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all bba , mba projects available pm me for more porjects. also play free online games @ http://www.gameswala.com/

all bba , mba projects available pm me for more porjects. also play free online games @ http://www.gameswala.com/

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50389164 ahmed-s-project-2010-11 Document Transcript

  • 1. http://www.gameswala.com/ A PROJECT REPORT ONCHANNEL OF DISTRIBUTION BY AHMED ALTAF BACHAV BBA (2010-2011) IN PARTIAL FULFILLMENT OF Bachelor of Business Administration 1http://www.gameswala.com/
  • 2. http://www.gameswala.com/i am vikas gupta, age 31 years . i start a gaming website namedwww.GamesWala.com which has PR4 and ratings below 4 lakh.i need here 1 help from you, as i have no money to promote my gaming site,iam running graphic shop with 1 PC (yes 1 PC :) think how i am surviving with 1PC and a family with 2 kids :P ), I do not know much about how to promotemy website, so i decided to talk with you friends to come and join my site andplay all the games for free, all games are personally selected by me fromthousands of games.I am updating my website daily with lots of awesome games.You can playwithout register or register you id or you also can play with your facebookID.hope you all will like my site and play free online games there, and dontforgot to tell your friends about mywww.GamesWala.com :) UNIVERSITY OF PUNESMT. KASHIBAI NAVALE COLLEGE OF COMMERCE LETTERHEAD WITH CONTENTS AS UNDER. CERTIFICATE 2 http://www.gameswala.com/
  • 3. http://www.gameswala.com/This is to certify that Mr.______________________________________Of S.K.N.C.C college has successfully completed the project worktitle______________________________________ in partial fulfillment ofrequirement for the award of Bachelor of Business Administrationprescribed by the University of Pune.This project is the record of authentic work carried out during the academicyear 2010-2011.Subject Teacher Principal DECLERATIONI, Mr.________________________________ hereby declare that thisproject is the record of authentic work carried out by me during the 3 http://www.gameswala.com/
  • 4. http://www.gameswala.com/academic year 2010-2011 and has not been submitted to any otheruniversity or institute towards the award of any degree. Signature of student AKNOWLAGEDMENT 4 http://www.gameswala.com/
  • 5. http://www.gameswala.com/Apart from the efforts of me, the success of any project depends largely on the encouragementand guidelines of many others. I take this opportunity to express my gratitude to the peoplewho have been instrumental in the successful completion of this project.I would like to show my greatest appreciation to Prof. Dr. Dharmadhikari N. S. and Mrs.Bokil Aparna. I can’t say thank you enough for their tremendous support and help. I feelmotivated and encouraged every time I attend their meeting. Without their encouragement andguidance this project would not have materialized.The guidance and support received from all the members of kerakool contributed and who arecontributing to this project, was vital for the success of the project. I am grateful for theirconstant support and help.Ahmed Altaf BachavEXECLUIVE SUMMERY 5 http://www.gameswala.com/
  • 6. http://www.gameswala.com/I started my project on 2nd of January by understanding the various types of products andits specification and know how to do site mapping and what is needed to do productpromotion at Mangalmurti complex,305-B,117/A,Next to Big Bazar,sinhgad Rd,pune,Corporate office of Kerakoll India Pvt. Ltd. There I met to Mr.sandeep and ask him to givedetail information about the execution of the work.he has the sample outfits of the wholeproducts by mens of which he gave me the detail information.four staff are working overthere one is to look after the computer center,and two are involved in the process ofgenerating sales and one Mr.sandeep himself,the regional sales manager.The site mapping team is to do the site map, means to find out the various runningconstruction, from there the site mapping team collect information like site name,contractor name, owner name, and architect name even the stage of the site. He thenprovides the information to the architect team to do further proceedings to generate thesales. The architect team then goes to architect after having the appointment and tellthem about the various products of kerakoll. In the mean while the site mapping teamalso done some product promotion at the place of running sites and by telling about theprodict to the contractors and site engineers. Apart from this the retail team is doing itsfurther effort to go for the retail penetration of the kerakoll product.First of all I prepard the questionnaire to work assigned to me. As per research work ,Myrespondents are infrastructureal product shop keeper, arichitect or project manager.Initially I was assigned to collect the information about the running project in the Pune. Iwas also asked to collect the information about the held up projects and the reasons fortheir helding up. On the first day i started with the area of swargate and market yard.There I come to know about the coustomer acquction. 6 http://www.gameswala.com/
  • 7. http://www.gameswala.com/ CONTENTSCHAPTER 1- INTRODUCTION Introduction to the company Mission Vision Value Milestone Award Social responsibilities Worldwide Finance 7 http://www.gameswala.com/
  • 8. http://www.gameswala.com/ 8http://www.gameswala.com/
