RIFY VALLEY UNIVERSITY

FACULITY OF BUSINESS AND SOCIAL SCIENCE

DEPARTMENT OF BUSINESS MANAGMENT

ASSESEMENT OF PRODUCT DISTRIBUTION STRATEGY PRACTICES

(A CASE STUDY ON CHILALO FOOD COMPLEX

PREPARED BY:
NEBIYAT AHMED
HAMZA ADEM
SISAY MULUGETA
EMAN NURI
MUNIK ESHETU

A RESEARCH PAPER SUBMITTED TO THE DEPARTMENT OF BUSINESS

MANAGEMENT FOR PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR BA
DEGREE IN BUSINESS MANAGEMENT.

ADVISOR: Mesfin M.

JULY, 2024
Adama, Ethiopia
 Acknowledgement
First of all, we would like to thank the almighty God for helping us with the endurance of doing
through all ups and downs to reach the stage where we are now.
Also, we would like to express our great appreciation to our advisor for the genuine advice, guidance,
constructive criticism and all sided contribution to the successful accomplishment of this proposal.
Finally, we would like to thank our family.
Table of Contents
CHAPTER ONE......................................................................................................................................5
INTRODUCTION...................................................................................................................................5
1.1 Background of the Study...............................................................................................................5
1.2 Statement of the Problem...............................................................................................................6
1.3 Basic Research Question...............................................................................................................6
1.4 Objective of the Study...................................................................................................................7
1.4.1 General Objective.......................................................................................................................7
1.4.2 Specific Objective.......................................................................................................................7
1.5 Significance of The Study.............................................................................................................7
CHAPTER TWO.....................................................................................................................................8
REVIEW OF RELATED LITERATURE...............................................................................................8
2.1 An Overview of Distribution.........................................................................................................8
2.1.1 Definition of Physical Distribution.............................................................................................8
2.2 The Elements of Physical Distribution..........................................................................................8
2.2.1Transportation..............................................................................................................................9
2.2.2 Risk Management in Transportation..........................................................................................9
2.2.3 Functions and Principle of Transportation...............................................................................10
2.2.4 Fundamental Factors of Transportation....................................................................................10
2.2.5 Advantages of Transportation...................................................................................................11
2.2.5.1 Function Of Transportation...................................................................................................11
2.2.5.2 Economic Significance Of Transportation............................................................................12
2.2.5.3 Modes Of Transportation.......................................................................................................13
2.2.5.4 Element Of Transportation Cost............................................................................................13
2.2.5.5 Inventory Management..........................................................................................................14
2.2.6 Warehousing.............................................................................................................................15
2.2.7 Material Handling.....................................................................................................................16
2.2.8 Packaging..................................................................................................................................17
2.2.9 Customer Service......................................................................................................................17
2.2.10 Importance Of Distribution Channels.....................................................................................17
2.3 Channel Structure and Function..................................................................................................18
2.4 Setting and Coordinating Distributions Objectives.....................................................................19
2.5 Developing possible alternative channel.....................................................................................19
2.6 Apply Selection Criteria..............................................................................................................19
2.7 Distribution Channel Strategy.....................................................................................................20
2.8 Recognizing the Needs for A Channel Design............................................................................20
 2.9 An Intermediaries Necessary.......................................................................................................20
2.10 Types of Intermediaries.............................................................................................................23
2.11 Product Impact on Marketing Channel Design.........................................................................24
2.11 Empirical Literature...................................................................................................................25
CHAPTER THREE...............................................................................................................................27
RESEARCH METHODOLOGY..........................................................................................................27
3.1 Research Design..........................................................................................................................27
3.2 Research Approach......................................................................................................................27
3.3 Types of data and source of data.................................................................................................27
3.4 Data sampling and Study Area....................................................................................................27
3.5 Method of Data Collection Instrument........................................................................................27
3.6 Method of Data Analysis and Presentation.................................................................................27
CHAPTER FOUR.................................................................................................................................28
DATA PRESENTATION, ANALYSIS AND INTERPRETATION...................................................28
4.1 General Characteristics of the Respondents................................................................................28
4.2 Analysis of Major Findings.........................................................................................................29
4.3 Analysis of Finding of the Study.................................................................................................29
4.4 The Interview Question for Marketing Manager.........................................................................35
CHAPTER FIVE...................................................................................................................................36
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS.........................................................36
5.1. Summary of Major Finding........................................................................................................36
5.2. Conclusions.................................................................................................................................37
5.3. Recommendations.......................................................................................................................38
REFERENCE....................................................................................................................................39
 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Production is the creation of goods and services and these goods and services can be produced in
factories or industries and stored in warehouses. However, production cannot to be said to be
complete until the products/services get to end user or consumer. This can be obtained through the
distribution process and that completes the production cycle. One of the components of marketing mix
is the task of transferring product from production place to purchase place for the customer, thus the
main task of distribution management is placing goods in the hands of potential customers at the right
time and place (Roosta et al. 2009). Distribution channels can be described by the number of channels
involves. A layer of intermediaries that perform some work in bringing the product and its ownership
closer to buyer is channel level (Kotler, 2004).
Any organization to be effective there should be effective distribution management process to convey
finished products from the manufacturer to the final consumers. This is because without having
standardized distributor the best product will not be delivered and the marketing mix will break down
and fail (Ferguson 2000).therefore, marketers have to think of special plans and ways in which they
can attract consumers towards their products even at the time of normal economic circumstances or at
the time of boom in the economy. Therefore, at the time of recession, the difficulties increase even
more. As we all have seen or heard about the most recent recession that has affected the world
economy really badly, it became difficult for many industries to survive. In the theory of marketing
mix, place (distribution) determines where the product will be sold and how it will get there (kotler,
2000). Griffith and Ryan (1996) hold that distribution channels evolved through the utilization of
national resources contained within an area of trade. The need to move the resources to other areas
where they were in demand brought about the need for distribution channels. 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.
Khanna, (2002; 14). States that physical distribution refers to the broad range of activities that include
the movement of raw materials from the source of supply to the beginning of product line as well as
the movement finished products from the end of production line to the customer. Hence, be it the
movement of raw material or that of finished products, from the above definition, it is clear that
physical distribution plays key roles in the process of production and provision. It must be noted that
it is the planning, organizing, and controlling of all movement activities that facilitate product flow
point of final consumption (Khanna, 2002; 15).
Consumers today are more environmentally conscious than ever. However, it has been found that
there is a gap between the consumer’s intention and actual purchase when it comes to products that
there is a social pressure to buy for environmental reasons. The potential for the socially desirable
segment is estimated to have potential, but growth seems to be slow.
According to gupta ( 1999), the channel of distribution can broadly be divided in to two categories
direct and indirect channel under direct channel of distribution, manufacturer directly sells to the
consumer without middlemen, whereas, under indirect channel of distribution , producers sell through
various middle men like agent, retailers and wholesaler. Online with this above channel category
Kotler and Armstrong (2006) have also identified three major types of intermediaries or channel
alternative namely company sales force, agency, manufactures and industrial distributor.
Chilalo food complex was established in 2008 with starting capital of 2800000 birr in Oromia region
asella town, now a day the company has 1500 permanent and 500 seasonal employees. The factory
has, 5 biscuit production lines with a total capacity of 1350 quintals per day, these lines produce
different portfolios of more than 26 types. Most of all the workers showed great commitment and
dedication to keep the product popular one way to initiate the study of management in marketing
channels is to identify reasons or motivations that causes business to seek establishment of
distribution arrangements.
Therefore, focusing on the company under question, identifying presently existing challenges that
hinder its physical distribution from beginning consistent, was what we dealt with in this study.
1.2 Statement of the Problem
The question most asked by management is when to revise the firm’s products distribution strategy.
Existing strategies can become out dated even if they are continuously undergoing improvement.
Substantial changes in the following factors may indicate a need for strategy revision on demand,
customer service, product characteristics distribution costs and pricing policy.
In this increasingly busy world, being on time serves a great deal to save time by meeting the
temporal needs of people so that they can go on engaging in activities in accordance with their
calculated plan. Analogously, if a company, like chilalo food complex, is able to meet the temporal
needs of its customers by modifying the quality of its order processing and it is
On time delivery of products, it can be inferred that it has an excellent quality of physical distribution,
so that it will not be blamed for preventing customers from being in tune with their plan of action.
Therefore, it must be noted that physical distribution has a great impact on the timeliness both in the
processing and delivery of products.
Different scholars give almost identical description on physical distribution. For instance, Khanna,
( 2005:15), states that physical distribution refers to the distribution of materials in line with such
activities as freight transportation, warehousing, material handling, protective package, inventory
control, plant and warehouse site selection, order processing, market forecasting and customer
service.
The other author Sherleker, (2004:417) generally, classified distribution as physical distribution,
which includes - order processing, transportation, warehousing, inventory management, material
handling, package and customer service and channel member include wholesaler, agent and retailers.
Therefore, it is obvious that if one of the activities related to physical distribution is not properly
performed; it will have a negative impact on the quality of physical distribution of the company,
which in turn minimizes timeliness of the company in meeting the needs of customer’s punctuality.
In this regard, when coming to the company under study, the researchers could have some information
on the quality of physical distribution of the company through preliminary observation and informal
discussion with customer and regional sales manager. And from the preliminary observation and
informal discussion with customers and sales manager, the student researchers could identify the lack
consistency of punctuality in the case of both orders processing and delivering of products to
customers.
Therefore, according to the above detail the researchers’ assessed the physical distribution strategies
of the company.
1.3 Basic Research Question
1. What is the nature of product distribution channels of the company?
2. What problems do occur during the practice of product distribution?
3. To what extent does the company goes for selecting distribution channel?
1.4 Objective of the Study
1.4.1 General Objective
The general objective of the study was to assess the product distribution strategy practices of chilalo
food complex.
1.4.2 Specific Objective
Specific objectives that have to be addressed in the study

