distribution channel of ctm

7/30/2019 distribution channel of ctm

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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 availablefor use or consumption.

Channel decisions affect other marketing decisions

involve long-term commitments


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Role of Intermediaries

Greater efficiency in making goodsavailable to target markets.

Intermediaries provideContacts

Experience

SpecializationScale 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

RetailersRetailers

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 goalsand satisfy the target market.

Focus on individual goals leads to conflict

Horizontal Conflict occurs among firms at the same levelof the channel.

Vertical Conflict occurs between different levels of thesame channel.


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Channel Design Decisions

Analyzing Consumer Service Needs

Setting Channel Objectives & Constraints

ExclusiveDistribution

SelectiveDistribution

IntensiveDistribution

Identifying Major Alternatives

Evaluating the Major Alternatives


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Channel Management Decisions

Selecting

Motivating

Evaluating

FEEDBACK


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Company profile

CHENAB TEXTILE MILLS is part of Sutlej Textiles AndIndustries Ltd., a Blue-chip company of Dr.K.K.Birla Group. Themanagement of the company vests with the Board of Directorscomprising eminent, experienced, industrialists & professionals.Majority of the Directors on the Board are Independent.

The Board is headed by Shri C.S.Nopany (Chairman of theCompany). Shri C.S.Nopany a qualified Chartered Accountant.He also holds Master Degree in Science (IndustrialAdministration) from Carnegie Mellon University, Pittsburgh,

USA. He is a past President of Indian Chamber of Commerceand 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 TextileMills.

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 movesfrom the mill.

To study the relationship between Depots & Mill and Agent &Depots.

To provide the company the suggestions and recommendationsfrom 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 followingplaces

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 Interpretationmethod of distribution of the company

method No. of depots percentage

Indirect 1 12.5

Direct + Indirect 7 87.5

Total 8 100

Graph showing the method of distribution

0

20

40

60

80

100

indirect direct&indirect

response inpercentage

METHODS


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SOURCE OF MARKET INFORMATION

Source No. Of depots Percentages

Market Research 2 25

Agents 3 37.5

Both (Market Research

And agents )

3 37.5

Total 4 100

Graph showing sources of marketing information

0

5

10

15

20

2530

35

40

market

research

agents M.R&agents


SOURCES


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SHORTAGE IN SUPPLY OF GOODS TO DEPOTS

Shortage in supply No. of depota Percentage

Not at all 2 25

Few times 6 75

Total 8 100

Graph regarding supply of goods to depots

0

10

20

30

40

50

60

70

80

not at all few times


supply


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PROMOTIONAL ACTIVITIES

Rating percentage

Poor 0 00

Below average 0 00

Average 2 25

Good 3 37.5Very good 3 37.5

Total 8 100

0

5

10

15

20

25

30

35

40

poor below avg avg gooo very good

no of depots

percentage


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SATISFACTION REGARDING WORKING OF AGENT

Rating No of agents Percentage

poor 1 12.5

Below average 1 12.5

average 3 37.5

good 2 25

Very good 1 12.5

Total 8 100

0

5

10

15

20

25

30

35

40

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 Chenabtextile Mills, Direct sales cover approx10% of the total sale of thecompany depot sale covers approx 75% and agent sale coversapprox 15% of the total sale of the company .It has been found outthat depot sales cover majority of the sales of CTM. So, thecompany 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

whatevergets from the company, in monetary terms or in any other forms ofnon financial incentives.

3. More emphasis is being given to the production side in the

company rather than to marketing side though marketing andsales activities are responsible for earning revenue for thecompany.

4. Less emphasis is being given on marketing research, whichprovides 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 seemsto be neglected because the company products were ingreat demand. However the scenario is changing, whichmakes it necessary for the company to establish a full-fledged marketing department. The company shouldchange 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 agentsare the other avenues available to the company. Hence thecompany may concentrate on direct sales marketing

through personal selling or marketing representativefollow up with industrial consumers. Besides promotingthe sales through agents who are in the immediate vicinityof the consumers and also in close liaison rather thandepending on the now very old distribution through

depots.

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Recommendations

3. The company should develop a marketing informationsystem, at present through its depot managers andexisting agents further with the help of personal sellingstaff.

4. The company is advised to formulate a promotion mixkeeping in mind a changing scenario of market. To beginwith, the company may advertise the product and thecompany brand in industrial journals like Textile Asia &in future introduce sales promotion through additionalagents 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 makethe project in such a way which is beneficial for thecompany.

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CTM Distinction

Biggest single location spinning mill in India to produceddyed yarn having 170000 spindles and productioncapacity 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 fromvarious fibers like Cotton, Polyester, Viscose, Acrylic

Wool, Silk, Linen and their blends in Grey, dyed-fibre dyedor yarn dyed, Melange, Grindle etc., in single, double ormultifold for weaving, knitting or in any other applicationincluding specialty yarns like, Slub, Neps, compact etc., incount 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 useits trade mark for CTM products.

IS/ISO 9001:2000 certified company for over more than adecade.

Oeko-Tex standard 100 certified unit by ShirleyTechnologies Ltd, U.K. to meet Human - Ecologicalrequirements.

Gots/Eko Certified unit by Control Union Certificates,Netherland for meeting global organic textile standards.Manufacturer and exporter of cotton yarn made fromorganic cotton.

distribution channel of ctm

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