  • 9. http://www.gameswala.com/ Chapter 1 Introduction Kerakoll, an international leader in applied chemistry for bulding industry, was found in1968 in sassuolo, Italy in the heart of worldwide ceramic industry. At just 29 years of old,Romano sghedoni founded kerakoll in 1968 in sassuolo,Modena. Today the company isworld leader in product and service for sustainable architecture, historicalrestoration and interior design.The first single component adhesives for ceramicdesign and product in his garage, were the result of his passion for construction andchemistry, combine with a huge love of engineering.His insight and amazing determination drove him in a continual pursuit of innovation,inventing one new product after another, each one with uniue technology and ease ofprofessional application to make laying homogenous tiles and natural stone easy,whatever the circumstances.The constant growth that followed enable the company to extend its operation into therestoration sector, where it turn it attention to tackling waterproofing problems, thedeterioration of concrete mistakenly considered indestructible, and the restoration ofbuilding plagued by damp.Sghedoni also applied his innovative approach to building a motivated team with ashared mission, vivion and values. The strong corporate culture that resulted led to thefoundation of kerakoll global service in 1990, establishing kerakoll as leading name in theconsultancy and end-to-end technical support field.His children Fabio, Gian Luca and Emilia assure the business continues to be guidedby the same sghedoni name and dedication , together they have championed the 9 http://www.gameswala.com/
  • 10. http://www.gameswala.com/internationalization process, building an international team, and adopting anincreasingly global approach and innovative way of adding value to brand .In September 2000 and April 2006,kerakoll increased its respective stack in SlcRinaldi and Rankover , both leading European manufactures of adhesives andvarnishes for the hardwood floor , and decorative coating for the construction industry.Kerakoll employee more than 1,100 people with an average age of 35 throughout its 15branches in Europe, USA, Asia and Australia,it export almost 40% of its product tomore than 100 different countries and supplies 20,000 builders merchant and 5,000wood flooring centers worldwide, serving the nigh on 2,000,000 building professionalswho choose kerakoll product every year.From the outset, the pillar of kerakoll vivion has always been to make the differencethrough innovation. This belie led first to launch of Biocalce and Building wellness inApril 2005, i.e. the new take on sustainable building in which the focus is to safeguardhealth and improve the uality of life, and kerakoll Design in February2007, the new eco-friendly solid surface in cementoresian that are particular favorite with architects, designengineers and interior designers.Product, service and specific knoe-how formed the basic of kerakoll’s rise to become TheInnovative Group , the only company to provide a global offering for contemporaryarchitecture, building wellness, Histrocial restoration and interio design.Over the year, the group has achieved acclaim for its rapid and steady growth,proof ofwhich can be seen in revenue which have risen from about 11 million Euro in 1990 to285 Euro in 2006.Kerakoll has 910 employees, 16 operating companies,9 manufacturingplants in Italy and abroad,3 research center , 1 training institute and 1 technical center. 10 http://www.gameswala.com/
  • 11. http://www.gameswala.com/With the gradual internationalization of the business, 35% of group revenue are nowgenerated throughout foreign sales, thanks to company presence in 14 countries: Manufacturing plant in spain, Poland and Greece. Sales network in united kingdom , france, Croatia, Portugal, Sweden, singapor, USA, India and Hungary based on local partnership or commercial companies.Innovation and research have always been the driving factors behind kerakoll expansion.Investment in these area account for about 5.5% of annual turnover and translate intocontinuous product improvement in line with market reuirment, as well as thedevelopment of new product/services which have broken new ground in buildingspractices.Kerakoll product are used in most important construction sites in Italy and around theworld. To name but few of architectural project signed by internationally acclaimedarchitects who chose kerakoll as their technological partner: “Citta della Musica By Renzo Piano In Rome, European court of Human Right by Richard Rogers in Strasbourg, World Trade Center by WJ Atkins & Partners in Bahrain, Queen sofia Palace of Arts by Santiago calatrava in Valencia. 11 http://www.gameswala.com/
  • 12. http://www.gameswala.com/ Mission & Vision.To represent GreenBuilding, the new low environmental impact approach tobuilding that safeguards the health and wellbeing of peopleWe think, develop and produce innovative solutions that focus on the environment and on improving bothhealth and quality of life by using eco-friendly and naturally breathable building materials that avoid the mostcommon illnesses caused by indoor pollution.Our vision is to interpret GreenBuilding as a new way of building that is kind on the environment, promotinghigher quality homes around the world and helping people to live better. 12 http://www.gameswala.com/
  • 13. http://www.gameswala.com/ Value. 13http://www.gameswala.com/
  • 14. http://www.gameswala.com/ 14http://www.gameswala.com/
  • 15. http://www.gameswala.com/The Kerakoll business culture to create value over timeKerakoll is determined to improve its performance in all ways, firm in the belief that tocreate value over time you have to first create a firm business culture.Business culture in Kerakoll means being committed to recognizing and reclaiming thevalue of key experiences and practices of the past, and at the same time beingconstantly willing to go out on a limb.Research and innovation only make sense in such a context, where progress goeshand-in-hand with restoration, preservation and reclaiming the heritage of thecompany’s past.The Kerakoll mission is to meet the needs of its consumers with a constant supply ofnew and original ideas, remaining ever faithful to a business culture always ready toconsider the ideas of all its members.When it comes to knowledge assets, people are a key resource forKerakoll along with the values, expectations, hopes, ideas and originality they bringwith them.This belief is the cornerstone of the Kerakoll business ethos, and the five pillars of thisapproach represent our modus operandi in both life and work. 15 http://www.gameswala.com/