 To identify the nature of distribution channel which used by the company

 To interpret the problems during the practice of product distribution
 To identify to what extent that the company goes for selecting distribution channels
1.5 Significance of The Study
This study may help the company management to redirect their attention to this high essential product
distribution strategy and it will also help the company to look at its problems, redirect their attention
and take alternative consideration about how product distributes and their significance in the industry,
along with its primary intention required as a senior essay for the prospective graduate student
researchers, the paper will also serve as a reference materials for similar studies in the future. The
student researchers in conducting the study will benefit a lot in conducting the research.
1.6 Limitation of The Study
As the student researchers we have been facing different challenges while conducted this study. Some
of this are luck of willingness from business customers to give information, unreturned the questioner
on time, and the same as time of the interview the marketing manager of the company unreturned the
interview on time.
1.7 Organization of The Study
This paper has five chapters. The introduction part is the first chapter of the study which composed of
background of the study, statement of the problem, objective of the study, research questions
significance of the study, scope of the study and operational terms of the study. The second chapter
deals with review of both theoretical and empirical literatures related to the study and conceptual
framework of the study. The third chapter deals with research methodology which is about approaches
of the study, design of the research, source of data, variable specification, and model specifications.
The fourth chapter presents the result and discussion part. The final part is about the conclusion and
recommendation.
 CHAPTER TWO

REVIEW OF RELATED LITERATURE

2.1 An Overview of Distribution

Distribution is the delivery of product at the right time and at the right place. The distribution mix is
also a combination of decision related to marketing channels, storage facility, inventory control,
location, transportation, warehousing etc. ( Pillai and Baguathi, 2005 : 24)
According to Havaldar and Cavale (2007:1:14) defined distribution management as the primary
function of ensuring that the product or services is made available to the consumer with in an arm’s
length of this desire, takes care of the availability ( physical distributions, and the utility) It provides
time: and procession utility to the consumer.
A distribution channel is a group of people and firms involved in the transfer of title or ownership as
the product moves from the producer to the ultimate consumer. The American marketing association
describes a distribution channel as the structure of infra company organization units and extra
company agents, dealers, wholesalers and retailers through which a commodity , Product or service is
marketed ( K.Havaldar an vasant M Cavala, 2007 : 8:15) users, between them stands a set of
intermediaries performing a verity of function. These intermediaries constitute a marketing channel
( also called a trade channel or distribution channel). Formally, marketing channels are sets of
interdependent organizations involved in the process of marketing a product or service available for
use or consumption.
2.1.1 Definition of Physical Distribution
According to Khanna, (2002) describe physical distribution as an art and science of determining
requirement, acquiring them, distributing them and maintaining them in an operationally ready
condition for their entire life.
Other author Shelkers, (2003) explain physical distribution as a marketing activity relating to the flow
of raw materials from the suppliers to the factory and movement of finished goods from the end
production line to the final consumer or ultimate user.
Marketing agencies such as dealers, merchants and mercantile agents manage the flow of goods and
perform the function of physical supply- right up to consumer’s homes and stores.
To support of this Havalder and Caval, (2002) also define physical distribution as a system which
involves the actual movement of goods and services from the shop floor to the ultimate consumer.
Therefore, from the above definitions we can derive a general definition for physical distribution that
it’s an art and science of determining requirements, acquiring them distributing and maintaining them
in an operationally ready condition, which in other words means that it’s a system in marketing
activities involving the actual movement of goods and services from the production center to the
ultimate consumer.
2.2 The Elements of Physical Distribution
As an integrated management activity physical distribution consists of various activates. There are six
components of physical distribution efficiency in these components can lead to reduction of total cost
of the firm. The choice of the right combination of the physical distribution element is one of the best
tools used by marketers to satisfy their customer. This component includes; transportation,
warehousing, material handling, protective packaging, inventory management, order processing, and
customer service.
2.2.1Transportation
It’s an essential and one of the most important components of physical distribution. According to
Data, (2003) define transportation” it’s given a brooder interpretation in the sense that it means the
management of the movement of goods and materials thorough space and time from their original
source to the ultimate destination.
Historically speaking, transportation has been the foundation stone on which electronic growth of a
nation rests. With the advent of large-scale production or distribution systems, transportation has
always exerted tremendous impact on the supporting activities which are associated with the
production and marketing of goods, and general economic activity.
And also, Havalder and Caval, (2007) discuss transportation is an equally important part of the
logistics function. Movement of the products across space or distance add value to the product as it
gets them nearer to the points of consumption and the distribution network or final users. It really
provides the “time” and “place” utility, which is the primary function of the physical distribution
system. Transportation or fright is one of the largest elements in the logistics costs and a significantly
influence the final selling price of the product and its profitability.
The other author Chopra says, (2007) “it refers to the movement of product from one location to
another as it makes its way from the beginning of supply chain to the customer. It’s an important
supply chain driver because products are rarely produced and consumed in the same location”.
Transportation is a significant component of the costs incurred by most supply chains. To understand
transportation in a supply chain it’s important to consider the perspective of all four parties.
A carrier maker’s investment decisions regarding the transportation equipment (locomotives, trucks,
airplanes, etc.) and in some cases infrastructure (rail), and then makes operating decision to try to
maximize the return from these assets. A shipper, in contrast, uses transportation to minimize the total
cost (transportation, inventory, information, sourcing, and facility) while providing an appropriate
level of responsiveness to the customer. We can think of a transportation network as a collection of
nodes and links.
Transportation originates and ends at nodes and travels on links. For most modes of transportation,
infrastructure such as ports, roads, waterways, and airports are required both at the nodes and links.
Most transportation infrastructure is owned and managed as a public good thought the world. It’s very
important that infrastructure be managed in such a way that monies are available for maintenance and
investment in further capacity as needed. Transportation policy sets direction for the amount of
national resources that into improving transportation infrastructure. Transportation policy also aims to
prevent abuse of monopoly power, promote fair competition, and balance environmental, energy, and
social concerns in transportation. In the next section I am discuss different modes of transportation
and their cost and performance characteristics.
2.2.2 Risk Management in Transportation
According to Data A.K, (2003) discuss as the three main types risk considering when transporting a
shipment between two nodes on the network.

