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Transcript of PAMPAPATHI PROJECT
AStudy
On
CHANNELS OF DISTRIBUTIONAT
MUNEER CARS, HOSPETProject report submitted in partial fulfillment of the
requirement for the award of Bachelor Degree in Business Management of Gulbarga University, GULBARGA.
By
T.PAMPAPATHIB.B.M. Final year
(Reg No.0855437)
Under the guidance of
Internal guide External guide
MR.SUMAN.N MS.MOUSEENA
(LECTURE) (HR MANAGER)
Hospet Theosophical societiesKumara G.Sudha Shankar Gouda Memorial
Theosophical college of management,Hampi road, Hospet-583201
MUNEER CARS
2009-2010
DECLARATION
I T.PAMPAPATHI Student of final year B.B.M, THEOSOPHICAL COLLEGE OF MANAGEMENT from Gulbarga University, GULBARGA. I here declare that this A Study on CHANNELS OF DISTRIBUTION AT MUNEER CARS, HOSPET“ is the result of my own project report entitled “efforts in the in-plant training which I have undergone as apart of curriculum leading to the award of Bachelor’s Degree in Business Management [B.B.M] under the noble guidance of MS.MOUSEENA (HR MANAGER).
I also declare that this project is the result of my own efforts and has not been submitted to this university earlier or any other university for the award of any degree or diploma.
I also declare that, I have fulfilled all the provisions of the covenant governing the in-plant training.
Place:- Hospet
Date:-
T.PAMPAPATHI
BBM Final year. 0855437
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 2
MUNEER CARS
ACKNOWLEDGEMENTI am very glad to present this project report on “A Study on CHANNELS OF
DISTRIBUTION AT MUNEER CARS, HOSPET ”
At the outset, I would like to convey my sincere thanks to authorities of MUNEER
CARS, HOSPET, for permitting me to conduct the survey and to complete in-
plant training and write this report.
I take this opportunity to thank MS .MOUSEENA HR MANAGER MUNEER
CARS, HOSPET, and others who directly or indirectly helped me in the
organization and for their valuable suggestion by providing me all required data
for the study.
I wish to express sense of gratitude to our college principal and Library-Staff for
providing me necessary facilities in completion of this project report.
I take great pleasure to thank my parents who inspired me in completing the
project report successfully.
T.PAMPAPATHI
B.B.M FINAL YEAR
0855437
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MUNEER CARS
CONTENTS Page noCHAPTER 1: INTRODUCTION -------------------------------- 05 - 07
1 Introduction to the study2 Objective of study3 Methodology4 Limitations of the study
CHAPTER 2: ORGANISATIONAL SET-UP --------------- 08 - 38
1 Company profile2 Various departments of the company3 Organization chart
CHAPTER 3: THEORETIAL FRAMEWORK ------------- 39 -47
1 Introduction2 Meaning of the CHANNELS OF DISTRIBUTION3 Need for CHANNELS OF DISTRIBUTION4 Importance of CHANNELS OF DISTRIBUTION
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION 48 - 66
1 Analysis and interpretation
CHAPTER 5: FINDINGS AND SUGGESTIONS --------- 67 - 69
BIBLIOGRAPHY ------------------------------------------------ 70
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 4
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CHAPTER:1
INTRODUCTION
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INTRODUCTION
Marketing is the performance of Business activities that directs the flow of
goods and services from Producer to Consumers. Marketing is a total system of
business for a process. Which is continuous and it includes the following.
Knowing the consumer needs and translating them into products
services
Creating the demand for these products and services through
promotion and pricing
Servicing the consumer through planned marketing channels
distribution
Expanding the market when there is competition for it.
Thus the Channels of Distribution form as a vital component of Marketing. As
we see the different types of goods reach the consumers through different
methods or channels of distribution depending upon the particular commodity.
STUDY OBJECTIVE
1. this study and the report is made on Distribution Channels, and it is
presented for the purpose of project and filed distribution channels report
as a part of study to obtain B.B.M. certificate from Gulbarga University.
2. to understand the subject “Distribution Channel”
3. to understand the different Distribution Channels followed Practically
4. Observations and suggestions for future needs.
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METHODOLOGY ADOPTED
The field studyThe study was conducted at Muneer Cars situated in Sankalapur, Bellary Road
Hospet.
Study design The study is descriptive in nature. An attempt has be made in evaluate the performance of the industry.
Sources of Data
Both primary and secondary data has been collected. Primary data is been collected through discussion, interviews with concerned officers in the plant.
Secondary data is been collected through company records, books, magazines etc.
LIMITATION TO STUDY
There are certain limitations to be followed in every research work, the
limitations to this study are
A. The study relies upon the data, which was available in company recodes
and information provided by concerned officers in the industry.
B. The study is made for a period of one month. It is very less time to make a
detailed study of Distribution Channels. But I have done my sincere
attempt to cover it completely.
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 7
MUNEER CARS
CHAPTER:2
COMPANY PROFILE
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Introduction to Automobiles-History
The automobile as we know it was not invented in a single day by a single
inventor. The history of the automobile reflects an evolution that took place
worldwide. It is estimated that over 100,000 patents created the modern
automobile. However, we can point to the many firsts that occurred along the
way. Starting with the first theoretical plans for a motor vehicle that had been
drawn up by both Leonardo da Vinci and Isaac Newton
The first successful self-propelled road vehicle was a steam automobile invented
in 1770 by the French engineer Nicolas Joseph Cugnot. Later Nicolas August
Otto invented a 4 stroke gas motor engine in 1876.This engine operation formed
the basis of the future of the internal combustion engine. In 1855, Gottlieb
Daimler invented a gas engine that allowed for a revolution in car design as it
achieved speeds many more times than previous engine.
In the same year Karl Benz the German mechanical engineer designed and built
the world’s first practical automobile to be powered by an internal combustion
engine based on Otto’s design. It was a three wheeled machine. In 1886, Daimler
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MUNEER CARS
took a stage coach and adapted it to hold his engine, there by designed the
worlds first four-wheeled automobile.
Some time later Daimler & Benz merged together to form a company Daimler Benz.