  • 16. http://www.gameswala.com/Innovative People in Kerakoll, both men and women alike, have ideas and initiative, and are creative beings applyinginnovation and invention to all that they do, inspired by change and excited by experimentation. Only inquiring minds of this kind can produce the unique and original discoveries that are the founding pillars of the Kerakoll The GreenBuilding Company. 16 http://www.gameswala.com/
  • 17. http://www.gameswala.com/ Responsible.Responsible Kerakoll people are careful and responsible, both trustworthy and 
correct in their dealings with consumers, colleagues and stakeholders in order to promote a new development model bringing economic growth, wellbeing, quality of life and a safe environment. 17 http://www.gameswala.com/
  • 18. http://www.gameswala.com/ Dynamic.Dynamic Kerakoll people are enthusiastic, and truly passionate about excellence and leadership. They are both pragmatic and fast- thinking in making decisions, and flexible and capable in adapting to change. The aim is to improve one day at a time, consolidating relations with customers and with key stakeholders. 18 http://www.gameswala.com/
  • 19. http://www.gameswala.com/ TrueTrue Kerakoll people have a young, flexible outlook, and are open, honest and genuine. In their work they are down-to-earth, humble and driven by a simple entrepreneurial spirit which enables them to be inventive and to pursue their creations with a team-oriented approach. 19 http://www.gameswala.com/
  • 20. http://www.gameswala.com/ AwareWorldwideFinanceAware Kerakoll people listen to the market, firm in the belief that the best ideas always come from stakeholders; a line of contact is always maintained with the market in order to understand needs and turn them into solutions capable of generating only the best results. 20 http://www.gameswala.com/
  • 21. http://www.gameswala.com/ Milestone.Milestones 1968 Realizing the huge potential to be tapped, Romano Sghedoni started producing tile adhesive in his garage and founded Kerakoll in Sassuolo, province of Modena, at the heart of worldwide ceramic industry. 21 http://www.gameswala.com/
  • 22. http://www.gameswala.com/ 1978 H40 Flex was invented, the world’s first single-component SAS (Shock Absorbing System) technology adhesive. This was a landmark moment for the ceramic industry as it provided a secure way of fixing single-fired materials and homogeneous slabs in high stress applications. It was also the first step on the road to success. 1990 Kerakoll ventured into the construction industry with high- resistance laying systems for ceramic tiles and natural stone, leading the way and partnering construction companies around the world. Single-technology, BME (Low Elastic Modulus) technology was introduced, revolutionising the concept of special mortars for concrete. 2000 Investment in Green Technology R&D rose from 15% to 50%. Kerakoll acquired its stake in SLC and launched an industrial reorganization to change from a chemical company to an ecofriendly company. The guidelines are: in the first 5 years, cut back on solvents used by 60%; develop new ecological and water-based products; low VOC emission-certified products. 2003 22http://www.gameswala.com/
  • 23. http://www.gameswala.com/ Invention of Keratech, the next generation in eco-compatible self- levelling products with HDE technology. For the first time, hypoallergenic cements with low chromium salt content are used, and are certified as having the lowest levels of volatile organic compound emissions in their category. 2004 Kerakoll welcomes MIGRA, an eco-friendly company specializing in the recovery of the mineral residues resulting from marble processing in the quarries at Carrara (Italy). The recycled mineral used in Kerakoll products comes from residues of other production processes, and is not extracted from new raw materials, thereby converting the large amount of energy generally required for the disposal of waste products into a useful resource that protects our ecosystem. Two hundred thousand tons of inert mineral are recycled every year. 2005 Biocalce was introduced, the first BIO range of NHL-based mortars, plasters and paints that let buildings breath. There is a rising awareness among the general public of the risk to our health that the air inside our houses and Sick Building Syndrome pose. Kerakoll Campus opened, Europe’s finest and most expert training academy in the development of a green culture for the building industry. 23http://www.gameswala.com/
  • 24. http://www.gameswala.com/ 2006 Kerakoll acquired Rankover, a company founded in 1972 in Zimella (Verona) and a leading European business in the formulation, production and development of decorative eco- coatings for sustainable building and at the cutting edge of the production of natural paint coats for historical restoration. Joint scientific projects commenced with the European Commission’s Joint Research Centre to identify the main indoor pollutants with relation to breathability and dilution of Kerakoll’s BIO range of natural materials. 2007 Kerakoll Design was born, the new home design brand behind Cementoresina, the revolutionary, low environmental impact compound for joint-free surfaces that are perfect in eco- sustainable design. The first Kerakoll Design Gallery showroom opened in the heart of Milan’s design district. 2008 Construction began on the Kerakoll GreenLab, the futuristic Research Centre that encompasses nine advanced Green Technology development labs where 100 new green building researchers will be employed. Designed and built entirely with GreenBuilding materials and technology, the Kerakoll GreenLab is one of the first examples in Europe of an industrial building with low-environmental impact, 24http://www.gameswala.com/