 The risk that the shipment is delayed

 The risk that the shipment doesn’t reach its destination because intermediate nodes or links
are disrupted by external forces.
In each case it’s important to identify the sources of risk and their consequences and plan suitable
mitigation strategies.
Delay arises either because of congestion along links such as roads or nodes such as ports and
airports. When congestion is the cause delay, mitigation strategies for the shipper include moving
inventories closer to the destination, using alternative lanes, and building a buffer into the lead time.
Congestion delays can be mitigated by designing a network with multiple routes to the destination and
changing routes based on congestion.
Congestion delay can also be mitigated thorough the use of congestion pricing by the owner on the
transportation node or link. Delay may also arise because of the limited availability of transportation
or infrastructure capacity. Such delays are more likely when the assets are owned by a third party that
is serving multiple customers. These delays may be mitigated by owing some transportation capacity
or signing long term contracts for transportation capacity with the third party. Given the high cost of
owning these assets, it’s best to do so for parts of the network where utilization is high.
Disruption at transportation links or nodes may occur because of natural events such as hurricanes or
manmade events such as terrorism like Somalia hackers. The best mitigation strategies in this case are
to design alternative routings into the transportation network.
When considering both delay and disruption risk, it’s important to identify sources that are likely to
be correlated across the network. For example, the events on September 11, 2001 caused a disruption
in air transportation across the entire United States of America.
Alternative routings were useless as mitigation strategies in this case because no alternative route was
available. For such correlated sources of risk, the only option is to decrease the probability of such a
disruption.
Hazardous material can be harmful when people or the environment is exposed. The goal of risk
mitigation here is to minimize the probability of exposure, and in the event of exposure, to minimize
the impact. Mitigation strategies include the use of modified containers, low risk transportation
modes, selecting routes with low accident probability or reduced population and environmental
exposure, or modification of the physical or chemical properties of the material being transported to
make it less dangerous.
Therefore, it’s important to a company to predict possible factors that may cause risks in
transportation and to create effective and reliable risk mitigation strategies, so that it will be on the
safest side.
2.2.3 Functions and Principle of Transportation
Bowersox and Closs, (2003) pointed out that, transportations provides four major functions; product
movement, storage, economy of scale, and economy distance.
According to these scholars, the stated functions respectively refers to the transportation of materials
to the end user or consumer; the temporary storage of materials; the cost of transportation per
distance; and the cost of transportation per unit weight as the size of the shipment increases.
From the points stated so far, one can understand that such functions and principles of transportation
are basic ideas that a company should follow. Otherwise, if a company conducts its physical
distribution with the efficacy of the above functions and principles of transportation, its harvest will
be customer dissatisfaction.
2.2.4 Fundamental Factors of Transportation
According to Altekar, (2005) explains that, there are three factors which are fundamentals to
transportation performance, i.e. Cost, Speed and Consistency, and also Altekar, describe cost as direct
cost which includes the payment for movement between two geographical locations and expenses
related to administration. And indirect cost of maintaining in transit inventory. And the second factor
as Speed which is the time required completing a specific movement of goods from one place to
another land greater speed would result in lesser time of inventory in transit being unavailable. Hence
the tradeoff is required to be made and balance has to be stock. And the third factor is consistency,
which is refers to the variation in time required to perform a specific movement. Consistency is
reflection of dependability of the transport.
2.2.5 Advantages of Transportation
 It provides time and place utility for the customer; it also supports the company operations
some of the advantages of having a good transportation system by any company are as
follows:-
 It provides greater economies in the scale of production it helps better utilization of capacity
and the production units can be located in sites more sailed for production.
 For providing opportunities for business, it increases the competition among transporters and
this reduces costs associated with transport, inventory, and packaging.
 It provides better customer services; transportation creates the place and time utility as
required either a scheduled date as even in emergencies.
2.2.5.1 Function Of Transportation
To Encouraging Large Scale Production
Conversion of raw materials in to finished products is known and the production of goods. For large-
or small-scale production of goods movement of raw material is essential. Then finished products
must be transported. Transportation of good takes place from the abundant area to the scarce area.
Transport is necessary at every stage of production of good. Transportation existing market and create
new market. It increases the demand for goods. It leads to increase in the production level, thus large-
scale production is possible. Movement of products from one place to another place created place
utility. Transport moves the products in the required from to the required place. It equalizes the
supply.
It Increases the Mobility of Factors of Production
Growth of industries depends on the transport systems the four factors of production (raw material,
labor, capital, and entrepreneur) for essential for development of industries. Its only through
transportation, the mobilization of factors is made possible from one place to other places and from
one country to other countries. It encouraged migration of people and movement of labor and capital.
Quick a reliable means of transport is essential for the industries which produce perishable
commodities like products, fruits, meat, poultry etc. thus it creates time utility.
It Encourages of Specialization and Division of Labor
Transport facilitates regional and geographical concentration. It helps the region or country which
may concentrate on the production of that commodity for which it’s most suited. It will rely on other
countries for those goods which it can’t produce. Thus, it helps in territorial division of labor.
Exploitation of local resources is also possible. Location of industries also is decided by the transport.
Thus, transportation helps everyone in the world to reap the benefit of specialization.
It Helps in Stabilizing Prices
Transportation brings about regional price equalization. It helps in the movement of goods from
surplus area to deficit areas. This leads to equalization demand and supply conditions prices and
elastic or static according to the demand and supply conditions this reduces the price of goods to the
consumer. Thus, transportation is good for both the consumer and producers. It intensifies
competition among dealer and thus reduces prices.
It Provides Employment Opportunities
It provides employment opportunities to skilled or unskilled labors. Millions of peoples are needed to
perform the function transport throughout the world. There are three modes of transport; land, water,
air. Thus, transport lends a helping hand to employment.
It Strengthens the Deface of a Nation
Transport is the most important element for strengthening the defiance of a nation. Men and materials
to fight wars are moved by the transport system. The national defiance force consists of air force,
navy and army and these three categories of transport are essential.
It Reduce the Dangers of Shortages
In this world everything is in short supply relating to its demand. The danger of shortage can be
eradicated with the help of transport. Transport creates place utility. American wheat, Russian
kerosene, Burmese rice etc. are brought by us. We are in shortage of these commodities. Due to
shortage of one commodity in one place the price will be high. But that commodity may be in
abundant supply in other places at low prices. Transport helps the shortage area by bringing the goods
from the abundant area.
It Helps in the Transformation of the Economy
Transformation of agriculture from subsistence farming to commercial farming is possible through the
development of transport. Development of industries is possible only by the movement of raw
material, labor capital, etc. this movement is possible only through transport. Thus, transport leads to
transformation in agriculture and industrial economy of a country.
Transform of Social and Cultural Structures
Social and cultural contacts between one country and another country are indicated through transport.
Social homogeneity and utility are created. Religious ideals are known, standard for living education
and day to day life are known a society stagnant; it can never enjoy the benefit of a modern and
progressive society. National unity and integrity are prompted by transport. Increases the knowledge
of the people. It spreads the culture and civilization all over the world.
It Increase of the Demand for Goods
Today markets have become national or international only because of transport. It wider the market,
both consumers and producers are benefited by the extension of the market. New comers in newer
places can easily be contacted and thus demand is created. It helps the product to be distributed in the
minimum possible time.
2.2.5.2 Economic Significance Of Transportation
Transportation has a great economic significance in various ways. For instance, it ensures regular
supply of raw materials and workers that keep the factory running and distributing finished products
over markets. It provides modern means of transport for better commodity exchange relations. It also
enhances place and timer utility of commodities in a way they satisfy human wants. Not only this but
it also facilitates the international flow of labor and capital in a way entrepreneur find new
opportunities to start profitable trade and industries, so that it serves as a backbone of industrial
development. Furthermore, transportation plays an undeniable role in agricultural production;
facilitates the distribution of surplus production to deficit areas; and it provides employment to
millions of people as well.
Looking at the significance of transport described so far, it’s obvious that transport plays key roles in
the economic development of the world in general; that without it, there would be very slow physical
distribution which has a negative impact on all business areas including the ones mentioned above.
2.2.5.3 Modes Of Transportation
The effectiveness of any modes of transport is affected by equipment investments and operating
decisions by the carrier as well as the available infrastructure and transportation policies. The carrier’s
primary objective is to ensure good utilization of its assets while providing customers with an
acceptable level of service. Carrier decisions are affected by equipment cost; fixed operating cost,
variable operating costs, the responsiveness the carrier seeks to provide its target segment, and the
prices that the market will bear.
Supply chains use a combination of the following modes of transportation; When Altekar, (2005)
categorized the type of transportations, there are five basic modes of transportation, as follows; each
mode has its own significance depending up on the geographical location and product to be
transported. Each differs in cost and time taken to transport the goods from one place to another.
Roadways: It’s the most common means of transportation. In this is something that connects all the
places. Motor carriers have the flexibility because they are able to operate in all kinds of roadways.
Railway: Are becoming more responsive to specific customer needs, emphasizing bulk industries and
heavy manufacturing. To provide service to major rail users, railways are concentrating of specialized
equipment like unit trains, etc.
Unit trains are an entire train carrying one single product. Typically, the product is a bulk commodity
such as coal or grain. Unit trains have also been used to support assembly operations for automobiles
industries, it’s faster and less expensive to operate that traditional trains.
Pipeline: It plays a significant part in the transportation of crude and petroleum oil. In addition to
petroleum the other important product transported by pipeline is natural gas. Pipelines are also utilized
for transport of manufacturing chemicals polarized by bulk materials.
The basic nature of a pipeline in unique in comparison to all other modes of transport, pipeline
operate on twenty-four-hour basis, seven days a week and are limited only by commodity change over
and maintenance. Unlike other modes there is no empty container or vehicles that must be returned.
Waterways: It’s the oldest modes of transportation. Domestic water transportation involves the lakes,
canals, and navigable rivers. The main advantage of waterways is the capacity to move extremely is
shipments. Water transport employs two types of vessels, namely the deep-water vessel, which are
generally operate on rivers and canals and have considerably more flexibility.
Airways: It’s the newest, but least utilized mode of transportations air freight. Its significant
advantage lies in the speed with which shipment can be transported. A coast- to- coast shipment via
air require only a few hours aspect of high cost that could be prohibitive.
Therefore, a companies’ needs to clearly identify which modes of transportation it should use so as to
transport materials to the company itself and to its customers; and this is because the safer the modes
of transportation, the safer the goods will reach its destination, which in turn, leads to customer
satisfaction.
2.2.5.4 Element Of Transportation Cost
According to Khanna (2002: 242) the following are vital element of transportation cost to be taken in
to account tariff of transportation which refer to the fright change various mode of transport to be paid
for the movement of goods from one location to another transit time cost which is the total logistic
cost deal with the cost of inventory in transit time of particular time of particular mode of transport is
longer it means that the product of the company remains transit time cost.
Protective packaging required for specific product and mode of transportation when there is a
