A Report on

Study of distribution channel

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

Distribution channels are behind every product and service that consumers and Business buyers purchase everywhere. Usually, combination on institutions specializing in manufacturing, wholesaling, retailing and many other areas join force in Distribution channels. Distributions channels are a set of inter dependent organization involved in the Process of making a product or service available for use or consumption. Distribution channels decisions play a role of strategic importance in the overall Presence and success a company enjoys in the market palace. This project report entitled a study on distribution channel with special Reference to IBEX PRODUCT PVT LTD, Chennai. To determine the dealer satisfaction of the product and future demands, needs, wants. The study starts with an introduction of the distribution channel, company Profile, important of the study, review of literature and objectives are set out for the Study. Research methodology, data analysis and interpretation, findings and suggestions Of the study follow. The response given by the dealers and analyzed and interpret using different Types of statistical tool such as percentage analysis, chi-square method.

INDEX
CHAPTER

TITLE INTRODUCTION 1.1 IMPORTANT OF THE STUDY OBJECTIVE RESEARCH METHODOLOGY

PAGE NO.

1 2 3 4 5 6 7 8 9

DATA ANALYSIS AND INTERPRETATION FINDINGS OF THE STUDY SUGGESTION LIMITATIONS OF THE STUDY SCOPE OF THE FURTHER STUDY ANNEXURE

CHAPTER I INDRODUCTION
Place, Distribution, Channel, or Intermediary. A channel of distribution comprises a set of institutions which perform all of the activities utilized to move a product and its title from production to consumption. Bucklin - Theory of Distribution Channel Structure (1966) Another element of Neil H.Borden's Marketing Mix is Place. Place is also known as channel, distribution, or intermediary. It is the mechanism through which goods and/or services are moved from the manufacturer/ service provider to the user or consumer. There are six basic 'channel' decisions: Do we use direct or indirect channels? (e.g. 'direct' to a consumer, 'indirect' via a wholesaler) Single or multiple channels Cumulative length of the multiple channels Types of intermediary (see later)

Number of intermediaries at each level (e.g. how many retailers in Southern Spain). Which companies as intermediaries to avoid 'intrachannel conflict' (i.e. infighting between local distributors)

 Selection Consideration - how do we decide upon a distributor? Market segment - the distributor must be familiar with your target Consumer and segment. Changes during the product life cycle - different channels can be Exploited at different points in the PLC e.g. Foldaway scooters are Now available everywhere. Once they were sold via a few specific Stores.

Producer - distributor fit - Is there a match between their polices, Strategies, image, and yours? Look for 'synergy'. Qualification assessment - establish the experience and track record of Your intermediary. How much training and support will your distributor require? Types of Channel Intermediaries. There are many types of intermediaries such as wholesalers, agents, retailers, the Internet, overseas distributors, direct marketing (from manufacturer to use without an intermediary), and many others. The main modes of Distribution will be looked at in more detail. 1. Channel Intermediaries Wholesalers
They break down 'bulk' into smaller packages for resale by a retailer. They buy from producers and resell to retailers. They take ownership or 'Title' to goods whereas agents do not (see below). They provide storage facilities. For example, cheese manufacturers seldom wait for their product to mature. They sell on to a wholesaler that will store it and eventually resell to a retailer.

Wholesalers offer reduce the physical contact cost between the producer and consumer e.g. customer service costs, or sales force costs. A wholesaler will often take on the some of the marketing responsibilities. Many produce their own brochures and use their own telesales operations.

2. Channel Intermediaries Agents Agents are mainly used in international markets. An agent will typically secure an order for a producer and will take a Commission. They do not tend to take title to the goods. This means that Capital is not tied up in goods. However, a 'stockiest agent' will hold consignment stock (i.e. will store the stock, but the title will remain with. The producer. This approach is used where goods need to get into a market soon after the order is placed e.g. foodstuffs). Agents can be very expensive to train. They are difficult to keep control of due to the physical distances involved. They are difficult to motivate.

3. Channel Intermediaries Retailers Retailers will have a much stronger personal relationship with the Consumer. The retailer will hold several other brands and products. A consumer will expect to be exposed to many products. Retailers will often offer credit to the customer e.g. electrical wholesalers, or travel agents. Products and services are promoted and merchandised by the retailer. The retailer will give the final selling price to the product. Retailers often have a strong 'brand' themselves e.g. Ross and Wall-Mart In the USA, and Lisper, Modulo, and Jumbo in Portugal.