  • 25. http://www.gameswala.com/ extreme living comfort, and high energy efficiency. 2009 The launch of Nanoflex, the first waterproof eco-membrane certified to have low VOC emissions. Nanoflex is a friend of the environment, as it is the first eco-technology designed product to reduce CO2 emissions into the atmosphere. Designed using more than 30% recycled materials, and itself recyclable as an inert material at the end of its life, Nanoflex represents the best of low environmental impact technology. The laboratory for microbiology and environmental health at CSTB, the French Scientific and Technical Centre for Building, confirmed the natural antibacterial action of Kerakoll natural hydraulic lime. 2010 Kerakoll becomes The GreenBuilding Company, the leading world manufacturer of GreenBuilding solutions, boasting a technological supremacy famous around the globe. With over 1,700 eco-friendly items and production of over 950,000 tons/year, Kerakoll is the leading manufacturer of green materials for designing, building, and living in harmony with the environment and in healthy spaces. 25http://www.gameswala.com/
  • 26. http://www.gameswala.com/ AwardMission & VisionThe GreenBuilding CompanyValuesMilestonesAwardsSocialResponsibilityWorldwideFinance 26 http://www.gameswala.com/
  • 27. http://www.gameswala.com/Awards Kerakoll ranked number one in its field for competitiveness Number one for people management, speed of innovation, product reputation and high standards of service. Having customers name us as their partner is a testament of the quality of our products, services, attention to detail, reliability, efficiency and reputation. These principles have taken Kerakoll to the very forefront of the industry for competitiveness and quality of the company’s Made in Italy strategy, a rare accreditation awarded to the small number of elite businesses that continue to generate value. Social ResponsibilitySocial Responsibility Integrated policy for total quality, wellbeing and protection of the environment 27 http://www.gameswala.com/
  • 28. http://www.gameswala.com/ We pride ourselves on our quality, we are guided by our commitment to society and the health of people, and tireless in our promotion of environmental sustainability. Focus on the environmental sustainability of a home as it relates to the health of its inhabitants: this is the core philosophy that underlies Kerakoll GreenBuilding. The pillars of healthy housing are indoor air quality, advanced environmental and energy standards, and healthy spaces that exist in harmony with nature. Kerakoll’s personal approach aims to integrate the many aspects of GreenBuilding into everyday life, in keeping with the growing environmental sensibility of every individual. We believe that: our mission is to make technology more sustainable and to develop an associated model of development: the true aim of any business should be to develop projects of low environment impact but of huge technological innovation. Kerakoll’s commitment in this direction can be seen in everyday things, in business, and in our awareness of consumer needs in order to satisfy current requirements without jeopardizing the wellbeing of future generations. This is not just an economic mission, but also one of corporate social responsibility which guides and unites everyone here at Kerakoll. That’s why at Kerakoll we see business and social responsibility as going hand in hand, which means we make it our business to improve the quality of life of people and the environment they live in. 28http://www.gameswala.com/
  • 29. http://www.gameswala.com/ Worldwide 29http://www.gameswala.com/
  • 30. http://www.gameswala.com/Worldwide Taking Made in Italy excellence around the world In its 40 years in the industry, Kerakoll has been so successful that it has gone from being top of the domestic market to a top Italian-based business in Europe, before also becoming a leading European group (and Italian at heart) bound for the international arena. Worldwide Kerakoll Worldwide Find on the map International expansion and an ever more global approach have certainly not eroded the longstanding Kerakoll identity. The company has remained faithful to the values that saw it rise to 1st place in the production of GreenBuilding solutions around the world with more than 1,700 items that are 100% eco-friendly. Innovation, respect for the environment, concern for health and living comfort, and a pure wholesome approach are the defining tenets of Kerakoll. The international dimension of the company also emerges in the makeup of our management team 30 http://www.gameswala.com/
  • 31. http://www.gameswala.com/ In global markets, the majority of managers are selected locally, which explains why you’ll find local experts heading up our branches in USA, India, UK, Portugal, Germany and Hungary. Our intense investment policy and 12 branch operations around the world have enabled us to continue to grow and consolidate our position, the aim being to keep in close range of our markets. Over the years, Kerakoll has carved out an extremely competitive position for the company in its benchmark markets, managing to take our standards of customer service to new levels by making sure our full product range is constantly in stock in the local market. Large amounts of money were also invested in 2009 to improve our technical support service, our intention being to offer a standardized global support service by qualified Kerakoll Worldwide Global Service experts onsite within 24 hours of the call-out. Kerakoll Worldwide Global Service 400 GreenBuilding Consultants Highly professional team whose skills and knowledge are in constant development Onsite Technical Support Expert site visits Technical Consultancy Service Call Centre with 40 experts providing real-time assistance Online technical support 24/7 web assistance Special quick call-out service Expert assistance onsite within 24 hours of the call Finance. 31http://www.gameswala.com/