requirement for specific package such cost come under total transport cost transit insurance cost
another element transport cost which it is the set of insurance paid to insurance company to cover
various type of risk but because advance of containerization these cost has been minimized due to less
chance of damage of good during transit and at least a part from a above cost element of transport cost
there are other miscellaneous cost such as local taxes toll tokes especially toll when good are shipped
road ways Agrawa, (2003: 217).
2.2.5.5 Inventory Management
According to Khanna (2002: 17) inventory level result is high carrying cost and potential
obsolescence the control of inventory is these for extremely important in the successful function of a
firm.
Altaker (2005: 226) Inventory Management is a key to any successful distribution business it provide
everything you need to know about the receipt and movement of good the sale of removal or other
disposition of good and the precise valuation and status of goods remaining in inventory management
allow a distributer to meet or exceed his customer expectation of product availability with the amount
of each item that will maximize the distribution net profit. Sherlekar (2004:428) describe inventory
management as a heart of game of physical distribution.
i. Function of inventory
According to Havaldar Carla (2007:15-17) inventory function have a butter between supply and
demand both in terms of quantity and timing customer demand requirement for an operation on the
shop floor and parts and material to begin an operation and the supplier of the materials its rightly said
that inventory is the shock absorber of business however inventory means high carrying cost reduced
profit and even loss in market share.
ii. Types of inventory
According to Khanna (2002:102) there are two types of inventory associated with distribution there
are location inventories which are they are the combined stock of raw material and finished product
and work in process the level of each and combination of inventory level must be determined to
minimize the overall cost this inventory are maintained mainly with a view of meeting the seasonal
variation in the demand for production or for consumption and the other one is transit inventory which
include the material in transit from the vendors depot to the manufacturing center and finished product
on the move from the production center to the consumption center.
iii. Inventory Cost Element
According to Agrawal (2003:158) inventory cost the following element procurement cost: these cost
of product are due to several factor which include cost of order processing which involves use of
stationary and service cost of staff and the exclusive time spent the order processing, fax cost transmit
the procurement cost of transportation which include freight transit insurance protective packaging the
cost of in voice pricing including checking approval book entries and mailing cost of good handling
respecting and entry in the stock register computer.
According to Khanna (2002:103) Carrying cost of stored good sis due to the following point space
rent for the storage a goods the last of capital tide down in the stored good the cost of insurance of
good against fire the pilferage and taxes.
Out of stock cost: the cost of inventory maintains also include the cost inventory when goods are out
of stock the position occur when demand is normal but ordered goods are received late car load time
increases or when there is a sudden spurt in the demand for good or a combination of or the
circumstance and out of stock position for raw materials may lead to lose of production while an out
of stock position of raw material would require constant chasing the supplier by telephone , telex
massager or letters which would involve what is termed as back order cost beside these tangible cost
intangible cost are incurred because of the psychological change in the customer demand.
2.2.6 Warehousing
According to Khanna (2002:18) warehousing is another important functional of physical distribution
particularly when a manufacturer produces consumer good the optimal location warehouses having
regard to minimum transportation cost customer service level of inventories and company warehouses
versus are operated by the sales department or arrangements are made with public warehouse.
Alterak (2005: 275) a warehouse is a location adequate facility where volume shipment is received
from a production center broken down reassemble in to combination representing or particular order
or order and shipped to the customer location.
Moreover Havaldarsand Carals (2007:15-24) defined warehousing as part of the companies logistics
frame work that stores items raw material, packaging, materials tools work in process or finished
goods at and between the point of origin and the point of consumption and also provide information to
management on the state and also provide information to management on the status and condition of
the item being stored let us see the major function type and location selection criteria of warehouse.
Function of Warehousing
According to Khanna (2002:198) this function of warehousing include consolidation of material or
goods from different plants and dissipative his with a single track, bulk break stock sealing watch
focus on seasonal storage of good to select business for instance agriculture product are produce as a
specific time but consumed throughout the year being stored in such as manner and finally value
added service such packaging and labeling.
Operating Function: the essential processing of mistrial in a warehousing involve receiving of good
identifying good by giving an item code tag code of the carrier or and by physical properties sorting
of good displacing of good to store in a sense that the good are keep a side holding of good retrieving
of good mass holding of good where several item making up single order are brought together and
checked for completeness and order record are prepared or modified, dispatching of goods and order
recording are prepared or modified dispatching of good and finally preparing records and a advices.
Khanna (2005: 273).
Type Of Warehouse:
According to Altakare (2005: 276) warehouse can be classified based on two bases: on the bases of
ownership and on the bases of service.
a. Private warehouse: it comprises ware facility operated and or leased by company in the
handling its own good there are normally used by firm whose need are stable enough such as
retain chain stores or multiproduct company to make long term commitment on fixed
facilities.
b. Public warehouse: all those warehouses which are owned and operated by organization like
government, cooperative, or company in the private sector.
The space of public ware can be used by any other company or organization or individual public on
certain terms and condition of payment.
The bases of service: based on service provision warehouse can be categorized According to Khanna
(2002: 207-209).
a) Bounded warehouse: it is rented and authorized by the custom authorities for storing of good
tell import duty on it paid down other by government or private parties.
b) Field warehouse: the warehouse is managed by public warehousing agency in the premise of
the factory or company which need to facility for borrowing from a bank against the
certification of goods in storage in process by an independent professional warehouse man.
c) Agriculture warehouse: These warehouses are used for storing agriculture product grown
certain area.
d) Cold storage: This facility provided for perishable against payment of storage change for the
space utilized by different parties.
e) Distribution warehouse: there warehouse is located close to the manufacturing concern or
consuming areas their location depends on the nature of the product the time taken for transit
operation cost and the need to make product available in the market in obedience to the
demand for it.
f) Buffer storage warehouse: these warehouses are built strategy location with adequate
transport and communication facility and further transmitted to the distribute warehouse.
g) Export import warehouse: there warehouse is located near to the parts firm where
international trade is undertaken, they provide transit storage facilities for good a waiting on
word movement.
Warehouse location selection criteria:
According to Khanna (2002: 208) these various factor that should be before making decision on
warehouse location these factor are market service area and cost distribution from the warehouse to
the market area satisfaction of transport requirement and facility availability of various
infrastructures: power, water, road, and other important utility labor supply and labor cost in the area
in the potential for expansion cost of land a warehouse and other related cost.
2.2.7 Material Handling
According to( Khanna2002: 141) material handling is under taken at every stage of logistic activity
and is an integral part of the other element of logistic function through every material handling does
not add to the value of the product it’s un essential product function and un less the system is property
designed it even increase the cost of production.
Moreover Agrawal (2002: 371) explain material handling system is the logical and physical
manifestation of all requirement, police and practice intended for particular facility in the logistic
pipeline and supply chain process.
a. Function of Material Handling:
Material handling service as a basic tool in reduce wastage on machine and order packing times
uninterrupted production and distribution schedules for avoidance of movement bottleneck such
as loading and un loading problem protection of good from breakage/ damage during movement
offering safety to worker and provide safe working condition in ensures butter customer service
and satisfaction and can enhance productivity and efficiency reducing handling cost.
b. Major type of equipment used in material handling:
Major type of equipment used in material handling system are pallets fork lift track, cranes,
conveyors, elevator movable ramps and tractor.
Basic material handling principles:
Datta (2003: 273) also explain that while material handling practice very from industry to industry the
basic principle remains the same the principle is
 a. Least Handling is best handling its best of keep handling cost does not have value for the
product.
b. Loading and unloading since major portion of material handling activity lice in
loading is un loading this function must be given a great deal of attention ware ever economical
loading and unloading should be done by mechanical device such industrial track cranes conveyers
etc.
2.2.8 Packaging
According to Kotler (2003:436) packaging defenses all activity and designing and producing the
container for product and the container is called a packaging.
Packaging is the use of container and parts, together with the decoration and labeling of a product in
order to contain, protect and identify the merchandise and facilitate the use of the product. It is true
that an attractive packaging aid in motivating a customer to buy the product, the type of customer and
the demand and supply situation. The printing matter and the company trade mark project the
manufacturer’s image to the customer Khanna, (2002: 179).
Packaging is generally categorized in two broad types: logistical packaging and consumer packaging.
1. Logistical or industrial packaging: - is what facilities product flow during manufacturing,
shipping, handling, and storage. It includes shipping container for consumer goods, packages.
There is also packaging aspect to vehicle required for protection during loading and unloading
as well as inter –modal containerization Agrewal (2003: 247).
2. Consumer packaging:-is often based on marketing consideration in terms of advertising and
sales value. At present the world of globalization packages are playing a very important role
in getting competitive advantage market and now a day we can see that firm which produce
and offer the same product to the market but effective packaging has getting competitive
advantage over their (Ibid)
2.2.9 Customer Service
According to Bowesex and Closes (2003:66) also explain customer service as processing providing
significance value add benefit to supply chain in a cost-effective way in the above definition that the
efficiencies of other element in the physical distribution activity has an impact on customer service is
one element of physical distribution.
2.2.10 Importance Of Distribution Channels
A marketing channel system is the particular set of marketing channels employed by a firm , decisions
about the marketing channel system are among the most critical facing management, and one of the
chief roles of marketing channels is to convert potential buyers in to profitable orders . Marketing
channels must not just serve markets, they must also markets. The channels chosen affect all other
marketing decisions. In addition, Channel decision involve relatively long-term commitments to other
firms as well as a set of policies and procedures. In managing its in term diaries , the firm must decide
how much effort to devote to push versus pull marketing . A push strategy involves the manufactures
using its sales force and trade promotion money to induce intermediaries, the firm must decide how
much effort to devote to push versus pull marketing. A push strategy involves the manufactures using
its sales force and trade promotion money to induce intermediaries to carry, Promote, and sell the
product to end users . Push strategy is appropriate where there is low brand loyalty in a category,
brand choice is made in the store, the product is an impulse item, a product benefits are well
understood. A pull strategy involves the manufacture using advertising and promotion to persuade
consumers to ask intermediaries to order it. Pull strategy is appropriate when there is high brand
loyalty and high involvement in the category, when people perceive differences between rends , and
when people choose the brand before they go the store. ( Koter and keller, 2006 468)
2.3 Channel Structure and Function
Channel Structure
Channel structure is the group of channel members to which a set of distribution tasks has be
allocated. Channel structure also shows the distribution tasks has been allocated . Channel structure
also shows the number of channel level . ( Saxena, 2002:393) and Kotler and Armstrong ( 2006: 364)
also shared the above idea in the same manner, channel levels represent channel members who have a
specific role to play, thus, the structure of the channel will reflect the manner in which tasks among
the members of the channel allocated. ( Rosen Bloom, 1995: 22) The Producer and the final customer
are part of every channel. We will use the number of intermediary levels to designate the length of a
channel.
Fig 1 A typical portrayal of channel structure for consumer goods.

