well as todays.
DISTRIBUTION CHANNEL FUNCTIONS

A distribution channel performs the work of moving goods from producers to

consumers. It overcomes the time ,place and possession gaps that separate
goods and services from those who need or want them .
Members of the distribution channel perform a number of key function:
They gather information about potential and current customers,
competition and other actors and forces in the marketing environment.
They develop and disseminate persuasive communication to stimulate
purchasing and also place orders with manufacturers.
They assume risks connected with carrying out channel work.
They reach agreements on price and other terms so that transfer of
ownership or possession can be affected.
They provide for the successive storage and movement of physical
products.
Distribution channel solves the geographical distance.
Distribution channel helps to forecast the demand.
Distribution channel helps in marketing research.
Distribution channel ensures the success of other marketing efforts.

CLASSIFICATION OF DISTRIBUTION CHANNELS

The distribution channels are classified as conventional and non-conventional;
the following diagram clearly explains this:
CHANNELS OF DISTRIBUTION

CONVENTIONAL

NON-

CONVENTIONAL

DIRECT

IN-DIRECT

VERTICAL

HORIZONTAL

ADMINISTERED

CONTRACTUAL

CORPORATE

Levels of distribution channels

A zero level channel consists of a manufacture selling directly to the final
consumer.
A one level channel contains one selling intermediary such as retailer.
A two level channel contains two intermediaries like the wholesaler and the
retailer.
A three level channel contains three intermediaries such as wholesalers,
jobbers and retailers.
CHANNEL CHOICE
CONVENTIONAL
A. MANUFACTURER-CONSUMER

This zero level channel is the shortest and simplest of all channels available
to the company. It is the direct channel in which a manufacturer without any
intermediary participating in the pathway transfers the product directly to the
consumers.
B. MANUFACTURER-RETAILER-CONSUMER
This one level channels consists of one type of intermediary called retailer,
through whom a manufacturer sells goods to the consumer .In this channel the
manufacturer moves away from consumer by one step and as such the
directness of contact is proportionally reduced.
C. MANUFACTURER-WHOLESALER-RETAILER-CONSUMER
This channel consists of two types of intermediaries wholesaler and retailer
through whom a manufacturer channels his product to the consumer, here again
the manufacturer moves away from the ultimate consumer owning to the
appearance of wholesaler between him and retailer. This is the most traditional
channel being followed in India by many companies.

D.MANUFACTURER-WHOLESALER-SEMI-WHOLESALER
RETAILER-CONSUMER
It is an indirect, and the largest channels of distribution consisting of
three intermediaries wholesaler , semi-wholesaler and retailer respectively. Here
the manufacturer stands further away from the ultimate consumer owing to the
appearance of the thee intermediaries.

NON CONVENTIONAL:
A. VERTICAL CHANNEL
Vertical channels are those , which are professionally managed and
centrally programmed networks that are pre engineered to achieve
operating

economies and maximum market impact. These vertical

channels are of three types namely

a) Administered one in which coordination of marketing activities is
achieved through use of programmes developed by one or limited
number of firms
b) Contractual is one in which the independent channel components
integrate their program on contractual lines to attain the economies
and enhance the market impact.
c) Corporate is one in which the channels components are owned and
operated by the same organization.
B. HORIZONTAL CHANNEL
Horizontal channel is the one in which two or more companies join
their hands to exploit a marketing opportunity or opportunities, either by
themselves or by creating an independent unit.

NECESSITY AND USE OF MARKETING

INTERMEDIARIES
Why is the producer willing to delegate some of the selling job to
intermediaries?
The delegation means relinquishing some control over how and whom the
products are sold . The producer appears to be placing the firms destiny in the

hands of the intermediaries . The following are the advantages a producer gains
by employing intermediaries in the midst.
Many producers lack the financial resources to carry out direct marketing,
which would require many producers to become middleman for the
complementary products of other products in order to achive mass
distribution economies.
Producers who can afford to establish their own channels can often earn
greater return by increasing their investment in their main business.
If a company earns 20 percent return on manufacturing and foresees only
10 percent return on retailing, it will not want to undertake its own
retailing business.
FACTOR INFLUENCING THE CHOICE OF CHANNEL
There are myriad of factors both subjective and objective varying from product
to product which give rise to channel choices.
Following is the threadbare analysis, each having a set of factors.

