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Channels for Perishable and Durable

goods-Agriculture and Industrialgoods

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Channels commonly used.

Two methods which are commonly followed for the the distribution of the goods are:-

1.Selling through direct channels

 Advantage:-

Simple and short Fast deliver of goods More profit

Better understanding of consumer

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Contd«

Disadvantages:-

Limited coverage

Non-availability of expert services of middle man.

Large investment is required.

Unsuitable for small producers.

2. Selling through indirect channels

 Advantages:-

 Wide coverage

 Availability of expert service

Suitable for small business

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Contd«

Disadvantages:-

Long channels involved

Less economical

Less profit

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Channel strategy 

There are 3 broad option available for the distribution of the goods:

 Intensive distribution

selective distribution

 Exclusive distribution

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Perishable goods

Perishable goods are those goods which have a shorter life cycle andcannot be used repeatedly.

E.g:-

Milk 

Food

Egg

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Channel for perishable goods

Tirumala milk Pvt. Ltd :-

distribution channel of Bangalore based company 

Manufacturer ± Distributor ± Retailer

80 Distributors.

Each Distributor covers 300 shops everyday.

Starts distributing milk at 3am.

Distributor Sell around 4000 liters/day.

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Distribution of mossila cake(Bangalore)

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Durable goods

Durable good or a hard good is a good that does not quickly wear out,or more specifically, one that yields utility over time rather than beingcompletely consumed in one use..

E.g:- Car

Furniture

Sports equipment

Consumer electronics .etc.

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Distribution of durable goods

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 Agriculture goods

Meaning:-agriculture products are those products which are derivedfrom nature/agricultural activities and are of some value to the endconsumers.

Eg:-

Rice

 Wheat

Tea.etc.

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 Agriculture goods

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Industrial goods

Meaning :-Industrial goods are those products which are bought/purchased by the other business for the manufacturing theconsumer goods.

Eg:- Heavy machineries

Iron

steel

coal

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Distribution of industrial goods

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Factors effecting the channels of distribution

1.Product factors

y Unit value of product

y Customized or standardized product

y Perishable producty Technical product

2.Market factors

y Number of buyers

y Buying habits.

y Buying quantity.

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Contd«

3.Company factors.

y Goodwill

y Financial position of the company.

4.Government factors.

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