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
response inpercentage
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
response inpercentage
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.