Cugnot’s steam wagon, 1870, Vienna, AustriaThe second (1771) version world’s gasoline-run vehicle #1 The Firs Marcus Car
Second Marcus Car of 1888 T-model Ford car parked outside Geelong Library At its launch
in Australia in 1915
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First gasoline powered car Henry Ford first Quadra cycle car in America,The car was built byCharles and Frank Duryea
The Globe
With the increasing competitiveness of the auto market and rising costs many companies have joined the forces, been brought out or many new been created. The Estimated global passenger car production in 2005 was 66 million units.
[Source OICA (Organisation Internationale des Constructeurs D’automobiles]
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Major Manufacturers
General Motors Toyota Ford Honda
Volkswagen Chevrolet Skoda Hyundai
Suzuki Tata Fiat Mitsubishi
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 12
Industry Performance
Source: SIAM April, 2007
948574
885212
755708
593578
570863
1159499More than 100 % growth in 6 years
MUNEER CARS
India-Then & Now
Car Segmentation
With the expansion of Indian Automotive Market the car models have been
grouped into following segment based on price & size of cars and are accordingly
referred to industry communications
Based on the international way of grouping the cars in segments as per length
SIAM (Society of Indian Automotive Manufacturers)
A1 (Mini-Upto 3400mm) : Maruti 800
A2 (Compact-3401 to 4000mm) : Zen, Wagon R, Alto, Santro, Sail, A Star, I10, I20, Spark, Fabia, Swift
A3 (Mid-Size-4001to4500mm) : Swift Dzire, Accent, Aveo, Fiesta, Ambassador, SX4, Indigo, Ikon, Citi, Lancer, Optra
A4 (Executive-4501 to 4700mm) : Octavia, Contessa, Elantra, Mercedes,
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Corolla Civic
A5 (Premium-4701 to 5000mm) : Sonata, Mondeo, Accord, Camry, E-Class
A6 (Luxury-5001m & Above) : S-Class
C (Van Type) : Omni, Versa, Winger
B2 (Passenger Carrier) : Gypsy, Sumo, Safari
Car Companies in India Maruti
Fiat
GM (Opel,Chevrolet)
Ford
Hindustan Motors, Mitsubishi
Honda
Hyundai
Bajaj Tempo
Mahindra
Maini Elect
Mercedes Benz
Nissan
Skoda
Tata
Toyota etc
Top Three Manufacturers in Sales Maruti Suzuki
Tata Motors
Hyundai
Maruti Suzuki is a number two car maker. It makes more cars than the entire
competition put together!
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1999-2000
44
45
11 0
A1 A2 A3
2006-2007
6.8
65
17.3
7.2
A1 A2 A3 A4,A5,A6 C
44.4 % Growth
57.3 % Growth
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Growth & Growth Factors:
GrowthThe Indian auto industry has been growing year after year at a very rapid
pace.The growth rate is not just large from India’s perspective but is one of the
largest globally. Many sources put Indian growth rate as second to only China.
Growth Factors Steady rise in income levels
Change in life style
Declining loan interest rates
Low tax & duties contributing to more affordable vehicle
US based consultancy, Keystone predicts that India will become World’s third
largest automobile market 2030.Overall size expected to exceed 20 million, with
compounded annual growth rate of over 12%.
MARKET TRENDS:
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An Overview of Maruti Suzuki India Limited
Maruti Udyog Limited (MUL), INDIA’S finest & Asia’s largest automobile industry was established in 1981 by
an act of parliament. MUL, the first automobile company in the world to be
honored with an ISO 9000:2000 certificate, is a subsidiary of Suzuki Motor
Corp(holds a 54% equity stake).The Govt of India remains a significant equity
stakeholder of 10%.With its early mover advantage in Indian market; Maruti
retains a dominant Market share despite increasing competition.
More than half the number of cars sold in India wears a Maruti Suzuki badge.
We are a subsidiary of Suzuki Motor Corporation Japan. We offer full range of
cars- from entry level Maruti 800 & Alto to stylish hatchback A star, Swift, Wagon
R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara.Since
inception, we have produced and sold over 7.5 million vehicles in India and
exported over 500,000 units to Europe and other countries.
Our turnover for the fiscal 2007-08 stood at Rs. 178603 Million, Yen 449 Billion, $
4.512 Billion * & Profit After Tax at Rs. 17308 Million. We were born as a
government company, with Suzuki as a minor partner, to make a people's car for
middle class India. Over the years, our product range has widened, ownership
has changed hands and the customer has evolved. What remains unchanged,
then and now, is our mission to motorise India. Our parent company, Suzuki
Motor Corporation, has been a global leader in mini and compact cars for three
decades. Suzuki's technical superiority lies in its ability to pack power and
performance into a compact, lightweight engine that is clean and fuel efficient.
The same characteristics make our cars extremely relevant to Indian customers
and Indian conditions. Product quality, safety and cost consciousness are
embedded into our manufacturing process, which we have inherited from our
parent company.
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Right from inception, Maruti brought to India, a very simple yet powerful
Japanese philosophy 'smaller, fewer, lighter, shorter and neater' From the
Japanese work culture we imbibed simple practices like an open office, a
common uniform and common canteen for everyone from the Managing Director
to the workman, daily morning exercise, and quality circle teams. To reach our
customers, we have built a strong sales network of 600 outlets spread over 393
towns and cities.
We provide maintenance support to customers through 2628 workshops spread
over 1200 towns and cities. In these competitive times the challenge is to keep
inventing newer ways of doing things to keep the customers in your fold. Over the
last few years, the company strengthened the existing practices and
experimented with many new initiatives by way of kaizens (continuous
improvements) to delight its customers. These initiatives ranged from product
design and quality to network expansion, and included new service programs to
meet unsaid needs of customers.
The company has retained its competitive edge by offering high quality products.
In the field, the products are supported by rapidly expanding networks. The
company has diverse networks for new cars, spares, service, pre owned cars and
so on, and all of them were in expansion mode last year to enable the company
get closer to the customer.
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Maruti Suzuki rolls out 1 car every 30 secThe company takes great pride in sharing that customers have rated Maruti
Suzuki first once again in Customer Satisfaction Survey conducted by independent body, J.D.Power Asia Pacific. It is 9th time in a row. The award
mirrors the company's commitment towards "Customer Obsession".
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Key Initiatives Car pickup & delivery facility for women car owners
Quote Unquote: "The study finds that vehicle pickup and delivery before and after
service has a strong impact on customer satisfaction. In particular, customers
who say that their vehicle was picked up from their doorstep before service and
delivered to the same point after service are notably more delighted with their
after-sales service experience, compared with customers who do not receive this
service...."