A. MARKET FACTORS
1. Consumer
a) Number
b) Location
c) Purchase pattern
2. Existing market structure
3. Competitors channels
4. Intermediaries
B. PRODUCT FACTORS
1.Physical nature
2. Market position

3. consumer product
4.purchase nature
C. FINANCIAL FACTORS
1. Sales volume
2. Return on investment
D. INSTUTIONAL FACTORS
1.Financial ability of channel members
2. Promotional ability of channel members

CHANNEL DESIGN DECISIONS

Designing a channel system calls for analyzing customer needs establishing
channel objectives, identifying the major alternative and evaluating them
Designing a channel system involves eight steps:
1.ANALYSING THE CUSTOMERS NEEDS
Here the marketer must understand the service output levels desired by target
customers. Channels produce five service outputs they are:
a) Lot size: The number of units the channel permits a typical customer to
purchase on one occasion.
b) Waiting time: The average time customer of that channel wait for the
receipt of goods, they generally prefer fast delivery channels.
c) Spatial convenience: The degree to which the marketing channel makes
it easy for the customers to purchase product.
d) Product variety: The assortment breadth provided by the marketing
channel, Normally customers prefer a greater assortment.
e) Service backup: The add on services provided by the channel such as
(credit, delivery , installation) more the services backup provided by the
channel, keep the customers increasing. The marketing channel designer
must know the service outputs desired by the target customer.

2) ESTABLISH OBJECTIVES AND CONSTRAINTS

Channels objective should be stated in terms of targeted service output levels.
Under competitive conditions channel institutions should range their functional
tasks to minimize total channel costs with respect to desired levels of service
outputs. Effective planning requires determining which market segments to
serve and the best channels to use in each case. Each producer develops its
channel objectives in the face of constraints stemming from

Product characteristics
Middlemen characteristics
Competitive characteristics
Company characteristics
Environmental characteristics

3) IDENTIFYING MAJOR CHANNEL ALTERNATIVES

After a company has defined its target market and desired positioning. It should
identify its channel alternatives. A channel alternatives is described by three
elements:

1. TYPES OF INTERMEDIARIS
A firm needs to identify the right types of intermediaries available to carry on its
channel work.

2. NUMBER OF INTERMEDIARIES
Companies have to decide on the number of middleman to use at each channel
level. Three strategies are available:
a. Exclusive distribution: It means severely limiting to the number of
intermediaries and used when the producer wants to maintain control over
service level and outputs offered by the resellers and often involves
exclusive dealing arrangement, here the producer hopes to obtain more
dedicated and knowledgeable selling.
b. Intensive distribution: Its consists of the manufacturers placing goods
or services in as many as outlets as possible, manufacturers use this to
increase coverage and sales.
c. selective distribution: Involves the use of more than a few but less than
a few but less than all of the intermediaries who are willing to carry a
particular product .The producer must also determine the rights and
responsibilities of participating channel members . The main element in
the trade relations mix are price policies, conditions of sale territorial
rights and specific services to be performed by each party. Mutual
services and responsibilities must be carefully spelled out especially in
franchised and exclusive agency channels.

3. EVALUATE MAJOR ALTERNATIVES

Each channel alternatives needs to be evaluated against economic control and

adaptive

criteria. Each channel alternative will procure a different level of

sales and costs and the next step is to estimate the costs of selling different
volumes through each channel. Channel evaluation must be broadened to
include control issues.
To develop a channel , members must make some degree of commitment to
each other for a specified period of time. In rapidly changing volatile or
uncertain products market the producer needs channel structures and policies
that provide high adaptability.
5. TRAINING CHANNEL MEMBERS
Companies need to plan and implement training programs for their
intermediaries and keep them updated with the latest developments.
6. MOTIVATING CHANNEL MEMBERS
The company should provide training programs, market research programs , and
other capability building programs to improve intermediaries performance. The
company must constantly communicates its view that the intermediaries are
partners in a joint effort to satisfy end users of the product.
7. EVALUATING CHANNEL MEMBERS
Producers must periodically evaluate intermediaries performance against
such standards as sales quota attainment. Average inventory levels, customer
delivery time, treatment of lost and damaged goods and cooperation in
promotional and training programs.

8. MODIFYING CHANNEL ARRANGEMENTS

A producer must periodically review and modify its channel arrangements.

Modification becomes necessary when the distribution channel is not working
as planned , consumers buying patterns change the market expands new
competition arises, innovative distribution channels emerges, and the product
moves into later stages in the product life cycle.
The most difficult decision involves revising the overall channel strategy,
distribution channels clearly become outmoded and a gap arises between the
existing distribution systems and the ideal system that would satisfy target
consumers needs and desires.

RESEARCH DESIGN

STATEMENT OF THE PROBLEM

The purpose of this study is to known the effectiveness of distribution channel
of

Navneet Publication pvt.ltd. To suggest measures to improve the

effectiveness of distribution channel of Navneet Publication pvt. ltd.

OBJECTIVES OF THE STUDY
The study is conducted to find out:
To identify the effectiveness of the distribution channel of Navneet
Publication pvt.ltd.
To suggest measures to improve companys distribution channel and set
new markets.
Customer awareness about Navneet Publication pvt. Ltd.
To understand and improve the distribution strategy in accordance with
competitors strategy.
SCOPE OF STUDY
The scope of the study is limited to dealers, contractors in an around
Malleshwaram Bangalore.

