Chapter 1 Intro(5)

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1.1 INTRODUCTION

Distribution is one of the components of 4Ps marketing mix (product, price,promotion and place).In simple terms distribution can be defined as the path through which

goods or services flow from manufacturer to the end user.

Most businesses use third parties orintermediaries to bring their products to market.

They try to forge a "distribution channel". which can be defined as

"all the organizations through which a product must pass between its point of production and

consumption"

A distribution channel can include wholesalers, retailers, distributors and even the

internet. Channels are broken into direct and indirect forms, with a "direct" channel allowing

the consumer to buy the good from the manufacturer and an "indirect" channel allowing the

consumer to buy the good from a wholesaler. Direct channels are considered "shorter" than

"indirect" ones. Since, distribution involves chain of intermediaries to sell its product or

service to its end users; they are also termed as channel of distribution or marketing channel.

All organizations whether big or small, include distribution channel in its marketing

strategy. It not only provides services to the organization in making its product reach its end

users in an optimum way but it also provides options, information and alternatives about

different chains through which goods and services can be delivered to the end users. In other

words, it helps in expanding the business and growing its revenues.

Effective distribution channel helps to increase the consumer base of the organization.

Through them, organizations are able to cater more number of market segments. Thereforeevery organization must understand and evaluate the entire distribution network and select

the one which helps them to increase the sales. The distribution strategy should be such that it

is able to deliver all the essential information and service required. This becomes all the

important when organization is undergoing expansion and wants to grow its business.

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The project was intended to accesses and to acquire the knowledge regarding the

effectiveness of distribution channels in sales promotion. The project, was conducted at

Vettooran Natura food products, Chirakulam road, Trivandrum. Distribution channels play an

important role in promoting sales of Vettooran Natura products, with out distribution the best

products fails.

Frequently there may be a chain of intermediaries, each passing the product down the

chain to the next organization, before it finally reaches the consumer or end-user. This

process is known as the distribution chain or the channel. Each of the elements in these

chains will have their own specific needs, which the producer must take into account, along

with those of the all-important end-user.

1.2RESEARCH PROBLEM:

A distribution channel strategy is influenced by many factors that fall

into three main categories: market, producer and product. These factors influence the way a

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product distribution channel is set up and their consideration is crucial on the decisions that

must be made by the marketing team to accomplish a successful product launch. Distribution

strategy decisions can help to create a product and business image. This image will differ

depending on where you sell your products. The distribution channels plays a vital role in the

production of products or services.

Distribution channels are venues through which products pass from the

manufacturer to the hands of the consumer. This process involves a number of intermediaries,

including agents, wholesalers, retailers and direct sales outlets.

The study limited to Vettooran Natura Food Products Pvt. Ltd. The

study aims to know the effectiveness of distribution channel

What is the role of distribution channel in creating brand awareness?

1.3 SIGNIFICANCE OF THE STUDY:

When choosing a distribution strategy a marketer must determine what value a

channel member adds to the firms product. Several surrounding features can be directly

influenced by channel members, such as customer service, delivery, and availability.

Consequently, for the marketer selecting a channel partner involves a value analysis in the

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same way customers make purchase decisions. That is, the marketer must assess the benefits

received from utilizing a channel partner versus the cost incurred for using the services.

The main objective is to know the effectiveness of distribution channel in sales

promotion. In the competitive environment, it is necessary to bring the new effective

distribution and sales strategies. If there are no suitable channels, there is a chance for

unhealthy movement of products. For better sales demands the better distribution channels

according to accessibility. Selecting the right mix of sales channels and optimizing their

performance is a critical issue with many of our clients. We work in maximizing the

effectiveness of direct sales organization, representatives, distributors and resellers. Assessing

the performance of the sales channels, recommending alternative means of reaching

customers and developing the capabilities of the sales organization are important aspects of

many of our assignments. Exploiting the latest electronic and non-electronic means of

reaching customers directly is an increasingly important part of our work in developing

distribution channel effectiveness.

This study also helps to find out the market image of the products in comparison

to its competitors and also helps to analyse the brand perception and brand awareness of the

particular product.

1.4 SCOPE OF STUDY:

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The study will help the organization to know the retailers satisfaction towards

Vettooran Natura products and to now the effectiveness of distribution channel in Thrissur

district.

The scope of any study can be defined in terms of the area and the sample size which

will be reviewed for satisfying the objective of the subject matter. The study is in Thrissur

district, and around 100 retailers are targeted

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1.5OBJECTIVES OF STUDY:

PRIMARY OBJECTIVES:

To find the effectiveness of the distributors in promoting Vettooran Natura.

SECONDARY OBJECTIVES:

1) To find out the market image of Vettooran Natura in comparison to its competitors in

Thrissur district.

2) To find out the area of improvement for Vettooran Natura.

3) To analyze the brand perception and brand awareness of Vettooran Natura.

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1.6 RESEARCH METHODOLOGY:

The systematic and scientific way of studying a problem is the core part of research. It

is systematic efforts to gain more knowledge. It is a care full investigation or enquiry

especially through research for new facts and in many branch of knowledge. A well set idea

with a scientific foundation is necessary for the polished functions of any organization.

The scientific methods of understanding a problem and analyzing it with the valuable

information collected needs the knowledge about the systematic way in which a research is

conducted. It is pursuit of truth with the help of study, observation, comparison, and

experiments. It consists of enunciating problem, collection of data, analyzing the facts,

drawing conclusion

1.6.1 UNIVERSE OF STUDY

The population of study is in Thrissur district, and the total size is 100 samples.

1.6.2 RESEARCH DESIGN:

The design may be specific presentation of the various steps in the process of

research. Descriptive design was taken for the study.

Sampling Method : The research is done by sampling mainly by convenience sampling

by taking sample proportional to the population.

Sample Size : 100 were considered as the sample size

1.6.3 DATA COLLECTION INSTRUMENTS:

Primary source of data:

The primary source of data is the questionnaires filled by the Retailers.

Secondary source of data

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The secondary source of data collection is from previous project works done in organization,

journals, paper reports etc.

1.6.4 DATA ANALYSIS AND INTERPRETATION

Data collected were analyzed, enumerated, tabulated and the results were interpreted based

on the data collected

1.6.5 PRESENTATION OF DATA

Data is presented by using tables and charts.

1.6.6. PEROID OF STUDY

The study period was of 60 days from 23rd May to July 23rd 2011.

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1.8 LIMITATIONS OF STUDY:

1) The study covers only a sample size of 100 retailers in Thrissur district.

2) Since the questionnaire is not open ended detailed reasons behind the final evaluation of

each factor was not understood.

3) Some retailers may have an attitude to remain neutral, this may influence the way they

answer to the queries.

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Chapter 1 Intro(5)

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