Setting up "Express Service Bays" & "2 - Technician Bays"As the name suggests the company set out to delight its customers by offering
them faster car service by introducing new concepts such as Express Service
Bays & 2- Technicians Bays. These are done for customers who are hard
pressed for time. Both the initiatives undertaken in this direction have helped
improve customer interface and also helped increase the productivity and
capacity of existing workshops.
Mega CampsThe company aggressively conducts 'Mega Camps' throughout the country round
the year. Activities undertaken during a mega camp include complimentary car
wash, AC & Pollution check up, oil and fuel top ups, wheel alignments etc. Apart
from mega camps workshop camps like A/C checkup camps, PUC and general
check-up camps, Locality camps , Pre monsoon camps etc are also regularly
conducted as part of customer connect initiatives.
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Service at your Door Step through Maruti Mobile SupportAnother unique initiative is the door step service facility through Maruti Mobile
Support.Maruti Mobile Support is a first of it's kind initiative and is expected not
only to help the company reach out customers in metro cities but also as a mean
to reach semi urban /rural areas where setting up of new workshop may not be
viable
MARUTI NEW INITIATIVES
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Vision & Core Values
Creating Customer Delight & shareholder’s wealth A Pride Of India
Visions of any company are those values on which the company works. As
MUL is started be governmental initiatives it tends to be more consumer oriented
and hence cost effective, but on the other hand Suzuki’s participation ensures not
only profit, but of the need of maximum profit. The only way for this Nora’s
dilemma of selecting principals for company’s working vision, was to maximize
profit and reducing cost by maximizing output and hence MUL declared its vision
as “The leader in the Indian Automobile Industry, Creating Customer Delight and
Shareholder’s Wealth, Eventually become a pride Of India”
Customer delight is making sure that performance, after sales service and
customer support are best and beyond expectation. Shareholder’s wealth is the
prime concern of running business smoothly. MUL knows this and understands
“Customer Is King”, he can change the fortune of any company, hence goes
company’s brand line “COUNT ON US”
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Milestones & Amazing Facts
Formed in October 1982 with the signing of a joint venture between the
Government of India and Suzuki Motor Corporation.
Launched India's first ever people's car, which is today India's largest
selling car !
3 production plants at Gurgaon Haryana & 1 in Manesar.
On average a car rolls out every 30 seconds.
More than 1 in every 2 cars sold in India today is a Maruti Suzuki.
March 1994 - First Indian company to produce over one million vehicles.
April 2003 - Produced 4 millionth vehicle.
April 2005 – Produced 5 millionth vehicle
The Change Of company name from Maruti udyog Limited to Maruti
Suzuki India Limited
2007 – JD Power Survey awarded for 7th year.
2008 – Alto crosses 1 million Cars
2008 – Swift crosses 2,50,000 sales unit
2008 – Car Manufacturer Of the Year
Launch of Worlds strategic model A Star
Special Commendation to the Indian Auto Industry – A tribute to MSIL’S
Silver Jubilee
MSIL adopts voluntary fuel disclosure
Setting Standards
The first automobile company in the world to get A.V. Belgium ISO 9001:2000 Certification for quality standards & procedures
Nov 1999 The first passenger car company in India to get certified for Environment Management System (EMS) as per ISO 14001:1996
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Among the countries 5 most respected companies and the countries most respected automobile company
The only car company in the world to be market share leader and the leader in customer satisfaction in service, in the JD Power CSI Survey
More then just car manufacturers a responsible corporate citizen constantly taking initiatives in areas of Environment, Social welfare, Traffic Safety, Education, Children welfare.
Sales & Market Share:
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 23
Some Milestones - Pride Pointers
(As on June, 2007)
Network LeadershipDealer Sales Outlets
224
Dealer Extension Counter 120
96
223
592
1841
1175
397
MUNEER CARS
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MARUTI SUZUKI SPREAD OVER GLOBE
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MARUTI SUZUKI - Product Range
a) Omini b) Wagnor
- Fit all - For a smarter race
Mrp : 2.80lacs Mrp : 5.13lacs Length : 3370mm Length : 3520mmWidth : 1410mm Width : 1490mmHeight : 1640mm Height : 1690mmFuel : 36ltrs Fuel : 35ltrsSeat : 5-8seats Seat : 5seats
c) Alto d) Versa
-Let’s go - The joy travelling together
Mrp : 3.27lacs Mrp : 5.60lacsLength : 3495mm Length : 3675mmWidth : 1475mm Width : 1475mmHeight : 1460mm Height : 1905mmFuel : 30ltrs Fuel : 40ltrsSeat : 5seats Seat : 8seats
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e) A-star f) Swift
- Where is your fire - You’re the fuel
Mrp : 4.81lacs Mrp : 6.15lacsLength : 3500mm Length : 3760mmWidth : 1600mm Width : 1690mmHeight : 1490mm Height : 1530mmFuel : 35ltrs Fuel : 45ltrsSeat : 5seats Seat : 5seats
g) Swift Desire h) Zen Estilo
-The heart car - Take a fresh view of life
Mrp : 7.84lacs Mrp : 4.49lacsLength : 4160mm Length : 3495mmWidth : 1690mm Width : 1475mmHeight : 1530mm Height : 1595mmFuel : 43ltrs Fuel : 35ltrsSeat : 5seats Seat : 5seats
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i) Maruti 800 J) Maruti Sx4
- Change your life - Men are Back
Mrp : 2.48lacs Mrp : 8.97lacsLength : 3335mm Length : 4490mmWidth : 1440mm Width : 1735mmHeight : 1404mm Height : 1570mmFuel : 28ltrs Fuel : 50ltrsSeat : 4seats Seat : 5seats
k) Grand vitra
-Play it your way
Mrp : 18lacsLength : 4470mmWidth : 1810mmHeight : 1695mmFuel : 66ltrsSeat : 5seats
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MUNEER CARS
Introduction to Muneer Cars-Profile
“MUNEER CARS” (A Unit of M/s. Muneer Enterprises Pvt. Ltd,) was
formed in the year 2006-07. It is dealership of cars of M/s. Maruti Suzuki India Limited” for Bellary, Koppal and Raichur Districts. It also provides after sales-
service for its esteemed customers. M/s. Muneer Cars is having its Pre Owned Cars Division, which has activated from Aug 07’. The dealership has an outlet in
Raichur which was activated in the month of July 08’.