Manufacture Manufacture Manufacture Manufacture

Retailer wholesaler Agent

Consumer Consumer Retailer Wholesaler

Consumer Consumer

Channel functions
A marketing channel performs the works of moving goods from producers to consumers. It over
comes to time, place and possession gaps heat separate goods and services from those who need or
want them. ( Kotler) and keller, 2006: 473)
Members of the marketing channel perform a number of key functions:

 Reach agreements on price and other terms so that transfer of ownership or possession can be
affected
 Develop and disseminate persuasive communications to stimulate purchasing
 Place orders with manufactures
 Acquire the fund to finance inventories at different levels in the marketing channel
 Assume risk connected with carrying out channel work. Provide for the successive storage
and movements of physical products.
  Provided from buyer’s payment of their bills throngs banks and other financial institutions,
 Oversee actual transfer of ownership from one organization or person to another.
2.4 Setting and Coordinating Distributions Objectives
Having recognized that a channel design decision is needed, the channel manager should try to
develop a channel structure , whether from scratch or by modifying existing channels, that will help
achieve the firm’s distribution objective efficiently . ( Rosen Bloom; 1995: 22) Pointed out that in
order to set distribution objectives that are well coordinated with other marketing and firm objectives
and strategies, channel manager need to perform three tasks:
1. They should familiarize themselves with the objective and strategies in the other marketing
mix areas and any other relevant objectives and strategies of the firm .
2. they should set distribution objectives and state them explicitly
3. They should check to see of the distribution objectives they have set are congruent with
marketing and other general objectives and strategies of the firm.
Specifying he distribution tasks / ( Functions) must be performed of the distribution objectives are to
be met. The tasks may include such activities buying , selling communication, transportation storage ,
risk taking, financing, breading bulls, and other. (* Rosen Bloom: 1995: 22)
2.5 Developing possible alternative channel
Having specified in detail the particular distribution tasks that need to be performed to achieve the
distribution tasks that need to be performed to achieve the distribution objectives, the channel
manager should then consider alternative ways of allocating these tasks.
The allocation alternatives ( Possible channel structures) should be in terms of the following three
dimensions:
1. Number of levels in the channel
2. Intensity at various levels: intensity refers to the number of intermediaries at each levels of
the marketing channel.
3. Types of intermediaries : particular type of intermediaries to be used at various level of the
channel. ( Rrosen bloom, 1995:22)
2.6 Apply Selection Criteria
Having laid out several possible alternative Channel structures, the channel manager should them
evaluate a number of variables to determine how they are likely to influence various channel
structures. According to Gupta, (1993;320, etzel, /2004:400) lamb and etal, ( 1994: 429) and Resen
bloom, ( 1995: 22) six basic categories can be formed in the analysis of alternative channel structures.
These are:

 Market variables: all of modern marketing management including philosophy of the

marketing Concept, which stresses customer ( market) Orientation. Hence, just as the
products a firm offers, the prices it changes and promotional message it employs should
closely reflect the needs and wants of the target market, so to should the structure of its
marketing channels.
 Product Variables: Product variables are another important category to consider in evaluating
alternatives channel structures. Some of the most important product variables are bulk product
acceptance. Further, the degree of selectivity also tends to be higher for new product because
a more carefully selected group of intermediaries is more likely to provide, more aggressive
promotion.
 company Variables: the most important company variables affecting channel design are size
objective and strategies.
  Behavioral variables: the marketing channel is characterized not only by economic processes
as well. The marketing channel may therefore be viewed as a social system affected by such
behavioral dimensions as conflict, power , role, and communications processes.
 Intermediary variables: the key intermediary variables related to channel structure are
availability in a number of cases, he availability of adequate intermediaries will influence
channel structure.
 Cost: the cost of using intermediaries is always a construction in choosing channel structure.
 Service: the service offered by intermediaries is closely related to the problem of selection.
 Environmental Variables: Economic, sericulture, competitive technological, and legal
environmental force can have a significant impact in channel structure.
2.7 Distribution Channel Strategy
The company’s marketing strategy is part of the overall business plan of the company and its
corporate strategy distribution, being part of the marketing effort.
The overall strategy and direction for the company is self out in its corporate strategy the marketing
strategy outlines how this overall company strategy will be achieved using the company products and
its distribution network organizing and managing the distribution function from the part of the
distribution strategy.
2.8 Recognizing the Needs for A Channel Design
According to sahu and rout, ( 2003: 12) in today’s world of mass production, there is always a
pressing need for intermediaries of one type on the other for enabling the goods to reach the customer.
In a more detailed manner, Rosen Bloom: ( 1995: 22) has pointed out many situations that can
indicate the need for a channel design Bloom. ( 1995:22)has pointed out many situations that can
indicate the need for a channel design as follows.

 Developing a new product or product line if existing channels for other products are not
suitable for the new product or product lines a new channel may have to be set up in existing
channels modified I some fashion
 aiming an existing product at a new target market
 Making a major change in some other component of the marketing mix. - Establishing a new
firm, from scratch or as a result of mergers or questions.
2.9 An Intermediaries Necessary
The question most often asked is if distribution intermediaries are really required? The answer to this
would be not always , as sometimes the commitment of the intermediary and his need for an excellent
distribution effort may not be of the same intensity as that of the company.
with the advent of the internet, examples of companies like Amazon and Dell which directly deal with
the consumers in plenty. The example of Bata India is a case in point, Bata gas set up a distribution
network of hundreds of its own outlets where it sells its branded footwear directly to the consumers.
In fact, Bata consumers do not think of any other way of buying their favorite foot wear. Another
well-known company is Eureka forbs which does not have any physical stocks of its products in any
place for consumers to access. Instead, the company’s sales people call on their prospects at their
homes, introduce the product, demonstrate its effectiveness and sell the products directly
Normally , in case of technically complicated products the company may want to handle the
distribution themselves as they cannot expect the intermediary to learn as much and as well about the
product as their salesperson. Also, the intermediary in this case may not be label to handle questions
about the products as effectively.
Wholesalers:
They normally operate out of the main markets in a city. They deal with a large number of company’s
products and packs. They have their own shops in busy trading areas. There , Fitures are:

 they choose and decide what products they will sell

 They are not on contract with any companies
 their customers are other wholesalers, retailers and institutions
 They negotiate about 15 days credit from the distributors and special privileges on giving
purchase requests more than once a week even though the beat plan of the distributor may
give them one visits a week.
 They extend credit terms to their loyal customer
Retailers
They are the shopkeepers who set up shops in the market place to cater to the needs of hundreds of
consumes. If their tailor is located in a busy part of the market were the consumer traffic is large, he
can command a lot of profitable terms from the distributors and companies like credit , promotions,
renting display space .
Anyway, the retailer makes the highest margins in the entire supply chain in Retailers extends credit
to only about 25% of their customers. They have also started home delivery to their regular and
customers close to their outlet.
Value added resellers purchase the incomplete product or kit and add value by assembling it and
selling to the customers depending on specification.
Distributors, Dealers, Stockiest, Agents
This set of channel members also known as stockiest agents and guarantors depending in the extent
of redistribution undertaken by them for the companies they represent. Agents do not invest in the
company’s products . All belong to some category of company out sourcing to help distribute
products to retailers . Some characteristics of distributions are:-

 they are required to incest in the product by buying it from the company
 they are on commissions, margin or mark- ups,
 They may or may not get credit from the company they, however, give credit to their
customers who are wholesalers or retailers.
 Commission or margin is a percentage of the price at which they buy the product from the
company
 Mark- up is still a percentage but based on the selling price to the customer retailer.
Need for A Distributor
A distributor may be required under three circumstances:
1. For entering a new town
2. for additional coverage in some town
3. For replacing an existing distributor.
When entering a new town with a distributor network it is necessary to first assess the potential for
the company business to decide if the town can Sustain a full-fledged distributor and the number of
distributors required.
It Is necessary to estimate the cost of servicing the market. The cost of servicing the cost is to be seen
in relation to the likely benefit of servicing the market using distributions . the cost elements to be
considered are:

 Logistics cost of serving the market

 The number of outlets to be covered by Wholesaler, retail and institutions
 Frequency of visits required for the market and the outlets - Sales revenue likely from each
visit.
 Whether the markets are to be cover with ready stocks or orders can be booked for later
delivery.
 The likely collections during each visit it this takes in to account the credit to be extended f
header and covale. ( 2007 : 11.12)
Expectations from The Distribution
This is to be defined right at the beginning so that the prospective candidates can be advised and
second by to get the right kind of distributor.
The expectations are:

 Achieving sales targets in volume , value and brand packs,

 Financial commitment for inventory and credit to be extended in the market
 Investment in infrastructure storage space vehicle for distribution
 Manpower for selling and handling the office records and reports
 Distribution capabilities markets and outlet overage with productive calls as per a
predestinated beat plan
 Developing new markets and new accounts
 Managing key accounts and institutional business
 Merchandising and displays in the market
 Secondary sales efforts and tracking primary sales are what the distributors buy from the
company secondary customers and is more important.
 Effectively handling promotions and schemes initiated by the company.
 Managing damage stocks.
 Organizing and participating in promotions events
 New products and pack – sizes launching assisting the company
 Handling statutory requirements on behalf of the company
 Payments and remittance to the company in time.

