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Distribution Channels
12-2
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
12-4
Channel Functions
Information Promotion Contact Matching
Negotiation
Physical Distribution Financing Risk taking
12-5
Manufacturers/products
Agents/brokers
Wholesalers/distributors
Retailers
Retailers
12-6
12-7
Intensive Distribution
Selective Distribution
Exclusive Distribution
12-8
Motivating
Evaluating
12-9
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.
12-10
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.
12-11
12-12
Indirect
Direct + Indirect Total
1
7 8
12.5
87.5 100
METHODS
12-13
Agents
Both (Market Research And agents ) Total
3
3 4
37.5
37.5 100
response in percentage
SOURCES
12-14
Shortage in supply
No. of depota
Percentage
Not at all
Few times Total
2
6 8
25
75 100
supply
12-15
PROMOTIONAL ACTIVITIES
12-16
No of agents 1 1 3 2 1 8
12-17
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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.
12-19
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.