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MUNEER CARS
The dealership has bagged the best infrastructure award for whole of south of
India by Maruti Suzuki India Limited declared in Athens, Greece during the
Annual meeting.
The dealership provides well furnished clean & healthy infrastructure for its
employees to work with comforts and for their esteemed customers for their easy
& comforts. The dealership is located in the outskirts of Hospet. It also has a
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stock yard for their newly as well pre owned purchased vehicle. It also provides
huge parking place for serviced vehicles too.
The dealership also provides facility for their customers for Pooja & for other
related activities. A Separate place in the showroom is allotted for that. Following
is the performance snap shot of Muneer Cars in Sales.
Brief Profile of Muneer Group
We are pleased to take this opportunity to throw light on the state of affairs
carried on by our different firms in different fields since 1960.
To start with we have initiated our business by entering into in
manufacturing of tractors drawn agricultural implements such as 2 furrow MB
ploughs, Tillers, Blade, Harrow Cum Levelers, Paddy disc, Harrows etc.,
especially our M.B.Ploughs hit the market with a bang in the whole state of
Karnataka and reached the horizons of Andhra Pradesh and Maharashtra. Our
firms name has become synonymous with quality HOSPET PLOUGH. We have
gained the confidence of our valued farmers. This trade is being carried on in two
different names namely “M/s. GRAND LATHE & WELDING WORKS” AND “M/S. GREEN AGRICULTURAL IMPLEMENTS MANUFACURERS”.
The financials status is as follows.
A]. M/s. Grand Lathe & Welding Works.
B]. M/s. Green Agricultural Implements Manufactures
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FINANCIAL YEAR
TURNOVER (in Lakhs)
2002 – 03 55.542003 – 04 42.712004 – 05 68.762005 – 06 73.692006 – 07 97.252007 – 08 102.00
MUNEER CARS
FINANCIAL YEAR TURNOVER (in Lakhs)
2003 – 04 39.002004 – 05 45.782005 – 06 58.602006 – 07 90.872007 – 08 98.00
In the year 1979 we have entered into an Iron Ore Mining business by trade name “M/s. MUNEER ENTERPRISES” being our major flagship. In the first
decade it carried on a lot of development works systematically and successfully
to cape up the market as it was at its nadir. Now “M/s. Muneer Enterprises having a STAR TRADING HOUSE STATUS” has reached its culmination point
and it one of the Major Exporters of Iron Ore to China.
The financials status is as follows
C]. M/s. Muneer Enterprises.
FINANCIAL
YEAR
TURNOVER (in
Lakhs)
2002 – 03 55.622003 – 04 2,550.002004 – 05 5,064.752005 – 06 11,406.002006 – 07 11,564.002007 – 08 13,500.00
It is proud to say that Muneer Enterprises has bagged special award for
outstanding exports from CAPEXIL for the consequent two years 2005-06 and
2006-07. We also have been selected as the best Exporters by the Department
of Ports and Inland Water Transport, Karwar for the consequent two year 2005-
06, 2006-07 and 2007-08. We are optimistic about quality and quantity in the
uptrend in future.
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MUNEER CARS
In the year 2002 the group has expanded further in the automobiles field
and formed “M/s. MUNEER MOTORS” started dealing in world famous tractors
by name “JOHN DEERE TRACTORS” and “Balkar Harvesters”.
Year Tractor’s Sales Harvester’s Sales
2002-03 41 -
2003-04 55 -
2004-05 94 -
2005-06 223 25
2006-07 159 37
2007-08 159 38
Total 731 100
This business is on the ascending trend and also this firm has taken over the
following in the recent years.
C & F work of “M/s. J.K. TYRES”, which have proved successful business
results.
Dealers for “ASIA MOTORSWORKS LTD.” FOR SPARES, SERVICE AND SALES OF HEAVY COMMERCIAL VEHICLES, ASIA MOTORS WORKS ARE the first Indian 49 toner vehicle manufacturer. And has
come up with more than 10 Models for different applications. Total Sales
of AMW Tippers is 165 Nos. as on date.
M/s. Muneer Motors is directly associated with “M/s. VOLTAS LIMITED” (A TATA Enterprises) in Mining and Construction Equipment Division for
Spares, Service Sales &Marketing of Hyundai make Crawler
Excavators, Wheel Excavators & Wheel Loaders. Total sales of Hyundai
Excavators is 19 Nos. as on date.
The financials status is as follows.
D]. M/s. Muneer Motors
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MUNEER CARS
FINANCIAL YEAR TURNOVER (in Lakhs)
2002 – 03 94.562003 – 04 268.372004 – 05 440.602005 – 06 920.402006 – 07 888.002007 – 08 1020.00
For the last year we have been awarded with “Best Dealership Award for Hundred Club” from John Deere Equipments (p) Ltd., for the sale of highest
number of tractors in Karnataka. On 30th September 2005 we have floated a new
company by name “M/s. Muneer Enterprises Pvt. Ltd.”
In the year 2006 – 07 “MUNEER CARS” (A Unit of M/s. Muneer Enterprises Pvt.
Ltd,) is formed being got the dealership of cars of M/s. Maruti Suzuki India Limited” for Bellary, Koppal and Raichur Districts. We have bagged the best
infrastructure award for whole of south of India by Maruti Suzuki India Limited
declared in Athens, Greece during the Annual meeting. Within a span of six
months, we could manage to sell about 335 vehicles though it is in infancy period
which is an achievement we have got the state of the Art service division to cater
to the needs of our valued customers.
M/s. Muneer Cars is having its Pre Owned Cars Division, which has got
activated from 15’Aug, 07’ which is doing fairly well. From the beginning of
Showroom we have sold out 906 Nos. of cars as on date.
The Group has proposed to set up the following projects under M/s. Muneer
Enterprises Pvt. Ltd.
Sponge Iron plant
Pelletisation Plant
Mineral Processing Plant
Power Plant etc.
MUNEER ASSOCIATES:
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MUNEER CARS
We are authorized distributors of Hindustan UniLiver Limited for Bellary, Koppal &
Raichur districts. We have started this firm on February 2007 and it is going well.