Selection of Distributors

 the distributor recruitment and selection process are quite tedious and involves some of these
steps
 Bases on company requirements, identifying two or three prospects for each requirement,
identifying two or three prospects for each appointment necessary
 Meeting the prospects explaining to them what is required and finding out their interest levels
 After getting all this information, the sales people have to short – list one or two final
candidates with whom the dialogue can continue .
 The final selection could be made on qualitative and quantitative factors. The qualitative
factors could be willingness eagerness. Confidence in himself and the company products
 willingness to spend time in the market by the owner himself, willingness to abide by the
company rule, keeping the image of the company intact and so on.
Channel Design Decisions
Designing a marketing channel system involves analyzing customer needs, establishing channel
objectives, identifying major channel alternatives , and evaluating major channels alternatives.
Analyzing Customer’s Desired Service Output Levels
In designing the marketing channel , the marketer must understand the service output levels desired
by target customers , channels the marketer must understand the service output levels desired by
target customer customers, channels produce five service out puts
1. Lot size the number of units the channel permits a typical customer to purchase on one
occasion
2. Waiting and delivery time: the average time customers of that channel wait for receipt of the
goods.
3. Spatial convince: the degree to which the marketing channel makes it easy for customers to
purchase the product.
4. Product variety: the assortment breadth provided by the marketing channel. Normally,
customers prefer a greater assortment because more choices increase the chance of finding
what they need.
5. Service backup: the add –on services ( Credit, delivery, installation, repairs provided by the
channel .
Identifying Major Channel Alternatives
Companies can choose from a wide variety of channels for reaching customers. From sales forces to
agents , distributors, dealers, direct mail telemarketing, and internet, each channel has unique strength
as well as weakness, sales forces can handle complex products and transactions, but they are
expensive. The internet is much less expensive, but it cannot handle complex products. Distributors
can create sales, but the company loses direct contact with customers. The problem is further
complicated by the fact that most companies how use a mix of channels. A channel alternative is
described by three elements they type of available business intermediaries, the number of
intermediaries needed, and the terms and responsibilities of each channel member , kotler and Keller:
( 2006: 477,478)
2.10 Types of Intermediaries
A firm needs to identify the types of intermediaries available to carry on its channel work: Expand the
company’s direct sales force assign sales representatives to contact all prospects in an area, or develop
separate sales forces for the different industries. Hire manufactures agents in different requires or end
use industries to sell the new equipment. Find distributors in the different requires or end use
industries that will buy and carry the device give them exclusive distribution, adequate margins,
product training , and promotional support.
number of intermediaries
Companies have to decide in the number of intermediaries to use at each channel level . Three
strategies are available exclusive distribution, selective distribution, and intensive distribution.
According to Havaldor and coval. ( 2007: 11.14)
Patterns of Distribution
This determines the intensity of desired distribution after a firm has decided on the most appropriate
channels distribution. In a way, the intensity denotes the service level that the organization provides to
its customers. There are three types of distribution intensity:

 Intensive distribution
 Selective distribution
 Exclusive distribution
Terms and Responsibilities of Channel Members
The producer must determine the right and responsibilities of participating channel members. The
main elements in the “ trade- relations mix” are price policies, conditions of sale, territorial rights, and
specific services to be perform by each party:

 Price policy: calls for the producer to establish a price list and schedule equitable and
sufficient
 Conditions of sale refer: to payment terms and producer guarantees.
 Distributions’ territorial right: define the distributions’ territories and the terms under which
the producer will enfranchise other distributions.
 Mutual services and responsibilities must be carefully spelled out, especially in franchised
and exclusive agency channels
 Evaluating the major alternatives
Each channel alternatives need to be evaluated against economic, control, and adapter criteria.
2.11 Product Impact on Marketing Channel Design
Marketing channel design must be closely correlated and integrated with all other aspects of a firm’s
marketing strategy. Decisions about and strategies for dealing with products have a particularly
critical role in shaping the design and structure of channels.
Product Attributes
A product is actually a bundle of attributes, all of which have implication for channel design.
Attributes such as unit value, perish ability, handling characteristics, technical complexity and
standardization are key determination of appropriate channel structure.
New Product Development
New product development activity can be undertaken by any channel member and may have
significant impact on the structure and relationship of channel members while the term “ New
product” can have several meanings, generally it is applied to a new product development effort by
manufactures and middlemen and the interrelationship of these efforts with marketing channel design.
Product Life Cycle
The product life cycle is a model that illustrates the stage though which a typical product passes over
time. It tracks the sales and profitability of a product as it moves from introduction, through growth
and maturity, to decline. It is a los a well-accepted. Frame work for structuring marketing channel
design related to each life cycle stage.
Brand Strategies
Product impact in distribution channels is the branch policies and strategies of channel participants
relative to manufactures brands or private distributor brands. A manufactures brand is developed and
owned by the producer of the item private distributor brands are developed and owned by reseller.
( wholesalers or retailers). Source: Oxford associates, adapted from Dr. Row land T.morialy, cu
bexcorp. Kotler and keller: ( 2006: 481)
Control and adaptive criteria : using a sales agency poses a control problem. A sales agency is an
independent firm selling to maximize its profits . Agents may can cent rate in the customers who buy
the most not necessarily those who buy the manufactures goods. Furthermore, agents might not
master the technical details of the components product or handle its promotion materials effectively.
To develop a channel, members must make some degree of commitment to each specified After a
company has chosen a channel alternative, individual intermediaries must be selected, trained,
motivated, and period of time.
2.11 Empirical Literature
Fengyi. Wu, and Yuehhua. Lee (2009) in their study investigation channel power and satisfaction in a
product distribution. He study adopted case study design in Guangzhou province-china. It was found
out that the competition faced by business organizations is no longer mere inter-firm competition, but
also inter-channel competition caused by adapting to industry globalization. Considering this trend,
this study found out that there was a correlation between distribution channel power customer
commitment and satisfaction. The results provide non-coercive power had a positive and significant
impact on the channel firms communication and commitment, as well as the supplier communication
and commitment had a positive and significant impact on the economic satisfaction and non-economic
satisfaction of channel firms.
Nadin (2008) in his study “managing relationship in distribution networks: evidence from the flour
factorys market” The paper was concerned the relationship among manufacturer and its dealers,
focusing, especially, on the trust determinants. The nature of the rapport is controversial since
asymmetrical power but at the same time, strong exclusive bonds influence the perception and the
decisions of the parties. In addition, a recent evolution in the European retailing contract regulation
has given new rooms for improvement for the dyad but has also left dark areas as regards potential
opportunistic initiative.
Based on the emerging theories on trust and the construct in relationship, the paper explored the deep
nature of relationship and trust in order to understand and reinforce the distribution of products to the
end users (customer). A field research, run in the Italian domain (Nadin, 2008), has demonstrated the
coexistence of power and trust determinants as drivers of the relationship between the producers and
the dealer. It has suggested, furthermore, that producers can influence, by a cause-effect chain
approach, the feeling of dealer toward the relationship and consequently can bust the dealer
collaboration on an affective commitment base.
Accordingly with the results of the Lado, Dant and Tekleab (2007) study our research has remarked
too the importance of the competitive tenure in the relationship as determinant of the innovation in the
relationship and widely in the distributive network. Daugherty (2009) in her study titled “reverse
logistics in the automobile aftermarket industry.
The study employed case study design whereby 321 respondents participated in the study data
collection was done through the questionnaires and interviews. The results indicated that trust exists
when one party has confidence in an exchange partner’s reliability and integrity. Trust involves an
expectation held by an individual that another can be relied on. The existence of trust is particularly
important with respect to buyer-seller exchange relationships. Buyer-seller relationships are almost
always unequal; one party has more power, better positioning, and/or more resources. Because of the
unevenness of power, the other party is likely to feel vulnerable unless trust is present. As such, trust
is the mutual confidence that no party to an exchange will exploit anothers vulnerabilities. It was
shown that downstream channel partners that trust suppliers exhibit higher levels of cooperation and
exert more effort on the part of the supplier. Channel partners that trust suppliers also tend to be more
committed to and intend to stay in the relationship. Trust is viewed as a highly effective means of
fostering cooperation across all types of inter organizational relationships. Thus, trust in their
customers appears important for suppliers who want to reap maximum benefits from the exchange
relationship.
In a recent review of the literature on trust, Atuahene-Gima and Li found that both the academic
literature and the popular press have a “strong normative bias toward the inherent value of trust - that
is, trust is good for performance.” However, they continue, “there is little empirical evidence to
support the validity of this viewpoint”. One study by Smith and Barclay, however, did find a positive
relationship between trust and a firm’s ability to achieve superior performance. The first hypothesis is
offered to further explore the issue.
Atafar et al, (2011) in their study “Assessing the Effectiveness of Distribution Channel in Isfahan
Zamzam Company in their research, they gathered data by interviewing the top marketing managers
who have high experiences in marketing, finally the variables in the research assumptions been used
to incorporate flow table model for measuring the Effectiveness of Distribution Channel in Isfahan
Zamzam Co. The study revealed that Zamzam distribution channel was successful in product
transportation, gathering market Information was effective in payment procedures but distribution
channel of this company is not been effective in trade promotion programs and communication with
retailers and wholesalers.
McFarland (2001) in his study “the marketing position of industrial distribution”; the article discussed
the position of industrial distributors in channels of distribution. The study was conducted in
Johannesburg, South Africa, interviews and questionnaires were employed as methods of data
collection. The result indicated that, doing business with industrial distributors is more cost effective
than doing business with sales branches, sales offices and agents. The author notes that when
compared to alternative agencies, the gross margin required by industrial distributors is similar. Also
it was noted that industrial distributors are better qualified than alternative agencies to offer services
such as emergency deliveries, credit clearance and knowledge of sources of supply for buyers.
Torii et al (2004) On the Length of Wholesale Marketing distribution Channels in Japan. The study
adopted case study design; data collection was conducted through the use of questionnaires and
interviews. It was revealed that wholesalers enter distribution channels to capitalize on their private
information about demand and supply. The channels become long only when such private information
is valuable. Also, the result indicated that there was a close link between wholesalers' private
information and length of the marketing distribution channel, based on analysis of panel data for five
wholesale industries drawn from the last three decades of Japan's Census of Commerce. Specifically,
it was shown that marketing distribution channels tend to be longer—that is, they have more
wholesale steps--where wholesalers tend to be in close geographic proximity to the final demanders,
where wholesalers tend not to be organized into distribution keiretsu by manufacturers, where
regional variation in demand tends to be idiosyncratic, where producers advertise less intensely and
distributors advertise more intensely, and where the density and heterogeneity of retail outlets is
greater. All of these are factors likely to be associated with the value of wholesalers' private
information.
David (2005) in his study “Distribution Keiretsu, Foreign Direct Investment, and Import Penetration
in Japan” based in directed marketing channel known in Japan as distribution keiretsu are more likely
than others to be headed by a primary wholesaler that is vertically integrated with the manufacturer,
which for foreign manufacturers entails their directly investing in Japan-based wholesale subsidiaries.
Briefly stated, vertical integration better aligns the non-contractible wholesaler effort levels with the
Manufacturer profit, but necessarily forgoes the inherent advantage of an independent wholesaler at
market-widening efforts. This establishes a trade-off bearing on the decision to vertically integrate.
Where market-widening efforts complicate the resolution of retail externalities, it can be better to
forgo market widening efforts altogether and instead focus exclusively on resolving the externalities,
vertically integrating with the wholesaler in order to better administer a distribution keiretsu.
 CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design

