MARKETING CHANNELS- shandis, mandis, market yards, direct procurement

1. MARKETING CHANNELS- shandis,
mandis, market yards, direct
procurement

2. CONTENT
• Meaning & Definition
• Role of Marketing Channels in marketing
strategy
• Different types of Marketing Channels
• Innovative Marketing Channels
• Reference

3. Meaning
• The routes through which agricultural products
move from Producer to Consumer.
• The length of the channel varies from
commodities
• A marketing channel is a useful tool for
management, and is crucial to creating an
effective and well-planned marketing strategy

4. Definition
• A marketing channel is a set of practices or
activities necessary to transfer the ownership of
goods, from the point of production to the point
of consumption.
( www.wikipedea.com)

5. The chain of intermediaries through whom the various
foodgrains pass from producers to consumers.
(Moore et.al.)
Alternative routes of product flows from
producer to consumer.
(Kohls & Uhl)

6. Roles of marketing channel in marketing
strategies
• Links producers to buyers
• Influences the firm's pricing strategy
• Affects product strategy through branding,
policies, willingness to stock
• Customizes profits, install, maintain, offer
credit, etc.

7. Types of Marketing Channels
Mainly four types of marketing channels,
Producer --> Customer
Producer --> Wholesaler/Distributor -->
Customer
Producer --> Retailer --> Consumer
Producer --> Agent/Broker --> Wholesaler
or Retailer --> Customer

9. Some Innovative marketing Channels
 Apni Mandi/ Kisan mandi(Punjab)
Hadaspar vegetable market(Pune)
Rythu Bazar(Andhra Pradesh)
Uzhuvar sandies(Tamil Nadu)
Shetkari Bazar(Maharashtra)

10. Krushak Bazar(Orissa)
Mother Dairy Booths(Delhi)
Safal market (Karnataka)
VFPCK (Kerala)

11. Mandis
• Presence of direct contact between farmer
producer & the buyer
• Farmers sell their produce without involvement
of middlemen
• Price spread is low
• These are similar to Saturday markets of UK
&USA

12. History
• Started in Punjab state (Chandigarh), in
February, 1987
• Initiatives were taken care by Punjab Mandi
Board
• Similarly in Haryana(Karnal), Rajasthan scheme
has been implemented

13. Functions
• Market committee where Mandi is located
provides space, water, sheds, counters, balances
etc.
• SAMB provide financial assistance to the market
committee…
• Middlemen were removed
• Reservation for the farmers

14. Sandies
• Established in the year 1999 by the State Gov. of
T.N
• Farmers enjoy better marketing infrastructure
free of cost & also receive considerably high
prices for the products
• Fresh vegetables and fruits at relatively lower
price compared to other markets

15. Objectives
• Establishing direct contact between farmer-
producer to Consumer
• To assure fair price
• To provide fresh vegetables to the consumers at
fair price
• To promote honest trading, and
• To ensure timely availability of vegetables &
fruits

17. Direct Procurement
• Direct procurement is the act of acquiring raw
materials and goods for production.
• Purchases are generally done in large quantities,
acquired from a pool of suppliers at the best
possible cost, quality and reliability.

18. • These purchases are made frequently and are
necessary for key business practices, such as a baker
acquiring wheat to produce bread.
• If direct procurement stops functioning or
encounters problems, companies are no longer able
to manufacture their product and create revenue

19. Direct procurement and indirect procurement
TYPES
Direct procurement Indirect procurement
Raw material and
production goods
Maintenance, repair, and
operating supplies
Capital
goods and
services
FEATURES
Quantity Large Low Low
Frequency High Relatively high Low
Value Industry specific Low High
Nature Operational Tactical Strategic
Examples
Crude oil in petroleum
industry
Lubricants, spare parts
Crude oil
storage
facilities

20. Procurement software
• Procurement software (often labeled as e-
Procurement software) manages the purchasing
processes electronically and/or via cloud computing.
• Procurement Network's research provides, more
than one hundred e-Procurement solutions .
• As an important element of supply chain
management systems, these systems help
organizations efficiently manage their purchasing
cycle times and maximize profit on every purchase
order.

21. • Many organizations produce their own ways of
working but some software does exist: SMART
by GEP, a cloud-based, end-to-end procurement
platform by GEP, Track8 by Future
Purchasing, Puridiom - procure-to-pay software,
Fishbowl Inventory - Inventory management

22. Functions
• The e-procurement value chain consists of
indent management, e-Tendering, e-Auctioning,
vendor management, catalogue management,
Purchase Order Integration, Order Status, Ship
Notice, e-Invoicing, e-Payment, and contract
management

23. References
Acharya . S.S and Agarwal . N.L. 2011,
Agricultural Marketing in India ,Oxford &IBH
publishing , New Delhi
www.en.wikipedia.com