MUNEER CONSTRUCTION EQUIPMENTS : It is a unit of Muneer Enterprises Pvt. Ltd.,. and authorized dealers for Escorts
Construction Equipment Pvt. Limited. To provide sales and services for Cranes,
Articulated Boom Cranes, Slew Cranes, Vibratory Compactors, Forklift, Tandem
Vibratory Compactors, Crawler Cranes, Tower Cranes and Loaders.
TOTAL FINA ELF INDIA LTD:It is a Unit of Muneer Enterprises Pvt. Ltd., and authorized distributor of Total
Fina Elf India Ltd. for North Karnataka. We have started this firm on February
2008 and it is going well.
VISION & MISSIONVisions of any company are those values on which the company works.
The Core values of Muneer Cars are Integrity, Passion to Deliver Excellence, Spirit of Entrepreneurship, Innovation & Creativity. We must always conduct
our business with fairness, honesty & transparency. So that we can at all time
stand public Scrutiny. We will never undermine the heritage of trust that comes
with the Muneer Brand. All our activities must be driven by a passion to deliver
excellence. We must strive uncompromisingly to achieve the highest standards in
our daily work and in the quality of goods & service we offer. We would
encourage innovative ideas for individuals and organizational development. This
thinking would be fostered, encouraged 7 recognized for enhancing business. We
would take delight in stretching our goals and each of us would have scene of
ownership and responsibility for all our business dealings.
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MUNEER CARS
VISION“TO BECOME THE SINGLE DEALER WITH LARGEST CHAIN OF SALES &
SERVICE NETWORK SCIEZING OPPORTUNITIES TO ACHIEVE
AGGRESSIVE & PROFITABLE GROWTH WITH THE BEST DEALER STATUS
& EMPLOYEE RETENTION.”
MISSION“MARKET SHARE, NEW MARKET PENETRSTION, CUSTOMER DELIGHT,
GROWTH IN SALES SUPPORT, SERVICE UNLIMITED”
(Source: Personal Interview with Mr Syed Ehtesham-COO)
ORGANIZATION CHARTMr Syed Nazimuddin
Chief Operating Officer (COO)
Mr Syed Ehteshamuddin
Deputy General manager (DGM)
Mr Sreenivas Reddy K
Human Resource Customer Care Accessories New Car Sales True Value Back Office Accounts
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 36
MUNEER CARS
Human Resource Manager
Customer Care Manager
Accessories Manager
New Car Sales Manager
True Value Manager
Back End Support Team
Accounts Manager
HRE's CCE's Advisor's Team Leader Team Leader EDP,File Maintainance Accountants
DSE'sDSE,RF Co-Ordinator,
EDP,Evaluators
SALESTotal Sales (FEB & MAR 07 ) - 69
2006-07
0
5
10
15
20
25
30
2006-07
2006-07 9 12 24 6 7 10 0 1 0 0 0
M800 Omni Alto Estilo Wagon R Swift A Star Estee
m Dzire SX4 Grand Vitara
Total Sales (2007-08 ) - 679
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 37
MUNEER CARS
2007-08
0
50
100
150
200
250
2007-08
2007-08 71 147 208 37 58 135 0 2 4 17 0
M800
Omni
Alto Estilo
Wagon
Swift
A Star
Esteem
Dzire
SX4 Grand
Total Sales (2008-JAN 09 ) - 687
2008 - Jan 09
0
50
100
150
200
2008 - Jan 09
2008 - Jan 09 55 159 151 23 66 164 13 0 51 4 1
M800
Omn
Alto
Estilo
Wag
Swift
A St
Estee
Dzire
SX4
Gran
INITIATIVES
Mega Sales & True Value CampsThe company aggressively conducts 'Mega Sales & True Value Camps'
throughout the authorized areas round the year. Activities undertaken during a
mega camp include Test Drives for New & Old Cars, Comparison b/w Maruti
Suzuki & Competitors, Test drives are also given at the corporate sectors to grab
the highly potential customers as test drive is the major activity in sales process.
Free Check up Camps for Maruti Suzuki Customers are also regularly conducted
as part of customer connect initiatives.
Muneer Cars Limited EditionsTo bridge the gap between the variants & to provide fully loaded top end versions
to their esteemed customers Muneer Cars initiated towards MC Editions using
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 38
MUNEER CARS
aruti’s Genuine Accessories. Muneer Cars Stands 1st all over India in the sale of
MGA, It has set a benchmark by selling approx an avg around Rs 10,000/-
accessories per car every month.
Employees RetentionMuneer Cars also takes initiatives to retain their employees whom they feel as
their strengths by providing them healthy atmosphere to work along with pick up
& drop facility for Women workers with attractive pay structure & incentives for
every individual every month along with annual bonus. They have also set up
canteen for their employees and customers.
Car pickup & delivery facility for ServiceQuote Unquote: "The study finds that vehicle pickup and delivery before and after
service has a strong impact on customer satisfaction. In particular, customers
who say that their vehicle was picked up from their doorstep before service and
delivered to the same point after service are notably more delighted with their
after-sales service experience, compared with customers who do not receive this
service...."
CHAPTER:3CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 39
MUNEER CARS
THEORETICAL FRAME WORK
MEANING AND DEFINITION
The term” Channel” is derived from the French word ‘Canal’ which means
artificial waterway for transportation or irrigation. So, “Channels of Distribution
refers to the path way, path or route taken by goods as they move or flow from
the point of production to the point of consumption. Shortly saying, it is the
pipeline for goods in their flow from Producer or Manufactures to final consumers
of Industrial users.
Various marketing experts have given several definitions, Philip Kotler who is
rightly called as the father of Marketing defines Marketing Channels “as a set of
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 40
MUNEER CARS
interdependent organizations involved in the process of making a product or
service available for use or consumption.”
According to professor W. Stanton ‘”Channels of Distribution is the route taken
by the title to the goods as they move from the Producer to the ultimate
Consumer or Industrial user”.
IMPORTANCE AND FUNCTIONS OF CHANNELS OF DISTRIBUTION
Channels of distribution play a very significant role in Marketing of goods.
Through proper channel effective reach by their intermediaries play an important
role in promoting the brand.
Distributors by making the products available to the target population, in the
most cost effective way at the right time & at the right place in a right way help
the company gain their market share.