RESEARCH METHODOLOGY
The research is exploratory research. The research methodology is primarily
based questionnaire prepared to ensure maximum coverage for the research
objective. The questionnaire will be prepared to ensure that the sufficient data,

information and analysis will be available to support the conclusion and

recommendations.
Two kinds of data were used in this study:
Primary Data.
Secondary Data.
PRIMARY DATA
The primary data for this study was collected using the undistinguished
Questionnaire method. The questionnaire method was applied to collect the data
from the Manager. This tools was applied to get the consumer view about the
industry . The questionnaire concentrated on communication accepts of
knowledge of the manager, their views, opinion, tastes, and suggestions which
are useful to improve the efficiency and broadening the companys existing
market share.
SECONDARY DATA
The secondary data required for the study was collected from the company
brochure, journals, books, magazines websites related to the subject of the
study. Number of vivid talks and discussions had conducted with the company
officials to get the desired results.

RESEARCH APPROACH / DESIGN

All research approaches can be classified into one of the three general
cetegories of research:

Exploratory research

SAMPLING DESIGN
Sample is a subset of the total population selected in a deliberate manner to
project the characteristics of the entire population.
Sample size: 30
TARGET POPULATION
I, considered a opinion of corporate and business people , sales executives , to
improve the value of study.
PLAN OF ANALYSIS
The data was collected using a questionnaire and were properly tabulated,
analyzed and interpreted.
LIMITATION OF THE STUDY
The statistical technique used in the study may have certain limitations
therefore all those limitation will apply to the study.
The sample size of questionnaire method was limited to 50
respondents only.
The company could not reveal to us all the information some need to
be kept confidential.
COMPANY PROFILE

The term publishing means, in the broadest sense, making something publicly
known. Historically, it came to refer to the issuing of printed materials, such as
books, magazines, periodicals, and the like; it now also encompasses issuing
such materials in an electronic form. There is, however, great latitude of
meaning, because publishing has never emerged, and cannot emerge, as a
profession completely separate from printing on the one hand and the retailing
of printed matter on the other.
Early History
The practice of making extra copies of manuscripts goes back to ancient times;
in Rome there were booksellers-Horace mentions the Sosii, who were
apparently brothers-and the copying of books by trained slaves reached
considerable proportions. With the introduction of printing into Europe in the
middle of the 15th cent.
The Emergence of Publishing Houses

The first important publishing house (1583-1791) was that of the Elzevir family
in Holland (see Elzevir, Louis). The Elzevirs were businessmen rather than
scholars, and the business of bookselling grew as literacy increased.
Concurrently, printing, publishing, and bookselling spread learning across the
West. Religious controversy bred polemics, and arguments printed in
broadsides, pamphlets, and books were handed out zealously and bought
eagerly by partisans. An interest in knowing the future also increased the
amount of literature issued by bookseller-publishers, and almanacs and the like
were issued for the wider public.
With the steadily broadening mass of readers, great publishing houses slowly
came into being; many were well established by the late 18th cent. Leipzig had
become a printing center in the 15th cent. and retained its eminence, along with
Munich; most of the larger German cities had flourishing publishing concerns
by the end of the 19th cent. Modern European cities with long traditions of
publishing are Vienna, Florence, Milan, Zrich, Paris, London, and Edinburgh.
In the United States, Boston, Philadelphia, and especially New York City took
the lead.

PUBLISHING LIFECYCLE

The Indian book publishing industry

The Indian book publishing industry is very attractive and has a high growth
potential, but is operating in an extremely competitive market, with over 16,000

largely small publishers spread across the country. With the Indian economy and
the education sector booming, the industry is at a new juncture of growth and
competition.
As of 2007, the Indian book publishing industry was estimated to have a market
size of about Rs. 9000 crores and was expected to grow by 10% each year. The
industry is highly fragmented and competitive in nature, with over 16,000
publishing houses and each of them having a market share not greater than 5%.
Most of these publishing houses are family owned businesses, having passed on
from one generation to the next.
Around 80,000 new titles in 24 different languages are published every year in
India. The country is the 7th largest book publisher in the world and is the 3rd
largest English language books market in the world after the U.S and U.K.
However, it has a very low per capita expenditure per annum on books of Rs. 80
as compared to Rs. 4000 in U.K. 1
Segmentation and Key Players
The book publishing market can be segmented according to the type of books
School level, Higher education/Technical, General/Self help and Fictional/NonFictional - and the price point at which the players are perceived to be present in
the market.
Several players in the industry have a national presence the prominent ones
being Penguin Books India, Oriental Longman, Rupa Publications, McMillan, S
Chand, Navneet and Parragon. Most of these players have established their
positions across only a few types and price points as shown in Exhibit 1 below.