4. Channel Intermediaries Internet The Internet has a geographically disperse market. The main benefit of the Internet is that niche products reach a wider Audience e.g. Scottish Salmon direct from an Inverness fishery. There are low barriers low barriers to entry as set up costs are low. Use e-commerce technology (for payment, shopping software, etc)

There is a paradigm shift in commerce and consumption which benefits distribution via the Internet

1.1 IMPORTANTS OF THE STUDY The study is very significant to understand the distribution channels. The study is important to know the dealers satisfaction level for the dealership. The study is important to know the dealers satisfaction level in the price of the corroborators parts. The study is important to know the dealers preference for the quality. The study is very important to know the sales volume. The study is also analyses the effective media for improving the sales. The study is important to know availability of the product. The study is important to know margins in the automobile industries.

1.2

COMPANY PROFILE

Ibex products

IBEX GROUP: Corporate Headquarters: Raheja Towers, 7th Floor, Sigma Wing, 177 Anna Salai, Chennai- 600 002 Tamil Nadu, India. Ph. No : +91- 44 28601610/42009544 Website: www.ibexproducts.com

GROUP COMPANIES IBEX PRODUCTS PRIVATE LIMITED Plant 1 (Vacuum Impregnation, Shot blasting & Fettling) Plant 2 (Anodizing, Driloc Coating, Electroplating) Plant 3 (Copper brazing) Plant 4 (Precision Drilling & Machining) Plant 5 (Die Casting division) L.M.ENGINEERING ENTERPRISES PRIVATE LIMITED K.L.SCIENTECH PLATERS PRIVATE LIMITED INTRODUCTION: 1. INTR IBEX Group specializes in Die Casting and special process services to the automotive industry 2. Scope of processes at IBEX High Pressure Die Casting, Vacuum Impregnation, Fettling, Shotblasting, Anodizing, Driloc Coating, Electroplating, Copper Brazing, precision Drilling, Machining and SubAssemblies 3. Our products and Services are applied in 2-wheeler carburettors and multipoint injection systems in 4-wheelers. 4. End customers are OEM like Maruti, Hyundai, Bajaj, Hero Honda, TVS etc. through our immediate customers. 5. 5 Plants under IBEX Products and 2 group companies involved in plating and machining 6. All of our plants and group companies are ISO 9001:2008 certified and are members of ACMA.

SPECIALIZATION PLANT 1 1. Vacuum Impregnation 2. Fettling & Shotblasting (Aluminium) PLANT - 2 1. Anodizing & Driloc Coating 2. Zinc Nickel Electroplating PLANT - 3 1. Copper Brazing & Sub Assembly PLANT 4 1. Precision Drilling PLANT - 5 1. High Pressure Die Casting (Aluminium) 2. Fettling & Shotblasting (Aluminium) 3. CNC Machines added very soon.

CUSTOMERS: UCAL fuel systems ltd o (Plant-1 (MM Nagar), Plant-2 Pondicherry), Plant-3 (Gurgaon), Plant-7 (MM Nagar), Plant-8 (MM Nagar EOU) TAKATA India Ltd. RANE (Madras) Ltd. Gates Unitta India Company Ltd. Pricol Ltd (Coimbatore). Precialp Precision India Pvt Ltd. Delphi TVS Diesel Systems Automotive Ancillary Services IHD Industries Private Limited Real Talent Engineers Private Limited Annai Thread Tools Bright Engineers Flow Well Auto Castings SIDD Life Sciences VIAT Instruments (Kolkata) K K Precision. MidTown Manufacturing India Pvt Ltd MILESTONES: Established Fettling, Shotblasting, Machining, Assembly operations in the year 1998 in previous group company Ucal El-Tech.

