INTRODUCTION

We consider direct marketing early in the term as a “contrast” situation

against which later channels can be compared. In general, you cannot save
money by “eliminating the middleman” because intermediaries specialize in
performing certain tasks that they can perform more cheaply than the
manufacturer. Most grocery products are most efficiently sold to the
consumer through retail stores that take a modest mark-up—it would not
make sense for manufacturers to ship their grocery products in small
quantities directly to consumers.

Intermediaries perform tasks such as

 Moving the goods efficiently (e.g., large quantities are moved from
factories or warehouses to retail stores);
 Breaking bulk (manufacturers sell to a modest number of wholesalers
in large quantities—quantities are then gradually broken down as they
make their way toward the consumer);
 Consolidating goods (retail stores carry a wide assortment of goods
from different manufacturers—e.g., supermarkets span from toilet
paper to catsup); and
 Adding services (e.g., demonstrations and repairs).

Firm level objectives: It is not enough to simply state a firm’s goal as

maximizing the present value of total profit since this does not differentiate
it from other firms and says nothing about how this objective is to be
achieved. Instead, a business and marketing plan should suggest how the
firm can best put its unique resources to use to maximize stockholder value.
A number of resources come into play—e.g.,

 Distinctive competencies—knowledge of how to manufacture, design,

or market certain products or services effectively;
 Financial—possession of cash or the ability to raise it;
 Ability and willingness to take risk;
 The image of the firm’s brand;
  People who can develop new products, services, or other offerings
and run the needed supports;
 Running facilities (no amount of money is going to get a new
microchip manufacturing plant started tomorrow); and
 Contacts with suppliers and distributors and others who influence the
success of the firm.


Distribution Objectives

Objectives: A firm’s distribution objectives will ultimately be highly

related—some will enhance each other while others will compete. For
example, as we have discussed, more exclusive and higher service
distribution will generally entail less intensity and lesser reach. Cost has to
be traded off against speed of delivery and intensity (it is much more
expensive to have a product available in convenience stores than in
supermarkets, for example).

Narrow vs. wide reach: The extent to which a firm should seek narrow
(exclusive) vs. wide (intense) distribution depends on a number of factors.
One issue is the consumer’s likelihood of switching and willingness to
search. For example, most consumers will switch soft drink brands rather
than walking from a vending machine to a convenience store several blocks
away, so intensity of distribution is essential here. However, for sewing
machines, consumers will expect to travel at least to a department or
discount store, and premium brands may have more credibility if they are
carried only in full service specialty stores.

Retailers involved in a more exclusive distribution arrangement are likely to

be more “loyal”—i.e., they will tend to

 Recommend the product to the customer and thus sell large

quantities;
 Carry larger inventories and selections;
 Provide more services

SCOPE OF THE STUDY

The main scope of this study is to ascertain the effectiveness of

channel of distribution and various methods to increase the sales
 volume of the concern. The methods include regular information to
the buyers creating a brand position in the market and taking measures
to make the brand remain in its position. One of the important aspects
of this study is also to increase the market segment for the product.

METHODOLOGY USED IN THE STUDY

“Marketing Research is the systematic designing, collection, analysis, and

reporting of data and finding relevant to a specific marketing situation facing
the company.”

The present study of Soft drinks markets in all over Patna is based on
survey methods. In survey methods, there are two types of survey. One is
Census Method and another is Sampling Method. In this sample survey
methods I have taken only a small part of the whole and data collected from
the small part are made applicable to the whole i.e. I have taken Patna and
some adjacent area of Patna like Danapur, Patna City etc.

Within the time limit, I tried my best to select the sample

representative of the whole group. During my training, I maintained
different chart for different routes during my dealer survey. I have collected
data from the distributor of Patna.

Data Sources

Primary data collection involved distributors, retailers and consumers

Research Approaches : Survey

LIMITATION OF THE STUDY

As I was asked to carry on my vocational training I found the following

limitations during my training period. So I could not collect all information
regarding my topic.

i) Shortage of time factor was one of the biggest constraints.

ii) Most stress was given on the primary data as it was difficult to
collect secondary data from the organization and distribution
since it is difficult to ascertain the authenticity of their
statements.
iii) All the observation and recommendation will be made on the
feed back obtained from survey.

SUGGESSIONS

1. A complain Register should be provided by the company to every

distributor in every route so that, retailers/customers can write their
problems. The complain register should be checked by consumer
executive and depot in charge at time to time.

2. A clear notification should be given to teach distributor and each

route agent to give cash memo (with printed number) and maintain
route card for every transaction.