The study uses descriptive research design, which is accurately and systematically describes, observes
or validates aspects of groups collected through quantifiable information, like the relationship among
variables in natural state (siedlecki,2020), to show accurately the characteristics of particular situation.
3.2 Research Approach
The study uses quantitative approach from primary sources of data gathered by the company and
researchers themselves, this approach helps us to how numerical values which is derived from
observations to explain and describe the phenomena.
3.3 Types of data and source of data
The study has collect primary data from company sells person and managers by distributing
questioner in person and secondary data gathered from the company itself. Our source of data
generated through statistical data.
3.4 Data sampling and Study Area
The study scopes in Chilalo food complex. This study helps in assessing the product distribution
strategy practices of Chilalo food complex. For the target population we select the marketing manager
and business customers of the company which are wholesalers and retailers as a population. The
population rather than understanding can be used probability sampling technique. These sampling
technique conduct through census sampling technique, because numbers of respondents are 5
wholesalers and 55 retailers so the sample size of this research is to be 60 respondents to fill the
questioner.
3.5 Method of Data Collection Instrument
The study used primary and secondary data. Primary data has collected through questionnaire by
researchers. Secondary data collected by review related documents.
3.6 Method of Data Analysis and Presentation
The data collection organized and analyzed through questionnaire. Then interpretation prepared in the
form of table. The data gain from the questionnaire analyzed quantitively then conclusion and
recommendation are given.
Descriptive statistics will be used to analyze data to draw a clear understanding of the results of the
study. On this basis descriptive statics will be used in situation analysis of the study area.
 CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

This chapter deals with the Presentation, Analysis and Interpretation of the data. The data were
gathered from Chilalo food complex customers which are wholesalers and retails.
As described lately the data has been collected through questioner and interview. The
questionnaires had been distributed to wholesaler and retailer and interview where conducted with
Chilalo food complex marketing manager of the company. A total of 60 copies of the questionnaire
were distributed to respondent customers of which 55 of them were properly filled it out and
returned this results in the response rate of 91.67%.

4.1 General Characteristics of the Respondents

Table 4 . 1. indicate that the general characteristics of which include the respondents, which
include sex and educational level.
Table 1: Characteristics of the Study Population

No Item No of Respondent Percent %

1 Gender
Male 41 74.55
Female 14 25.45
Total 55 100
2 Age
A. 18-30 8 14.54
B. 31-42 34 61.81
C. 43-54 9 16.36
D. 55 and above 4 7.29
Total 55 100
3 Education background
1-12 grade 14 25.45
Certificate 8 14.54
Diploma 21 38.18
First degree 11 20
Second degree 1 1.81
Total 55 100

As indicated in table 1, 41(74.55%) are respondents were male, 14(25.45%) of them were female.
This implies that the majority of the respondent are male.

According to table 1 of item 2 34(61.81%) are respondents are 31-42 age, 9(16.36%) of them
are 43-54 age, 8(14.54%) respondents are 18-30 age and 4(7.29%) respondents 55 and above.
Thus implies the majority of the respondents’ age between 31-42.

According to item 3 of table 1, 21(38.18%) of respondents are diploma holder, 14(25.45%) of

respondents are 1-12 grade, 11(20%) of them are first degree, 8(14.54%) of them are certificate and
1(1.81%) the least number of category Second degree. Thus, implies that the majorities of the
respondent were well educated and have intellectual profile. Thus, it is possible to collect will get
reliable information.

4.2 Analysis of Major Findings

The next table show customers how long have been stay with company this indicated the respondents
how money years stay with company.

Table 2: Regarding Relationship with chilalo food complex

No Item No of Respondent Percent %

1 For how long have you been customer
of Chilalo Food Complex
6months-1 year 14 25.45
1-2 year 9 16.36
2-3 year 13 23.65
3 and above 19 34.54
Total 55 100

Table 2 shows that 19(34.54%) of them are 3years and above, 14(25.45%) of them are 6 months-1
year, 13(23.65%) of them are 2-3 years, and 9(16.36%) 1-2 years of relationship. Most of them are
implies the majority of the respondent have been long time relationship with the company there for
the respondents are able to get reliable information.

4.3 Analysis of Finding of the Study

The Order Processing Time Performance of Company With Other Competitor
The underline Table show how the company has be done effectively order processing practice of
the company regard to other competitor the mentioned item are presented as follow.
Table 3: Order Processing Time Performance
 No Item No of Respondent Percent %
1 How do you evaluate the order processing
time of chilalo food complex compared to other
competitor
Very fast 4 7.27
Fast 7 12.74
Medium 10 18.18
Late 25 45.45
Very late 9 16.36
Total 55 100
According to table 3 the order processing time of the company 25(45.45%) of the respondents
confirm that the company’s order processing time is late, 10(18.18%) of respondents answer is
medium, 9(16.36%) of respondents stated very late, 7(12.74%) of answers is fast and 4(7.27%) of
them replied very fast. The above finding tell as that how the order processing performance was
decreased compare to others competitor, More than half percentage of respondents rated late and
very late. Therefore, in order to investigate this critical issue further this question has raised to the
company marketing manager during the interview.

The management also admits that the order process time is late and said that the companies try to
overcome this problem with quality and price.

Responses on the Availability of Product Desired Level of Customer

Table 4: The Availability of Product

No Item No of Respondent Percent %

1 How do you evaluate the availability of
product with desired level of customer
Very high 4 7.27
High 8 14.54
Medium 25 45.45
Low 11 20
Very low 7 12.74
Total 55 100

Table 4 Presented availability of the product based on the desired level to customers 25(45.45%)
replied medium, 11(20%) of the respondents is low, 8(14.54%) stated high 7(12.74%) who the
respondents who answered very low regarding to this the company need to have taken more
effectively fulfill the desired of customer and 4(7.27%) of them are response is very high this
implies. it is the one of the primary function of distribution is insuring that the product or service
made available to the consumers which an arm’s length of his desired by providing time, place and
possession utility therefore the above concept the researcher can learn that how making the product
availability have a great value more over it can be used as a mechanism to acquire retain and grow
customers.

Table 5: Capability of Producing the Order Quantity

No Item No of Respondent Percent %

1 How do you evaluate the company’s
capability of producing the order at the
right time
Very good 7 12.72
Good 10 18.18
Medium 11 20
Poor 20 36.36
Very poor 7 12.72
Total 55 100

As table 5 show the capability of order quantity of the company is 20(36.36%) of them are that the
company’s capability of producing the order quantity at the right time is poor, 11(20%) of
respondents answer medium, 10(18.18%) of them are answer is good, 7(12.72%), 7(12.72%) of them
are similar with very good and very poor. The above finding tell us that capability of producing the
order quantity at the right time is difficult for customers to gain the product at the right time.

Table 6: Availability of the Product

No Item No of Respondent Percent %

1 Do you agree with the statement of that
the product are available when you want
Strongly agree 6 10.90
Agree 8 14.54
Neutral 11 20
Disagree 26 47.27
Strongly Disagree 4 7.27
Total 55 100
Table 6 shows that the availability of the product 26(47.27%) of respondent replied disagree,
11(20%), 8(14.54%) replied neutral and agree respectively, 6(10.90%) respondent replied strongly
agree and the rest 4(7.27%) of respondents stated strongly disagree. This clearly indicates that the
company not serving properly including making the product availability at the right time when
customers need it.