 Established Vacuum Impregnation operations at o Plant I in the year 1999. Established Anodising operations at Plant II in the year 2000. Established Copper Brazing Operations at Plant III in the year 2000. The plant is currently operating with resounding success and all-around praise from customers for quality. Certified to ISO 9001:2000 standards by Bureau Veritas in the year 2002. Shifted Fettling, Shotblasting, Machining, Assembly operations from Ucal El-Tech to Plant 1 in the year 2007. Established Electroplating operations at Plant II in the year 2008. Upgraded our Quality Management System to ISO 9001:2008 standards and got certified in the year 2009. Shifted Precision Drilling operations to Plant IV in the year 2010. Established High Pressure Die Casting at Plant I in the year 2010. Shifted PDC operations to Plant V in the year 2011. Expanded PDC operations in Plant V and introduced machining in Plant V in the year 2012.

EMPLOYEES: 1. 2. 3. 500-strong young, dynamic workforce with multiple skills Average age: 20-35 years IBEX management strongly emphasizes on personal growth of employees and is committed to building leadership skills, teamwork and positivity among the staff and workforce.

NEWLY ESTABLISHED SPRAWLING DIE CASTING DIVISION FACILITIES : PLANT- 5 Spread over an area of 1.25 acres, the new plant is extremely spacious and can accommodate our robust expansion plans very easily. 350 Ton -3 Nos Toshiba fully automated High Pressure machines Die Casting

Horizontal Injection Type Cold Chamber Die Casting Machines 180 Ton 1 No. 120 Ton 2 Nos. Completely integrated setup including trimming, fettling and shot blasting activities Hydro pneumatic Presses ( for trimming) Shot blasting machines (Tumblast & Hanger Type) SPMs for machining of casting in house. Degassing Equipment Well-equipped PML PRODUCTS: PLANT- 5 Die Casting trimming, surface finishing and machining various Models of: Air Suction Valve Piston Cooling Nozzle Diaphragm Cover Bowl Castings PAE Housing

 PAE Gear Box Case Steering Housing Tensioner Arm & Base Mixing Bodies BS K2 C9 Spool. OUR NEWLY ESTABLISHED SPRAWLING DIECASTING DIVISION: QUALITY P.M.L FACILITIES Well-equipped PML with Advanced CMM-Mitutoyo Spectrometer- Metavision Profile projector- ARCS Taiwan. Hardness tester. Height Master-Mitutoyo. Hydrogen Determination Tester. o K Mould FACILITIES TO BE ADDED VERY SOON : PLANT- 5 Machining centers are to be added to the scope of activities of Plant 5 very soon. Newer PDC machines of varying tonnages will also be added to the plant very soon. OUR PROUD VENTURE IMPREGNATION FACILITIES PLANT- 1

1. Vacuum Impregnation setup 2. Fettling & Shotblasting Shotblasting Machines (Tumblast & Hanger Type) PRODUCTS: PLANT- 1 Die Casting trimming, surface finishing and various Models of: Air Suction Valve Piston Cooling Nozzle Vacuum Cover Bowl Castings Delivery Pipes Throttle Valves Mixing Bodies FACILITIES: PLANT- 2 1. Anodizing Plant (Hard & Super Hard Anodizing) 2. New Zinc Plating 3. Zinc Nickel Plating 4. Electro Plating Setup 5. Salt Spray Chamber PRODUCTS NAME PLANT- 2 VARIOUS MODELS OF

 Piston Valves Heat Exchanger Rods Pump Body & Cover Case Complete Assembly Actuator parts PLATING PRODUCTS

FACILITIES: PLANT- 3 1. Continuous conveyor atmospheric brazing furnaces 2. Pneumatic presses 3. Projection welding machine 4. Automat lathe 5. Capstan lathe

BRAZING PROCESS:

PRODUCTS NAME

PLANT- 3: Various Models of Fuel Filter Body Fuel Filter Cover Case Complete Assembly Inlet & Outlet Port Diaphragm Cover Tube Assembly Actuator Parts BRAZING PRODUCTS

FACILITIES: PLANT- 4 1. General Purpose Drilling Machines 2. High Speed Drilling Machines PRODUCTS: PLANT- 4 Various Models of Pilot Jets

 Starter Pipe Jet Holder QUALITY COMMITMENT: QUALITY POLICY IBEX Products Private Limited is committed to maintain a Quality Management System to INTERNATIONAL STANDARDS and to continually improve the performance to satisfy the customer.

Certified to ISO 9001 : 2000 since year 2002. Upgraded to ISO 9001 : 2008 since year 2009. BUSINESS: 1. LM Engineering Enterprises was established in 1990.