  • 32. http://www.gameswala.com/Finance Kerakoll, a global leader in the GreenBuilding materials market In the current global era, Kerakoll continues to invest in tangible and intangible assets as part of a master plan bringing constant growth from financial year to financial year and a place in the elite group of key competitors set to dominate the international marketplace in the future. Finance Growth in turnover from 1990 to 2009 and Kerakoll position in the market of GreenBuilding products download.pdf Competition in the modern marketplace is driven by green innovation, and success is measured by unique, intangible values such as human capital, brand recognition and customer satisfaction levels. The Kerakoll strategy is clear, and based on the realization that 32 http://www.gameswala.com/
  • 33. http://www.gameswala.com/ having a good product alone is not enough to survive in the marketplace. To emerge, the Company also needs to focus on internationalization, process innovation, culture and the pursuit of total quality. Kerakoll The GreenBuilding Company serves the high-end of the global market for GreenBuilding products. To compete at this level, the company delivers quality that is kind on the environment, customer service, brand value, and a far-reaching distribution network, never losing sight of the company identity and remaining true to our values.Channel Structure and Membership IssuesPaths to the customer. For most products and situations, it is generally more efficient for amanufacturer to go through a distributor rather than selling directly to the customer. This isespecially the case when consumers need to have variety and assortment (e.g., consumerwould like to buy not just toothpaste but also other personal hygiene products, and evenother grocery products at the same place), when products are bought in small volumes or atlow value (e.g., a candy bar sells for less than $1.00), or even intermediaries have skills orresources that the manufacturer does not (a sales force, warehousing, and financing).Nevertheless, there are situations when these conditions are not met—most typically inindustrial settings. As an extreme case, most airlines are perfectly happy only being able tobuy aircraft and accessories from Boeing and would prefer not to go through a retailer—particularly since the planes are often highly customized. More in the "gray" area, it may ormay not be appropriate to sell microcomputers directly to consumers rather than goingthrough a distributor—the costs of providing those costs may be roughly comparable to themargin that a distributor would take.Potential channel structures. Channel structures can assume a variety of forms. In theextreme case of Boeing aircraft or commercial satellites, the product is made by themanufacturer and sent directly to the customer’s preferred delivery site. Themanufacturer, may, however, involve a broker or agent who handles negotiations but doesnot take physical possession of the property. When deals take on a smaller magnitude,however, it may be appropriate to involve retailer--but no other intermediary. For example, 33 http://www.gameswala.com/
  • 34. http://www.gameswala.com/automobiles, small planes, and yachts are frequently sold by the manufacturer to a dealerwho then sends directly to the customer. It does not make sense to deliver these bulkyproducts to a wholesaler only to move them again. On the other hand, it would not makesense for a California customer to fly to Detroit, buy a car there, and then drive it home. Asthe need for variety increases, a wholesaler may then be introduced. For example, an officesupply store needs to sell more merchandise than any one manufacturer can produce.Therefore, a wholesaler will buy a very large quantity of binders, file folders, staplers,reams of paper, glue sticks, and similar products and sell this in smaller quantities—say 200staplers at a time—to the office supply store, which, in turn, may go to another wholesalerwho has acquired telephones, typewriters, and photocopiers. Note that more than onewholesaler level may be involved—a local wholesaler serving the Inland Empire may buyfrom each of the two wholesalers listed above and then sell all, or most, of the productsneeded by local office supply stores. Finally, even in longer channels, agents or brokers maybe involved. This, in particular, will happen when the owner of a small, entrepreneurialcompany has more experience with technology than with businesses negotiations. Here, themanufacturer can be freed, in return for paying the agent, from such tasks, allowing him orher to focus on what he or she does well.Criteria in selecting channel members. Typically, the most important considerationwhether to include a potential channel member is the cost at which he or she can performthe required functions at the needed level of service. For example, it will be much lessexpensive for a specialty foods manufacturer to have a wholesaler get its products to theretailer. On the other hand, it would not be cost effective for Procter & Gamble and Wal-Mart to involve a third party to move their merchandise—Wal-Mart has been able todevelop, based on its information systems and huge demand volumes, a more efficientdistribution system. Note the important caveat that cost alone is not the onlyconsideration—premium furniture must arrive in the store on time in perfect condition, sopaying more for a more dependable distributor would be indicated. Further, channels for 34 http://www.gameswala.com/