Exhibit 1

Book Publishing Industry Market

Market Attractiveness
Overall market attractiveness 2 of the Indian book publishing industry is very
high. This is due to strong market growth, supportive government policies, low
supplier and buyer power, low rivalry and high industry margins. However, the
industry faces threats from new entrants owing to low barriers to entry. The rise
of substitutes like e-books and online education will be a serious threat in the
years to come. Any player aiming to gain a sustainable competitive advantage in
the industry needs to create a strong brand to increase barriers to entry and at
the same time needs to formulate strategies to combat the threat of
substitutes.
We now explore the various dynamics and characteristics of the book publishing
industry in India.

Key Insights about the Book Publishing Industry

Two stark aspects of the book publishing industry are as follows:

Pull driven: In a book publishing industry, it is the consumer who demands the
books for his or her needs. Marketers cannot push a customer to read a book;
the consumer decides what he/she will read. Owing to this, the industry is
highly price inelastic and provides a good margin for every player in the value
chain. This further ensures that there is enough room for the new entrants and
no price competition.
Value-addition by Publishers: A look at where the money flows in a value
chain, as seen in Exhibit 2 and Exhibit 3, shows that over 55% of the value is
added by the publisher, but only 12.5% of it is captured as profits. The
maximum profits are reaped by the retailers who, in most cases, bear the risk of
sale. Thus, the publishers run a stable, low-risk business.

Exhibit 2

Value Chain of Indian Book Publishing Industry

Exhibit 3 Value Split in the Value chain

Market Driving Forces
Three key forces drive the growth of book publishing industry in India:
1.High Attractiveness: High and sustainable margins for all the players in the
value chain ensures that each player gets his own rightful share in the value
chain, prompting and motivating them to stay and grow in the value chain.
2.High Potential: With the literacy rate going up, along with the growth of the
economy and the increase in spending power, the demand for books is also on
the rise, thereby resulting in high growth for the industry too. There is a huge

untapped potential in India because these factors are only bound to become
more favorable in the future, and drive the growth of the industry.
3.Protection from economic shocks: Books are commodities for the education
industry. Since the education industry is protected from any economic shocks
(recessions/slowdown etc), the book publishing industry also gets an automatic
shield against such shocks.
Having understood the structure of the book publishing industry, we now
analyze the current position of Navneet Publication vis--vis the industry.

COMPANY PROFILE
Navneet Publications

Type

Public BSE: 508989

Industry

Publication& Stationery

Founded

1959

Headquarters

Mumbai, Maharashtra, India

Key people

Shivji K Vikamsey, Chairman & Amarchand R Gala, MD

Products

Books & Stationery

Revenue

528.42 crore (US$116.25 million)(2010)

Employees

1200

Website

Official Website
HISTORY

Navneet Publications India Limited, founded by the Gala Family, is in the

business of Educational and children Books Publishing, Scholastic paper
stationery and non-paper stationery products.

Since 1959, Navneet has been a major force in the dissemination of knowledge.
NAVNEET is a dominant player in the field of publishing, with more than 5000
titles in English, Hindi, Marathi, Gujarati and foreign languages.
In 1987, to further strengthen and consolidate the business of book publishing,
NAVNEET

installed

ultramodern

printing

press

at

Dantali,

District

Gandhinagar, Gujarat . By 1991, sophisticated printing and binding machineries

had been imported to complete the modernization-cum-expansion plans of the
company.
In 1993, Navneet saw opportunity in the exports of Stationery products for
which it now has state-of-art manufacturing facilities in Vasai (near Mumbai)
Daman and Silvassa (Union Territories bordering Maharashrta and Gujarat). In
the same year Navneet also launched its paper stationery products for the
domestic market. Products range includes tight bind note books, long books,
hard case bound books and drawing books.
The company enjoys leading position in premiere stationery markets in India,
the Middle East, parts of Africa, U.S.A. and Europe. With now more than 500
SKU's, Navneet is one of the largest paper stationery brand in India.
In 2006, taking the success of the Paper Stationery products further, Navneet
launched its first range of non-paper stationery FfUuNn Pencils. The company
has aggressive plans in this segment.

OUR MISSION AND VISSION

Vision:Our vision is to be recognized as the most trusted and efficient
Manufacturer globally.

Mission: Anticipate the clients requirements and to exceed their expectations.

Improve our standard of production by employing innovative
production
Techniques.
Always provide quality service to our clients for a long term
relationship.

BUSINESS

BOOKS
For over 4 decades, Navneet has been consistently producing high quality and
dependable Indian school curriculum books and mass-market children books
that have helped millions of students across India.
Navneet today has published till date more than 4,500 titles in several Indian
and International languages.

Alphabet

Children Book

ICSE model Test

More Fun

Papers

Crayons

Flying ABC

Greg's Grammar

Rainbow ABC Value Education