For Market penetration for niche products and some of the goods Channels of
Distribution is important for brand building, increasing sales and to gain more
profit by proper coverage of market segment that company’s product is
positioned.
For balancing demand and supply the channels of distribution plays an
important role.
THESE CHANNELS PERFORM THE FOLLOWING MARKETING FUNCTIONS IN THE PROCESS OF DISTRIBUTION
i. The searching out of buyers and sellers (Contracting)
ii. Matching goods with the requirement of market (Merchandising)
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MUNEER CARS
iii. Offering products in the form of assortments or packages of items
usable and accepted by the consumers or users.
iv. Persuading and influencing the prospective buyers to favor a certain
products and its makers (Personal selling/Sales promotion)
v. Looking after all physical distribution.
vi. Persuading and influencing the prospective buyers to favor a certain
products and its maker.
vii. Offering pre-sale and after sale service to the customers
viii. Providing feedback information, marketing intelligence and sales
forecasting services for their regions to their suppliers.
ix. Offering credit to retailers and customers.
x. Risk bearing with reference to the stock holding / transport.
COMPONENTS OF CHANNELS
1. All kinds of merchant middlemen such as wholesalers and retailers.
2. All kinds of agent middlemen such as commission agents. Brokers,.
Housekeepers and so on
3. All other facilitating agencies such as carriers, advertising agencies and
son on.
CHANNELS OF DISTRIBUTION
There are two types of channels of distribution they are as follows
1) Consumer Marketing Channel
2) Industrial Marketing Channel.
Consumer Marketing Channel: there are five channels in the consumer-marketing channel
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 42
MUNEER CARS
Manufacturer-Consumer (Direct sale)
It consists of manufacturer selling directly to the final consumer. The direct
selling channels are Door selling, Mail Order Telemarketing. TV selling, Retail
shops of manufacturer.
Manufacturer- Retailer- Consumer
This channel is used when buyers are large retailers. Ex: Departmental store,
Discount stores, Discount house, Chain stores, Super market, Co-Operative
stores.
Manufacturer- Wholesaler- Retailer- Consumer
In this channel manufacturer uses the two intermediaries i.e. Wholesaler-
Retailer for distribution of his products to consumer.
Manufacturer- Agent- Retailer- Consumer
In this channel producer uses the service of an agent middlemen such as a
sole selling agent.
Manufacturer- Wholesaler- Consumer
In this channel producer uses the wholesaler as a middlemen for the purpose
of the distribution of the product.
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 43
MANUFACTURER OR PRODUCER
Retailer
WholesalerAgent
Wholesaler
MUNEER CARS
INDUSTRIAL MARKETING CHANNEL:
industrial goods manufactures can use its sales force to sell directly to industrial
consumers (direct selling),
Manufacturer of industrial goods can sell to industrial distributors who sell to the
industrial customers.
Manufacturer can sell through his representatives.
He can sell through his own sales branches directly to the industrial customers.
He can sell indirectly to industrial customers through industrial distributors.
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 44
FINAL CONSUMER OR USER
Retailer Wholesaler
Retailer
MANUFACTURER
Manufacturer representative.
Manufacturer sales branch.
MUNEER CARS
CHANNEL CHOICE :
The problem of selecting the most suitable channel of distribution for the
product is complex. The most fundamental factor for channel choice and channel
management is economic criteria viz. Cost of profit criteria. The organization is
interested in cost minimization in distribution and assurance of reasonable profit
margin.
SELECTION OF CHANNELS OF DISTRIBUTION :
There is no single best channel suitable for all types of manufactures or
producers for all types of products. Under all circumstances. So the selection of
the channels of distribution is the most difficult problem faced by manufactures or
producers. The various factors that influence the selection of channel of
distribution by producer are:
PRODUCT CHARACTERISTICS: product characteristics refers to the
various characteristics of a product, such as its class (whether it is
consumer product or industrial product), its nature (whether it is durable or
perishable product), its bulk and size, its use, its price, the rapidity of
fashion change, the frequency of its purchase, etc. for example,
perishable goods must be placed in the hands of consumers as quickly as
possible, so they require direct selling
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 45
INDUSTRIAL USER
INDUSTRIAL DISTRIBUTORS
Manufacturer sales branch.
MUNEER CARS
CUSTOMER CHARACTERISTICS: Customer characteristics refer to the
number of potential buyers, their geographic description, their frequency
and regularity of purchase, their average purchases, there buying motives
etc.
MIDDLEMEN CHARACTERISTICS: it refers to the number of middlemen
available for distributing the products, their willingness to undertake the
work of distribution, their sales potentiality, their behavior etc.
SUPPLY CHARACTERISTICS: it refers to the number of producers or
suppliers, their concentration or dispersion, the quantum of their suppliers
etc.,
DISTRIBUTION POLICIES OF PRODUCERS: A concern may adopt the
policy or practice of intensive distribution or maximum distribution (i.e.
distribution of products through as many channels as possible) or selective
distribution (i.e. through selected number of intermediaries) or limited
agency distribution (through few agencies) or exclusive agency distribution
(thorough single agency).
CHANNELS OF RIVALS: while selecting the channels of distribution, the
effectiveness of the channels of distribution adopted of rivals should be
studied. If rivals adopt effective channels, you are preferable to adopt
some channels of distribution.
COMPANY CHARACTERISTICS: it refers to the various characteristics of
manufacturing company, such as its size, financial position, and product
mix, for example, a big concern with strong financial position engages in
direct selling.
ECONOMIC CONDITIONS AND LAWS OF COUNTRY: economic
conditions influence the selection of channels of distribution for instance;
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 46
MUNEER CARS
when economic conditions are depressed shorter channels are preferable.
Similarly, the laws of country also influence the selection of channels of
distribution. For example, when there is multi point tax on sales, naturally
direct selling to consumers or through middlemen is quite common.
COST OF MARKETING CHANNELS: the relative costs of various
channels of distribution also influence the selection of channels of
distribution. Generally producers choose the channels, which ensure
efficient distribution and secure the desired sales volume at the lowest
possible costs.
MIDDLEMEN IN DISTRIBUTION : There are two types of middlemen in distribution
Merchant Middlemen
Agent Middlemen
Merchant middlemen buy and sell goods on their own account and at their
own risk of loss, example wholesaler and retailer.
Where as Agent Middlemen who do not take ownership title to goods but
actively negotiate the transfer of ownership right from the seller buyer.
