Distribution Channel in Farm Implements Market

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Farm implement or equipment is an important agi-input sector.Indian farm equipment sector is in its nascent phase and gradually developing.Modernisation and govt subsidy are two major motivators for this growth. Distribution Channel of this sector is not much different than other agri input sectors but there are some unique characteristics.

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Distribution Channel in Farm Implements Market

  1. 1. Distribution Channel [Farm Implements] Course: Agri-Input Marketing[PGDM2011-13],Indian Institute of Plantation Management, Bangalore Presented by- BIDHU BHUSHAN BINIT(11PGDM08)
  2. 2. Contents Backdrop Indian Farm Equipment Market Existing Distribution Channel Framework Channel Dimensions & Analysis - number of channel levels - channel alternatives - information flow Scope for New Channel Dynamics Path Ahead
  3. 3. Backdrop Distribution Channel Designing & Channel managing Marketing Channels Shaping the Market Offering Developing Market Strategies
  4. 4. Backdrop“The middlemen is not a hired link in a chain forged by a manufacturer, but rather an independent market, the focus of a large group of customers for whom he buys.” - Phillip McVey
  5. 5. Indian Farm EquipmentMarket(contribution)
  6. 6. Types of Farm Equipments
  7. 7. Indian Farm Equipment Market
  8. 8. Industry Growth
  9. 9. Existing Distribution Channel Framework Retaile r Equipment Retaile Consum Manufactu wholesaler er rer r (Farmer) wholesale Retaile jobber r r >No existance of C&F agents ,which is unlike to other agri-input sectors. >Sometimes, there is one intermediary which works as both wholesaler as well as retailer . > Transfer of title of goods .
  10. 10. Number of channel levels dealer manuf acturer farmer wholesale r dealer
  11. 11. Channel AlternativesType of Business Intermediaries Number of Intermediaries Manufacturers of farm  Manufacturers goes both for equipments opts for intensive distribution as well as for exclusive distribution. conventional type of intermediaries. Products are  It depends on the potential of for farmers, usually wholesalers market, sales potential and type of equipment. and retailers they choose.  Usually Tractor market shows No innovative types are in the ,exclusive distribution with line. exclusive dealing.  Exclusive dealing means dealer not to carry complete line.
  12. 12. Information flow(through channel) Local manufacture Zonal sales sales dealer r office office Barefoot salesma n Banks/fin Consume ancial r/farmer institution s
  13. 13. Scope for new channel dynamics Farm equipment manufacturing company has been in practice of conventional marketing channels. In other sectors vertical marketing system has been adopted, the nature of this agri-input sector itself supports in resistance to new channel dynamics. In exclusive dealership, it can be said that essence of VMS can be felt in terms of power of manufacturer(brand power) but not in the form of ownership.
  14. 14. Path Ahead in distribution channel of FarmImplements Industry is in its nascent phase in comparison to other agri-input sectors, so in future lot of changes will be seen. Today, manufacturers seems to be much dependent on their channel partners which veils the information flow. There is much scope of value addition on channel level. Usually service centers are established with dealers. If it is made to the village level, it will create a new dimension for channel resulting into transparent flow of information with customer satisfaction and also this move will bring augmentation.
  15. 15. THANK YOU !

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