2. At LM Engineering, we manufacture automobile ancillary parts. 3. The unit specializes in production and supply of machined parts, subassemblies and formed parts for automobile applications. 4. Certified by BVQI for ISO 9002: 1994 in the year 1997; QS 9000: 1998 in the year 2002 and ISO 9001: 2008 in the year 2009.

FACILITIES: 1. 2. 3. 4. 5. Drilling machines & Tapping machines Special Purpose Machines for machining Belt Linisher Leak Test Equipment Toggle Presses

6. 7. 8. 9.

Orbital Riveting Machines Centre less Grinding Machine Lathe Machine Precision drilling Machines from 0.30 mm drilling

10. Auto Lathe 11. Capstan Lathe 12. Pneumatic & Mechanical Presses QUALITY COMMITMENT: QUALITY POLICY L.M. Engineering Enterprises Pvt. Limited will continue to achieve and enhance customer satisfaction by maintaining an effective Quality Management System focussing on Continual Improvement. Certified to ISO 9001 : 2008 BUSINESS K.L.Scientech Platers Pvt Ltd specializes in protective coating by providing Zinc plating with trivalent / hexavalent passivation of ferrous components, Chromating of Zinc and aluminium castings as per customer specifications . FACILITIES: 1. Aluminium Chromating setup.

2. Zinc Chromating setup. 3. Zinc Plating with passivation setup. 4. VAT Plating, Barrel Plating, Effluent Treatment Plant & RO system for zero discharge of effluents. QUALITY COMMITMENT:

QUALITY POLICY K.L.Scientech Platers Private Limited is committed to maintain a Quality Management System to International Standards and to continually improve the performance to satisfy the customer. Certified to ISO 9001 : 2008

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES: To find out the distribution channels of IBEX PRODUCT PVT LTD, Chennai. To compare the distribution system of Birla cement with other cements. SECONDARY OBJECTIVES: To find out the advertisement efficiency of IBEX PRODUCT PVT LTD, Chennai. To find out the marketing situations of IBEX PRODUCT PVT LTD, Chennai from others. To find out the present problems faced by dealers. To find out the any new scheme required by the dealers.

To give valuable suggestions to the company for increase the sales volume

RESEARH METHODOLOGY Pilot study tells about the completeness, accuracy convenience of the Sampling from which it is proposed to select the sample. 4.1 RESEARCH DESIGN: On analysis the condition the researcher found that descriptive research Design is appropriate for the research for the study. DESCRIPTIVE RESEARCH: Descriptive research includes surveys and fact-finding enquiries of Different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. In social science and business research we quite often use the term Ex post facto research for descriptive research studies. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happening. 4.2 PRE-TEST: The researcher tested the questionnaire with Hundred respondents chosen from different consumer at random and checked whether this questionnaire was understandable. 4.3 SAMPLING TECHNIQUES: The researchers select the judgment sampling model for his researcher Work. 4.4 SAMPLE SIZE: The researcher selected the 100 respondents for the present study in Chennai city. 4.5 DATA COLLECTION TECHNIQUES The researcher used a Questionnaire, which was self developed after having Session of discussion with marketing manager. The statistical techniques such as On the way of analysis of various chi-squares were applied to draw meaningful.

 FINDINGS OF THE STUDY

(26%) of the respondents are having Chettinadu cement dealership. And 16% of respondents are having Birla cement dealership. (26%) of the respondents feel that Chettinadu cement is having high sales volume. At the same time Birla cement is having less sales volume. (26%) Chettinadu cement most valuable suppliers from dealers point of view. And Birla cement (16%) of respondents is considering most valuable suppliers. (92%) of the respondents feel that quality of the product is excellent. And (8%) of the respondents feel that quality is poor. (14%) of the respondents satisfied with price of the products. And (86%) Of the respondents not satisfied with price of the products. (26%) Chettinadu cement and (26%) Dalmia cement they are moving fast in cement industry. And (12%) Birla cement is moving slowly. (6%) of the respondents feel that order and replacement is highly satisfied. And (62%) of the respondents feel that average. (28%) of the respondents highly satisfied with availability of the product. And (10%) of the respondents not satisfied. (12%) of the respondents satisfied with margins offered by the product. And (68%) of the respondents feel that margins of the product is average. (62%) of the respondents satisfied with Birla cement dealership. And (38%) of the respondents not satisfied.