  • 35. http://www.gameswala.com/perishable products are often inefficiently short, but the additional cost is needed in orderto ensure that the merchandise moves quickly. Note also that image is important—Wal-Martcould very efficiently carry Rolex watches, but this would destroy value from the brand."Piggy-backing." A special opportunity to gain distribution that a manufacturer wouldotherwise lack involves "piggy-backing." Here, a manufacturer enlists another manufacturerthat already has a channel to a desired customer base, to pick up products into an existingchannel. For example, a manufacturer of rhinoserous and hippopotamus shampoo might beable to reach zoos by approaching a manufacturer of crocodile teeth cleaning supplies thatalready reaches this target. In the case of reciprocal piggy-backing, the shampoomanufacturer might then, in turn, bring the teeth cleaning supplies through its existingchannel to exotic animal veterinarians.Parallel Distribution. Most manufacturers find it useful to go through at least onewholesaler in order to reach the retailer, and it is simply not efficient for Colgate to selldirectly to pathetic little "mom and pop" neighborhood stores. However, large retail chainssuch as K-Mart and Ralph’s buy toothpaste and other Colgate products in such large volumesthat it may be efficient to sell directly to those chains. Thus, we have a "parallel"distribution network whereby some retailers buy through a distributor and others do not.Note that we may also be tempted to add a direct channel—e.g., many clothingmanufacturers have factory outlet stores. However, note that the full service retailers willlikely object to being "undercut" in this manner and may decide to drop or give lessemphasis to the brand. It may be possible to minimize this contract by precautions such as(1) having outlet stores located in vacation areas not within easy access of most people, (2)presenting the merchandise as being slightly irregular, and/or (3) emphasizing discontinuedbrands and merchandise not sold in regular stores.Evaluating Channel Performance. The performance of channel members should beperiodically monitored—a channel member may have looked attractive earlier but may not,in practice be able to live up to promises. (This can be either because of complacency orbecause the channel member simply did not realize the skills and resources needed to 35 http://www.gameswala.com/
  • 36. http://www.gameswala.com/perform to standards). Thus, performance level (service outputs) and costs should beevaluated. Further, changes in technology or in the market place may make it worthwhileto shift certain functions to another channel member (e.g., a distributor has expanded itscoverage into another region or may have gained or lost access to certain retail chains).Finally, the extent to which compensation is awarded in proportion to performance shouldbe reassessed—e.g., a distributor that ends up holding inventory longer or taking on morereturns may need additional compensation. Market balance: It is essential that differentfirms in the same business not attempt to compete on exactly the same variables. If theydo, competition will invariably degenerate into price—there is nothing else that woulddifferentiate the firms. Thus, for example, in the retail food market, there are low pricesupermarkets such as Food 4 Less that provide few if any services, intermediate levelmarkets like Ralph’s, and high-end markets such as Vons’ Pavillion that charge high pricesand claim to carry superior merchandise and offer exceptional serviceRisk: In general, firms that attempt riskier ventures—and their stockholders—expect ahigher rate of return. Risks can come in many forms, including immediate loss of profit dueto lower sales and long term damage to the brand because of a poor product being releasedor because of distribution through a channel perceived to carry low quality merchandise. 36 http://www.gameswala.com/
  • 37. http://www.gameswala.com/Distribution ObjectivesObjectives: A firm’s distribution objectives will ultimately be highly related—some willenhance each other while others will compete. For example, as we have discussed, moreexclusive and higher service distribution will generally entail less intensity and lesserreach. Cost has to be traded off against speed of delivery and intensity (it is much moreexpensive to have a product available in convenience stores than in supermarkets, forexample).Narrow vs. wide reach: The extent to which a firm should seek narrow (exclusive) vs. wide(intense) distribution depends on a number of factors. One issue is the consumer’slikelihood of switching and willingness to search. For example, most consumers will switchsoft drink brands rather than walking from a vending machine to a convenience storeseveral blocks away, so intensity of distribution is essential here. However, for sewingmachines, consumers will expect to travel at least to a department or discount store, andpremium brands may have more credibility if they are carried only in full service specialtystores.Retailers involved in a more exclusive distribution arrangement are likely to be more“loyal”—i.e., they will tend to Recommend the product to the customer and thus sell large quantities; Carry larger inventories and selections; Provide more servicesThus, for example, Compaq in its early history instituted a policy that all computers mustbe purchased through a dealer. On the surface, Compaq passed up the opportunity to selllarge numbers of computers directly to large firms without