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Distribution Channels

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Distribution Channels
A set of interdependent organizations (intermediaries) involved in the process of making a product or service available for use or consumption. Channel decisions
affect other marketing decisions involve long-term commitments

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Role of Intermediaries
Greater efficiency in making goods available to target markets. Intermediaries provide
Contacts Experience Specialization Scale of operation

Match supply and demand.

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Channel Functions
Information Promotion Contact Matching

Negotiation
Physical Distribution Financing Risk taking

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Basic Channels of Distribution

Manufacturers/products

Agents/brokers

Wholesalers/distributors

Retailers

Retailers

Consumers and organizational end users

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Channel Behavior and Conflict

The channel will be most effective when:
each member is assigned tasks it can do best. all members cooperate to attain overall channel goals and satisfy the target market.

Focus on individual goals leads to conflict

Horizontal Conflict occurs among firms at the same level of the channel. Vertical Conflict occurs between different levels of the same channel.

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Channel Design Decisions

Analyzing Consumer Service Needs
Setting Channel Objectives & Constraints Identifying Major Alternatives

Intensive Distribution

Selective Distribution

Exclusive Distribution

Evaluating the Major Alternatives

Channel Management Decisions

Selecting
FEEDBACK

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Motivating

Evaluating

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Company profile
CHENAB TEXTILE MILLS is part of Sutlej Textiles And Industries Ltd., a Blue-chip company of Dr.K.K.Birla Group. The management of the company vests with the Board of Directors comprising eminent, experienced, industrialists & professionals. Majority of the Directors on the Board are Independent. The Board is headed by Shri C.S.Nopany (Chairman of the Company). Shri C.S.Nopany a qualified Chartered Accountant. He also holds Master Degree in Science (Industrial Administration) from Carnegie Mellon University, Pittsburgh, USA. He is a past President of Indian Chamber of Commerce and Indian Sugar Mills Association.

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Objective of study
STUDY: - Channels of Distribution of Chenab Textile Mills. Objectives of the Study: To study & analyze the channel of distribution of Chenab Textile Mills. To find out the channel levels. To evaluate distribution policy. To find out the number of intermediaries needed. To determine the channel alternatives. To study and analyze the stages through which the output moves from the mill. To study the relationship between Depots & Mill and Agent & Depots. To provide the company the suggestions and recommendations from the study.

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Channel distribution of the ctm

1. DIRECT SALE (10%) 2. DEPOT SALE (75%) 3. AGENT SALE (15%) APPROX Chenab Textile Mills is having the depots in the following places Amritsar, Bhilwara, Ahmadabad Bhawani, Mandi , Baroda, kolkatta. Delhi, Gorakhpur ,Indore. Jaipur, Kanpur, Ludhiana. Kishangarh, Meerut, Mumbai Panipat , Patna Solapu,Surat.

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Data analysis and Interpretation

method of distribution of the company
method No. of depots percentage

Indirect
Direct + Indirect Total

1
7 8

12.5
87.5 100

Graph showing the method of distribution

100 80 60 40 20 0 indirect direct&indirect response in percentage

METHODS

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SOURCE OF MARKET INFORMATION

Source Market Research No. Of depots 2 Percentages 25

Agents
Both (Market Research And agents ) Total

3
3 4

37.5
37.5 100

Graph showing sources of marketing inf ormation

40 35 30 25 20 15 10 5 0 market research agents M.R&agents

response in percentage

SOURCES

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SHORTAGE IN SUPPLY OF GOODS TO DEPOTS

Shortage in supply

No. of depota

Percentage

Not at all
Few times Total

2
6 8

25
75 100

Graph regarding supply of goods to depots

80 70 60 50 40 30 20 10 0 not at all few times response in percentage

supply

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PROMOTIONAL ACTIVITIES

Rating Poor Below average Average Good Very good Total 0 0 2 3 3 8

percentage 00 00 25 37.5 37.5 100

40 35 30 25 20 15 10 5 0 poor below avg avg gooo very good no of depots percentage

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SATISFACTION REGARDING WORKING OF AGENT

Rating poor Below average average good Very good Total

No of agents 1 1 3 2 1 8

Percentage 12.5 12.5 37.5 25 12.5 100

40 35 30 25 20 15 10 5 0 poor Below average average good Very good No of agents Percentage

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Conclusions and recommendations

1. Chenab textile mills follow three types of Distribution channels viz. direct sale. Depot sale and Agent sale, for its sales. In Chenab textile Mills, Direct sales cover approx10% of the total sale of the company depot sale covers approx 75% and agent sale covers approx 15% of the total sale of the company .It has been found out that depot sales cover majority of the sales of CTM. So, the company concentrates on depot sales rather than direct sale and agent sale. 2. It has been in some cases that agents are not fully satisfied with whatever gets from the company, in monetary terms or in any other forms of non financial incentives. 3. More emphasis is being given to the production side in the company rather than to marketing side though marketing and sales activities are responsible for earning revenue for the company. 4. Less emphasis is being given on marketing research, which provides the company with the information regarding the market & its dynamics. 5. Product promotion is an area which required to be geared up

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Recommendations
The study revealed that marketing is the area which seems to be neglected because the company products were in great demand. However the scenario is changing, which makes it necessary for the company to establish a fullfledged marketing department. The company should change its stance from production oriented to marketing oriented. 2. Presently the company seems to be depending on depot sales but direct sales marketing and sales through agents are the other avenues available to the company. Hence the company may concentrate on direct sales marketing through personal selling or marketing representative follow up with industrial consumers. Besides promoting the sales through agents who are in the immediate vicinity of the consumers and also in close liaison rather than depending on the now very old distribution through depots.

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Recommendations
3. The company should develop a marketing information system, at present through its depot managers and existing agents further with the help of personal selling staff. 4. The company is advised to formulate a promotion mix keeping in mind a changing scenario of market. To begin with, the company may advertise the product and the company brand in industrial journals like Textile Asia & in future introduce sales promotion through additional agents and personal selling staff which would constitute a proper mix. 5 Company should provide food and Stephen to the trainees. So that the students give their best effort to make the project in such a way which is beneficial for the company.

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CTM Distinction
Biggest single location spinning mill in India to produced dyed yarn having 170000 spindles and production capacity of 140 tons/day. Largest provider of employment (direct employment 9000) in private sector in state of Jammu & Kashmir. One-Stop shop for all types of spun yarn made from various fibers like Cotton, Polyester, Viscose, Acrylic Wool, Silk, Linen and their blends in Grey, dyed-fibre dyed or yarn dyed, Melange, Grindle etc., in single, double or multifold for weaving, knitting or in any other application including specialty yarns like, Slub, Neps, compact etc., in count range Ne6 to 60s.

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CTM Distinctions
14th spinning mill in the world authorized by Uster, Switzerland, a most respective brand name in textile to use its trade mark for CTM products. IS/ISO 9001:2000 certified company for over more than a decade. Oeko-Tex standard 100 certified unit by Shirley Technologies Ltd, U.K. to meet Human - Ecological requirements. Gots/Eko Certified unit by Control Union Certificates, Netherland for meeting global organic textile standards. Manufacturer and exporter of cotton yarn made from organic cotton.