MARKET COVERAGE : Once the company decides the general channels to be used, it has to
decide all the number of middlemen in each channel, i.e. intensity of channels of
distribution. There are three alternatives among the company must choose the
best alternative. The decision made after careful analysis of product, consumers,
dealers, company objective and policies, and the conflict within the channels and
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 47
MUNEER CARS
my other relevant factors. The company resolves channels and brings the
product in the market.
The three alternatives are as follows:
EXTENSIVE DISTRIBUTION: we have maximum number of
retail outlets for mass distribution convenience goods. As consumer demand
immediate satisfaction and that too at the most convenient retail shops.
Extensive or broadcast distribution is essential when the price is low, buying is
frequent and brand switching is common phenomenon Extensive
distribution secures rising sales value, wider consumer recognition and
considerable impulse purchasing. But it creates problem of motivation and
control and it may generate unprofitable sale due to higher marketing costs.
SELECTIVE OR LIMITED DISTRIBUTIONS: when special
services are needed, e.g. TV sets as a right prestige image is to be created, we
have selective distribution. The number of outlets at each level of distribution is
limited in given geographical area. When we have limited number of middlemen.
They can spend more on sales promotion and offer maximum co-operation in the
company’s promotion campaign. If the product has long life and consumer brand
presences can be established, selective distribution will be more profitable.
EXCLUSIVE DISTRIBUTION: if the amount of product sere accepted by
final buyers is considerable, exclusive distribution is preferable. Here, we have
one retailer and wholesaler for a given market not only brand preferences but
also brand insistence and consumers refuse to accept substitutes, selective or
even exclusive distribution is feasible.
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MUNEER CARS
CHAPTER 4:
DATA ANALYSIS AND INTERPRETATION
TABLE 1
Table showing markets response towards Muneer cars products.
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MUNEER CARS
ANALYSIS
From the above table it is seen that the maximum number of respondents, 30, have a good opinion regarding the markets demand over muneer cars product. While 10 respondents believe that the market response is excellent while other 10 believe that market response is satisfactory.
CHART 1
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 50
Particulars Number or Respondents
Percentages
Excellent 10 20%
Good 30 60%
Satisfactory 10 20%
Poor - -
Very Poor - -
Total 50 100%
MUNEER CARS
INFERENCE
Understanding Markets response for a product is very crucial task. Market response makes us understand loopholes of product. Hence it is PRODUCT MARKSHEET.
From the above chart it is inferred that most of the respondents believe that muneer cars have very good market response and hence its demand is found to be ever green.
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 51
05
101520253035
10
30
10
0 0
Chart depicting markets response towards muneer car products.
Excellent Good
Satisfactory Poor
Very poor
SATISFACTION LEVEL
No. o
f res
pond
ents
MUNEER CARS
TABLE 2
Table showing location of sales with regard to distributors of Muneer cars .
Particulars No. of Respondents Percentage
Urban 22 54%
Rural 18 46%
Total 50 100%
ANALYSIS
From the above table maximum number of respondents,
44 % have their sales location in urban market while about 36 % of rests
have their sales in rural market. Urban markets include localities with
Population above 50,000. While rural markets assumed below Population of
50.000
CHART 2
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MUNEER CARS
INFERENCE
Segmenting the various locations where sales occur may determine the
need to improve upon reaching potential markets. Segmentation helps
systematic approach towards strategic decision making in marketing.
From the above chart it infers that Muneer car has its strong base in urban
market while the scope in rural market is yet to be improved. However the
present status is satisfactory.
From the above chart it infers that maximum market share is grabbed by
muneer and no competitor stands near by with a difference of around 20 %.
muneer cars thus have large scope with remaining 66 % of remaining
market.
Table 3
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 53
44%
36%
Chart depicting location of sales with regard to distributors of muneer cars.
Urban Rural
MUNEER CARS
The time period of association of distributors With Muneer cars.
Particulars No. of Respondents Percentage
Below 1 year 21 42%
1-2 years 18 36%
2-5 years 7 14%
More than 5 years 4 8%
Total 50 100%
ANALYSIS
From the above table maximum number of respondents, 21 were associated with Muneer cars below the time period of 1 year. While 18 respondents were associated from 1-2 years. But very less number of distributors were associated with muneer from 2-5 years and more than 5 years i.e. 7 and 4 respondents respectively.
CHART 3
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MUNEER CARS
INFERENCE
The number of distributors increases when they find a Brand working extremely well. Thus this symptom should be analyzed to know growth parameter.
The chart shows that there is rapid increase in the number of distributors from past 5 years. This shows that brand is very well accepted in market and more distributors are interested in its association.
TABLE 4
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 55
Chart depiciting distributors association with time period.
Below 1 year 1-2 years 2-5 years More than 5 years
MUNEER CARS
The table showing various factors which influence sale of Muneer cars from distributor’s premises.
Particulars No. of Respondents Percentage
Brand name 19 38%
Counter 13 26%
Margin 7 14%
all 11 22%
Total 50 100%
ANALYSIS
From the above table maximum number of respondent, 19 believes that
Brand name is the major factor which initializes the movement of goods in
market. While the counter of distributor acting as sales factor stands at 26 %.
Very less number of respondents, 7 believes that Margin is a factor which
influence sale.
CHART 4
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MUNEER CARS
INFERENCE
Determining the factors which influence liquidation of goods play an important role. It identifies the Brand power as well as hurdles faced by the distributors.
From the above chart 38% distributors responded that Muneer Brand is the major influencer while counter and margin are also considered as minor influencers. On other hand 22 % of respondents believe that all the factors together decide Brand movement.
TABLE 5
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 57
38%
26%
14%
22%
Factors which influence liquidation of muneer cars from Distributors premisis.
Brand name Counter Margin all
MUNEER CARS
Table showing various sales promotion Aids and its effectiveness over distributors.
Particulars No. of Respondents Percentage
Free Schemes 16 32%
Discounts 22 44%
Gift articles 8 16%
Coupons 4 8%
Total 50 100%
ANALYSIS
From the above table maximum number of respondents, 22 believe
that Discounts acts as one of the most effective aid. They are very happy to
get discounts than free schemes, Gifts and coupons. While the second place
is taken by free schemes by 16 respondents. Minority believe that gift
articles and coupons also are good promotional aids.
