The document discusses the channel management structure of Direct Marketing Association of Nepal. It outlines the company's current positioning and channel structure, which includes a head office, regional offices, and zonal offices. The channel functionality involves sole distribution through various regional and zonal levels. Challenges include high agent attrition, conflicts at zonal levels, and logistics issues. The future plan is to launch a weekly newspaper to help with PR and product sales.

1. CHANNEL MANAGEMENT PROJECT DIRECT MARKETING ASSOCIATION OF NEPAL BY ANUP RAYAMAJHI GDEC08SMM184

2. CONTENTS About the Company Current Positioning of the Company Channel Structure Channel Functionality Channel Financial Aspect Challenges Future Look Through Geography of Nepal References

3. ABOUT THE COMPANY Established in the year 2003, in the capital of Eastern Region of Nepal , Biratnagar The First Direct Marketing Company in the Eastern Region of Nepal Started with three products : Talcom Powder, Herbal Tea, Herbal Shampoo from the manufacturer : Jeeva Nepal

4. CURRENT POSITIONING OF THE COMPANY Cause of PESTLE Effect Company’s growth was affected by the political transformation in Nepal Currently, the Channel has grown in size being at the other geographical locations : Biratnagar, Itahari, Dharan, Damak, Birtamode, Dhankuta, Illam Each Channel Office comprising of , Manager Tour Manager Trainer Sales Agents

5. CHANNEL STRUCTURE Of Eastern Region , Nepal Manufacturer Head Office: Distributor, Biratnagar Regional : Sunsari Regional: Mechi Regional: Hilly Itahari Dharan Damak Birtamode Dhankuta Illam

6. CHANNEL FUNCTIONALITY Sole Supplier Distribution : Jeeva, Nepal The products are supplied to each of the distribution from the Head office distributor in Biratnagar Under each region, there at the most 7 places ( including cities and sub-urban places) assigned for sales. No overlapping Sales Mechanism thus avoiding the Conflict of Operation Sales Agents are School Passing qualified personnel , training is given by the Trainer on aspects as, Negotiation Skill Sales Skill The action of Sales force is assisted by the advertising from HQ and Regional Office.

7. CHANNEL FINANCIAL ASPECT Cost borne by each level, Head office – Logistics cost upto the Zonal Level , Advertising Cost Regional office – Advertising Cost, Infrastructure cost upto the Zonal level Zonal office – HR cost, Sales tour Cost Final Price of sale from Sales Agent ________________ Say, Manufacturer Set Price to HQ = NRs.100/- Manufacturer keeps 40% margin, thus new price = NRs.140/- Regional Office keeps 30% margin, thus new price = NRs. 170/- Zonal office keeps 20% margin, thus new price = NRs.190/- Each Sales Agent is gen 5% margin, thus new price = NRs.195/- Final Price of sale from Sales Agent ___NRs 195/-__________ NRs. Implies Nepali Rupee, only domestic market operation of the company, 1USD = NRs.76.7 as of 5 th july 2009.The above price is of per unit.

8. CHALLENGES High Attrition Rate of Sales Agent PESTLE problem Conflicts at the Zonal level of Operation Logistics Problem : Koshi Flood in June 2007 Flow of information from Sales Agent to HQ for the product development as customer desired is not properly communicated

9. FUTURE LOOK THROUGH … HQ is considering to launch Weekly News Paper to bring out the elasticity approach to establish in PR and for the product sales.

10. GEOGRAPHY OF NEPAL

11. REFERENCES Nepal’s Map : www.himalayanjava.com/map.html