sharing the profits with dealers.On the other hand, dealers were more likely to recommend Compaq since they knew thatconsumers would be buying these from dealers. When customers came in asking for IBMs,the dealers were more likely to indicate that if they really wanted those, they could havethem—“But first, let’s show you how you will get much better value with a Compaq.”Distribution opportunities: Distribution provides a number of opportunities for themarketer that may normally be associated with other elements of the marketing mix. Forexample, for a cost, the firm can promote its objective by such activities as in-storedemonstrations/samples and special placement (for which the retailer is often paid).Placement is also an opportunity for promotion—e.g., airlines know that they, as “prestigeaccounts,” can get verygood deals from soft drink makers who are eager to have theirproducts offered on the airlines. Similarly, it may be useful to give away, or sell at lowprices, certain premiums (e.g., T-shirts or cups with the corporate logo.) It may even bepossible to have advertisements printed on the retailer’s bags (e.g., “Got milk?”)Other opportunities involve “parallel” distribution (e.g., having products sold both throughconventional channels and through the Internet or factory outlet stores). Partnerships and 37 http://www.gameswala.com/
  • 38. http://www.gameswala.com/joint promotions may involve distribution (e.g., Burger King sells clearly branded Hersheypies).Deciding on a strategy. In view of the need for markets to be balanced, the samedistribution strategy is unlikely to be successful for each firm. The question, then, isexactly which strategy should one use? It may not be obvious whether higher margins in aselective distribution setting will compensate for smaller unit sales. Here, various researchtools are useful. In focus groups, it is possible to assess what consumers are looking for anwhich attributes are more important. Scanner data, indicating how frequently variousproducts are purchased and items whose sales correlate with each other may suggest thebest placement strategies. It may also, to the extent ethically possible, be useful toobserve consumers in the field using products and making purchase decisions. Here, onecan observe factors such as (1) how much time is devoted to selecting a product in a givencategory, (2) how many products are compared, (3) what different kinds of products arecompared or are substitutes (e.g., frozen yogurt vs. cookies in a mall), (4) what are“complementing” products that may cue the purchase of others if placed nearby. Channelmembers—both wholesalers and retailers—may have valuable information, but theircomments should be viewed with suspicion as they have their own agendas and may distortinformation. 38 http://www.gameswala.com/
  • 39. http://www.gameswala.com/What channel of distribution will they use?Two types of channel of distribution methods are available. Indirect distribution involves distributingyour product by the use of an intermediary for example a manufacturer selling to a wholesaler and thenon to the retailer.. Direct distribution involves distributing direct from a manufacturer to the consumerFor example Dell Computers providing directly to its target custmers. The advantage of directdistribution is that it gives a manufacturer complete control over their product. 39 http://www.gameswala.com/
  • 40. http://www.gameswala.com/Above indirect distribution (left) and direct distribution (right). 13. Selective Distribution: A small number of retail outlets are chosen to distribute theproduct. Selective distribution is common with products such as computers, televisions householdappliances, where consumers are willing to shop around and where manufacturers want a largegeographical spread.If a manufacturer decides to adopt an exclusive or selective strategy they should select a intermediarywhich has experience of handling similar products, credible and is known by the target audience.Kerakoll Distribution Channel1.KerakollWhole salerRetailer 40 http://www.gameswala.com/
  • 41. http://www.gameswala.com/Architects/ contractors(Customer)Clients(Consumer)Explain This as I had explained u.2nd type of channel.KerakollBuilder(Consumer)Explain This as I had explained u.a.bachav@yahoo.comProduct distribution (or place) is one of the four elements ofthe marketing mix. An organization or set of organizations (go-betweens) involved in the process of making a product or serviceavailable for use or consumption by a consumer or business user.The other three parts of the marketing mix are product, pricing,and promotion. 41 http://www.gameswala.com/
  • 42. http://www.gameswala.com/ Contents [hide]1 The distribution channel o 1.1 Channels o 1.2 Channel decisions2 Managerial concerns o 2.1 Type of marketing channel o 2.2 Channel motivation o 2.3 Monitoring and managing channels3 See also4 References o 4.1 Specific types of distribution5 External links[edit]The distribution channelDistribution is also a very important component of Logistics & Supplychain management. Distribution in supply chain management refers tothe distribution of a good from one business to another. It can befactory to supplier, supplier to retailer, or retailer to end customer. It isdefined as a chain of intermediaries, each passing the product downthe chain to the next organization, before it finally reaches theconsumer or end-user. This process is known as the distribution chainor the channel. Each of the elements in these chains will have theirown specific needs, which the producer must take into account, alongwith those of the all-important end-user.[edit]ChannelsA number of alternate channels of distribution may be available: Distributor, who sells to retailers, Retailer (also called dealer or reseller), who sells to end customers Advertisement typically used for consumption goods 42 http://www.gameswala.com/