SUGGETION
Birla cement should concentrate in credit facility of the dealers. Fixed the standard price of the product Birla cement should concentrate on sales man visit for wide marketing. Birla cement should concentrate to attract the dealers. Birla cement should improve their sales promotional efforts. Birla cement does a market research and gets feedback. Birla cement should concentrate to give incentives to the sub-dealers also.

Birla cement should concentrate to fulfill the service for dealers required.

LIMITATION OF THE STUDY

One of the important of the study was lack of time. Though the respondent to the study was vast due to the time constraints the sample size was limited. The researcher has difficulty with most of the respondents who was not willing to cooperate with the study, as they were very busy with their work. The research had also difficulty in getting some information, which the respondents were not interested to give. The researcher had difficulty with the respondents because they did not fill up the questionnaire in proper time. Another limitation of the study was confined with not only retailers but also consumers for survey of this study.

SCOPE OF THE FURTHER STUDY The scope of the study is confirmed to distribution channel with special reference to the BIRLA CEMENT in Thiruvarur district. The study can help to the management to know the factors why their sales volumes are low. The study will help to improve the sales volumes of the BIRLACEMENT

The recommendation and suggestion of the study can also be applied to the similar project or similar situation

CONCLUSION
After analysis the data we have concluded that Chettinadu cement, Sankar cement, and Dalmia cement they are captured first three place and Birla cement is in fourth place. Because the sales volume of the Birla cement is very low compare than others and the aware of the Birla cement is very less in Thiruvarur dist. Moreover Birla cement has limited dealership with dealers. So automatically there is lack of availability creates. Therefore Birla cement has to improve its sales promotional efforts as well as follow some strategies through effective market research and get feedback from their consumers and customers(dealers).And give more advertisement so that move powerful than others and fixed the standard price. At the same time quality (life time of the cement) delivery time of the Birla cement is good. IN SIMPLE WORDS BIRLA CEMENT IS UNDER DEVELOPING STAGE IN THIRUVARUR
DIST

ANNEXURE
A STUDY ON DISTRIBUTION CHANNELS SURVEY WITH SPECIAL REFERENCE TO BIRLA CEMENT IN THIRUVARUR DISTRICT

QUESTIONNAIRE
1. Name : 2. Age : 3. Education qualification : 4. Address : 5. What are the cement dealership do you have? a. Ramco b. Chettinadu c. Sankar d. Birla e. Dalmia 6. Which company gets high sales volume in cement industry? a. Ramco b. Chettinadu c. Sankar d. Birla e. Dalmia
7. What is your opinion about the quality of birla cement? a. Excellent b. Very good c. Good d. Average

e. Poor 8. Which is the fast moving brand in your town? a. Ramco b. Chettinadu c. Sankar d. Birla

e. Dalmia . 9. Please rate the availability of birla cement? A. Highly satisfied B. Satisfied C. Average D. Dissatisfied E. Highly dissatisfied 10. Are you satisfied with the margins offered by birla cement? A. Highly satisfied B. Satisfied C. Average D. Dissatisfied E. Highly dissatisfied 11. Do you satisfied to take the birla cement dealership? A. Yes B. No 12. Please mention advertisement offered by birla Cement? A. Too high B. High C. Moderate D. Low E. Too low 13. Please mention sales promotional efforts of the birla Cement? A. Excellent B. Very good C. Good D. Average E. Poor

BIBLIOGRAPHY
BOOKS 1. Marketing Management Philip Kotler [PRENTICE HALL OF INDIA PVT, LTD NEW DELHI-110001, 2003.] 11th EDITION 2. Research Methodology C.R.Kothari [NEW AGE INTERNATIONAL(P)LIMITED,HYDERABAD]2ND EDITION. 3. Marketing Dr N. Rajan and sanjith.R.Nair[SULTAN CHAND&SONS Daryaganj New Delhi-110002,1987]6th EDITION. 4. Marketing Management S.A.Sherleker[PRENTICE HALL OF INDIA PVT,LTD NEW DELHI-110001,2003.] 1stEDITION INTERNET: www.google.com www.grasim.com www.birla.com