CHART 5
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 58
Free SchemesDiscounts
Gift articlesCoupons
0 5 10 15 20 25
32%44%
16%8%
Effective sales promotion Aids.
No. of Respondents
MUNEER CARS
INFERENCE
Promotional aids by promoters are to be reconstructed by analyzing its effectiveness on consumers.
From the above table distributors infer that discount is the most effective promotional aid which highly satisfies them. While free schemes stand on the second preference with a major number of respondents.
TABLE 6
The table showing the distributors perception about sales .
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 59
Free SchemesDiscounts
Gift articlesCoupons
0 5 10 15 20 25
32%44%
16%8%
Effective sales promotion Aids.
No. of Respondents
MUNEER CARS
Particulars No. of Respondents Percentage
Seasonal sales 29 58%
Geographical sales 21 42%
Total 50 100%
ANALYSIS
From the above table maximum number of respondents,29 believe that the sales is measured on seasonal terms while nearly equal to that around 21 respondents believe that sales is geography base
CHART 6
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 60
58%42%
Distributors perception about sales.
Seasonal sales Geographical sales
MUNEER CARS
INFERENCE
A sale is always dependent on certain demand variables. These variables
decide that what influences demand. Change in seasons and geographic
features are mainly considered in the pharmaceutical sector.
From the above chart majority of respondents, 58% believe that sales of
Muneer cars are based on seasonal variable while other 42 % assume it to be
geographical. It can be inferred that certain drugs like asthma controlling
drugs have sales on geographic conditions with higher altitude causing cold
temperature. While cold tablets are sold more in winter and do not have good
sale in summers.
TABLE 7
The table showing the selling terms of Muneer cars By distributors
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 61
58%42%
Distributors perception about sales.
Seasonal sales Geographical sales
MUNEER CARS
Particulars No. of Respondents Percentage
Cash 4 8%
Credit 46 92%
Total 50 100%
ANALYSISFrom the above table maximum number of distributors, 46 liquidate their
goods on credit terms and only 4 respondents go for cash. There is a
difference of around 80% between the credit and cash selling terms. It shows
that the whole market is based on credit selling terms.
CHART 7
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8%
92%
Distributors selling terms.
CashCredit
MUNEER CARS
INFERENCE
Studying Distributors selling terms are of vital importance. This
activity fetches them finance again and again to continue the sales
periodically. Credit terms are not always good. The risk involved is of higher
level. Hence if the distributor faces financial threat because of bad debt it
would have a similar impact on sale. Hence cash term seems to be better.
From the above chart maximum number of distributors sells good on credit.
This shows the market is credit based. Cash terms are rare. It infers that
liquidation at various sales stages is credit based.
TABLE 8
The table showing time period of order placement From distributors
Particulars No. of Respondents Percentage
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 63
8%
92%
Distributors selling terms.
CashCredit
MUNEER CARS
Monthly 19 38%
Weekly 24 48%
Occasionally 7 14%
Total 50 100%
ANALYSIS
From the above table maximum number of respondents, 24 place order
weekly. While around 19 respondents place order monthly. Very few
respondents, 7 place order occasionally.
CHART
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Monthly Weekly Occas-sionally
0102030
38%48%
14%
Order placement period.
No. o
f Re-
spon
dent
s
MUNEER CARS
CHART 8
INFERENCE
Knowing the order placement cycle of distributors may help in meeting the
demands effectively. This gives important figures which help in production
at times.
From the above chart generally around 48% of distributors place order
weekly and hence Muneer goods have evergreen flow in the market. On
other hand 38% of distributors place order monthly showing healthy sales
signals. Very few distributors place order occasionally.
TABLE 9
The table showing the lead time of supply of Goods to distributors .
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MUNEER CARS
Particulars No. of Respondents Percentage
1-2 days 32 64%
3-4 days 12 24%
7 & above 6 12%
Total 50 100%
ANALAYSISFrom the above table maximum number of respondents, 32 believe
that the lead time of supply of goods is 1-2 days. Around 12 respondents believe the supply time is 3-4 days and very few distributors responded that lead time of supply was 7 and above
CHART 9
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1-2 days 3-4 days 7 & above0
10203040
64%
24%12%
Supply time of goods
No. o
f Res
pond
ents
MUNEER CARS
INFERENCE
Lead time of supply of goods to market is the gap between DEMAND AND
SUPPLY. The length of the gap determines perfection level. Short length
gives excellent network and reach to nook and corner of potential market.
From the above chart the lead time of supply is 1-2 days with 64%
respondents. While 24% respondents believe that supply time is 3-4 days.
Only 12% believe the supply time is 7 days and above. It infers that the
Muneer cars have excellent lead time. This has helped in pushing goods to
grass root level of Market.
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 67
1-2 days 3-4 days 7 & above0
10203040
64%
24%12%
Supply time of goods
No. o
f Res
pond
ents
MUNEER CARS
CHAPTER 5:
FINDINGS AND SUGGESTIONS
FINDINGS
Distributors are satisfied with profit margins and credit facility while
happy with schemes. Supply of goods is timely and measured to be 1-2 days.
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 68
MUNEER CARS
Distributors believe that there is good market response because of
brand image.
Most of distributors serve urban market with a less than half serve
rural market.
There has been a rapid growth in the number of distributors dealing
with MUNEER in past 5 years.
The major reason for good sales is credited to the brand image of
MARUTHI MOTORS with other minor factors like margin and counters.
Distributors sell goods on credit terms largely with rare occasions of
cash deals.
Majority of Distributors place order weekly followed by monthly.
Hence maintaining evergreen business cycle.
Distributors have a strong conviction about the tough competition
faced by MARUTHI MOTORS.
SUGGESTIONS:
MUNEER CARS has worked hard to make distribution channels
effective.
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MUNEER CARS
MUNEERCARS has to introduce new products in order to compete in
the market.
Top management of MARUTHI MOTORS, needs to concentrate more
on their channels of distribution all over India.
BIBILOGRAPHY
BOOK AUTHORMarketing Management S.A. SHERLEKAR
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 70
MUNEER CARS
Marketing Management PHILIP KOTLERMarketing (A Managerial Introduction)
V.C. GANDHI
Principal of Marketing B.S. RAMAN
Web Site www.marutisuzuki.com
www.muneercars.com
CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 71