  • 43. http://www.gameswala.com/Distribution channels may not be restricted to physical products alicefrom producer to consumer in certain sectors, since both direct andindirect channels may be used. Hotels, for example, may sell theirservices (typically rooms) directly or through travel agents, touroperators, airlines, tourist boards, centralized reservation systems, etc.process of transfer the products or services from Producer to Customeror end user.There have also been some innovations in the distribution of services.For example, there has been an increase in franchising and in rentalservices - the latter offering anything from televisions through tools.There has also been some evidence of service integration, withservices linking together, particularly in the travel and tourism sectors.For example, links now exist between airlines, hotels and car rentalservices. In addition, there has been a significant increase in retailoutlets for the service sector. Outlets such as estate agencies andbuilding society offices are crowding out traditional grocers from majorshopping areas.[edit]Channel decisionsChannel Sales is nothing but a chain for to market a product throughdifferent sources. Channel strategy Gravity & Gravity Push and Pull strategy Product (or service) Cost Consumer location[edit]Managerial concernsThe channel decision is very important. In theory at least, there is aform of trade-off: the cost of using intermediaries to achieve widerdistribution is supposedly lower. Indeed, most consumer goodsmanufacturers could never justify the cost of selling direct to theirconsumers, except by mail order. Many suppliers seem to assume that 43 http://www.gameswala.com/
  • 44. http://www.gameswala.com/once their product has been sold into the channel, into the beginning ofthe distribution chain, their job is finished. Yet that distribution chain ismerely assuming a part of the suppliers responsibility; and, if they haveany aspirations to be market-oriented, their job should really beextended to managing all the processes involved in that chain, until theproduct or service arrives with the end-user. This may involve anumber of decisions on the part of the supplier: Channel membership Channel motivation Monitoring and managing channels[edit]Type of marketing channel 1. Intensive distribution - Where the majority of resellers stock the product (with convenience products, for example, and particularly the brand leaders in consumer goods markets) price competition may be evident. 2. Selective distribution - This is the normal pattern (in both consumer and industrial markets) where suitable resellers stock the product. 3. Exclusive distribution - Only specially selected resellers or authorized dealers (typically only one per geographical area) are allowed to sell the product.[edit]Channel motivationIt is difficult enough to motivate direct employees to provide thenecessary sales and service support. Motivating the owners andemployees of the independent organizations in a distribution chainrequires even greater effort. There are many devices for achievingsuch motivation. Perhaps the most usual is `incentive: the supplieroffers a better margin, to tempt the owners in the channel to push theproduct rather than its competitors; or a compensation is offered to thedistributors sales personnel, so that they are tempted to push theproduct. Julian Dent defines this incentive as a Channel ValueProposition or business case, with which the supplier sells the channel 44 http://www.gameswala.com/
  • 45. http://www.gameswala.com/member on the commercial merits of doing business together. Hedescribes this as selling business models not products.[edit]Monitoring and managing channelsIn much the same way that the organizations own sales anddistribution activities need to be monitored and managed, so will thoseof the distribution chain.In practice, many organizations use a mix of different channels; inparticular, they may complement a direct salesforce, calling on thelarger accounts, with agents, covering the smaller customers andprospects. These channels show marketing strategies of anorganization. Effective management of distribution channel requiresmaking and implementing decision in these areas.[edit]Using the marketing mixThe luxurious perfumery at The Galeries Lafayette Department store in Paris only sells premium brandsAn exclusive brand of jewellery uses the best materials but comes at a high price. Suchdesigner brands can only be bought at exclusive stores and are promoted using personalselling sales assistants. By contrast, cheap and cheerful jewellery for the mass market isbest sold in supermarkets and can be promoted using television adverts. 45 http://www.gameswala.com/
  • 46. http://www.gameswala.com/Market research findings are important in developing the overall marketing mix for a givenproduct. By identifying specific customer needs a business can adjustthefeatures, appearance, price anddistribution method for a target market segment.New technologies and changing fashion means goods and services have a limitedproduct life cycle. Ideally, the marketing mix is adjusted to take account of each stage.For example, the life of a product can be extended by changingpackaging to freshen atired brand and so boost sales.Market stalls generally sell inexpensive itemsThere is no single right marketing mix that works for all businesses at all times. Thecombination of product, price promotion and place chosen by a business will depend on itssize, competition, the nature of the product and its objectives.The overall marketing mix is the business’marketing strategy and is judged a success ifit meets the marketing department’sobjectives, eg increase annual sales by 5%. 46 http://www.gameswala.com/