Table 7: The Capability of Producing Customer Specification

No Item No of Respondent Percent %

1 How do you measure the company
capability of producing according to
customer specification
Very high 5 9.09
High 10 18.18
Medium 23 41.83
Low 13 23.63
Very low 4 7.27
Total 55 100

Table 7 shows that 23 (41.83), of them replied medium, 13(23.63%),10(18.18%) replied low and high
respectively, 5(9.09%) of them rated very high and 4 (7.27%) of respondents implied very late.

Table 8: The Reliability of the Company

No Item No of Respondent Percent %

1 How do you measure the reliability of
the company
Very high 6 10.90
High 10 18.18
Medium 16 29.09
Low 16 19.09
Very low 7 12.72
Total 55 100

Table 8 item 16(29.09%), 16(29.09) of respondents replied medium and lower respectively,
10(18.18%) them are high, 7 (12.72%) of them are very low and 6 (10.90%) them rated very high.
This is clearly indicated the majority of respondents confirm the reliability of the company is low the
company need to done effectively serving properly including making the product quality desired of
customer.

Does the Company have Enough Warehouse

Warehouse refer to the storing and assorting in order to create time utility.

Table 9: The Company Ware House

No Item No of Respondent Percent %

1 Do you agree that the company has
enough ware house
Strongly agree 7 12.72
Agree 8 14.54
Neutral 19 34.56
Disagree 10 18.18
Strongly Disagree 11 20
Total 55 100

As indicated in terms of table 9 of item 1 19(34.56%) of them replied medium, 11(20%), 10(18.18%)
stated strongly disagree and disagree respectively 8(14.54%), 7(12.72%) replied agree and strongly
agree respectively. More than half of respondents believe the company ware house is not enough.

According to marketing manager of the company some product are easily perishable they need to
have more attention if we produce much more product we believe doesn’t face the shortage related
with for feature we can expand and increase number of warehouse than this because we need to
increase our production previous and then today for future.

Table 10: The Company Warehouse Location

No Item No of respondent Percent %

1 Do you think that the company ware house is
located at appropriate location
Yes 16 29.09
No 30 54.55
I don’t know 9 16.36
Total 55 100
Table 10 shows 30(54.55) of them answered No, 16(29.09), 9(16.36) of them respondent answer yes
and I don’t know respectively this implies the customers have a problem with company warehouse
location.

From this the student researcher understands that the company marketing manager no any kind of
warehouse customer place now it is so difficult. We gives more emphasizes for this because this is
basic and necessary for company regarding customer place.

Table 11: Customer Buying Capability

No Item No of respondent Percent %

1 How do you evaluate your customer buying
capability of end users
Very high 8 14.54
High 10 18.18
Neutral 21 38.18
Low 14 25.45
Very low 2 3.63
Total 55 100

According to table10, 21(38.18%) of respondents replied neutral, 14(25.45%) rated low, 10(18.18%)
respondents reply high, 8(14.54%) of them rated very high and 2(3.63%) of the respondents is very
low. this implies the majority of customers buying capability is poor.

Table 12: Over All Distribution

No Item No of Respondent Percent %

1 Overall distribution practice of the
Company
Very high 2 3.63
High 7 12.72
Neutral 16 29.11
Low 22 40
Very low 8 14.54
Total 55 100

The last table 11 shows 22(40%) of the respondent answered is low, 16(29.11%) of them are Neutral,
8(14.54%), 7(12.72%), replies very low and high respectively, 2(3.63%) of respondents very high.
This indicated that the majority of respondents agree that the overall physical distribution practice of
the company is low the company to do more effectively physical distribution elements because
more than half of business customer has does not confirm the overall distribution practice.

Finally regarding open ended question, the given suggestion option are summarized as follow
1 Most customers confirmed that for more than 8 years they have been engaged in business.
2 In relation to order processing performance most respondent said that, the company should
need to be change the activity of order processing.
3 Regarding distribution practice majority of the business customer agree that the company
shall give emphases the distribution practice.
4.4 The Interview Question for Marketing Manager

1. Where do you purchase the raw material available to produce your product?
We purchase the raw material more than 92 percent purchase from arsi and bale areas
2. How does your firm handle customer complain?
Oral or any kind of customer complain we receive in side of the company have a form
any customer full this form and give any kind of suggestion
3. What major problem do you face with regard to the distribution facility?
Most of our company equipment is not modernized because of this sometimes we can
face some problem the rest of others is normal.

CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

This chapter deals with the summary of the major finding of the study, conclusion drawn and
recommendation made by the researchers.

5.1. Summary of Major Finding

The main finding arising out of the survey and implication of the study are summarized have under as
follows:
 It has been revised that 41(74.54%) of the respondents were male and the rest 14(24.45%) were
female.
 With respect to age 34(61.81%) percent of respondent 31-42 age and 9(16.36%) percent of them
are age between 43-54.
 As the scope of the study limited in business customer regarding educational level of respondents
21(38.18) percent were diploma, 14(25.45%) percent were 1-12 grade, 11(20%) percent were
degree.
 With respect to how long have you been customer of the company 19(34.54%) percent of
respondent 3 and above 14(25.45%) percent of them are 6 months-1 years.
 Regarding order processing compared to other competitor 25(45.45%) percent of them are late,
10(18.18%) percent of respondent answer medium, and 9(16.36%) percent of are very late. From
this decide the order processing of the company is other competitor is late.
 In relation to availability of product with desired level of customers majority 25(45.45%) rated
medium and 11(20%) rated low.
 With regard to the order processing at the right time 20(36.36%) percent of replied that poor,
11(20%) percent respondents medium. From this decide the capability of order quantity at the
right time cannot deserve.
 Majority respondents 30(54.54) disagree that companies product is available when they want it.
 Issue rated to producing product customer specification 23(41.83), 13(23.63) rated medium and
low.
 In relation to evaluate the reliability 16(29.09), 16(29.09) percent of answer low and medium
respectively 10(18.18) of them rated high. The majority of the respondent are agree that the
cannot be reliable.
 Regarding whether the company has enough ware house majority 19(34.56%), 21(38.18%) rated
neutral and disagree respectively.
 Majority of respondents 30(54.55%) replied that the warehouse located is not in appropriate
location.
 Customer buying capability of end users 21(328.18%), 14(25.45%) evaluated medium and low
respectively.
 Over all distribution 22(40%) percent of respondent low, 16(29.11%) percent of respondent
answer medium and 8(14.54%) percent of them are very low. From this decide the majority of
the respondents are agreeing that the overall distribution is very low.

5.2. Conclusions

All the data analysis and discussion that have been made in the preceding part of the study are mean
to lead the student researcher to possible conclusion and recommendation precisely the conclusion
that can be made from finding of the research are portrayed here under.
 According to the finding the Chilalo food complex the order processing performance compared to
other competitor is poor or unsatisfactory. Therefore from the above discussion it is possible to
conclude that customer are not happy the order processing performance offered by the company,
on the other side the order processing efficiency means the ability to reduce the timing order
taking is lower due to this reason Chilalo food complex is going to lose its customer as well as its
market share.
 According to the research findings the availability of the product is also in question since
customers do not always get the product whenever they need it. Primary function of distribution
management is ensuring that the product or service is made available to the customer. From
the above statement one can notice that how the data obtained contradicts the distribution
principle. Therefore, conclude the situation may lead to customers move to other company,
ultimately the influence of it on the performance of the company is dangerous.
 According to research finding the availability of the product is also in question time of they
want the customer they don’t believe that because they are not satisfied the availability of
product cannot be get they want on the other side Chilalo food complex is going to lose its
customer.
 Based on the data obtained the capability of producing customer specification is low the
company doing now perform better respective customer. Thus, can be taken as the performance
is good but need to give more emphasized for future.
 From the conducted research the company that has not enough ware house the client are agree
this as regard to distribution management warehouse the storing assorting product in order to
create time utility. At the result it will be the company continue for future efficiently that this
condition.
 Based on research finding the warehouse location is not an appropriate place it’s difficult for
customer regarding the availability of on time. Thus it is impossible the sequence of product to
handle of customer.
 With regard distribution performance, the study revealed that the level of satisfaction is lower
than expected. It might be one of the main reasons for sales decline including the market share,
the overall distribution the broad range of activity concerned with the efficient movement of
finished product from the end of production line to the customer. At the result the companies
have a challenge over all distribution.
5.3. Recommendations

This part of the study tries to forward certain recommendation that would help the company
management to overcome the problem faced or occurred. The opinions which can be recommended
or forwarded allow the firm to analyze different that handle the management archive its objectives.
 Concerning the order processing the company should establish strong link between starting
production up to handling product to customers in order to provide modern equipment all the
facility.
 Regarding availability of product the company needs to give emphasize the distribution element
increase the production capacity and it can be need to done inter link between production
activities to fulfill the customers desired
 The company should determine the right capability integrated with distribution elements modern
 operational carry and bulk product to handle customer when they want. Effectively and offer at
the right time.
 The company should determine the availability of product offer when customer want Based on
this for future the importance of making maintain quality product improve the company market
effort.
 Regarding distribution performance the company should increase number of warehouse and to
assess customer from different location (area).
 The company should try to decentralize it’s warehouse were the market assess easily and make
the distribution channel effective and efficient reaching target market.
 Finally, the company for future effective distribution mechanism consider in order to improve the
overall distribution practice to satisfy the customer need. Besides these the company need to give
emphasizes the overall distribution element.
REFERENCE
Anderson and vince (2000) Strategy marketing boston: - Houghton miffin company
Boone and Kurtz (1995) Contermporary Marketing new. Delhi:- Mc million publishing co.Itd.
Coughlan.Annet, Erin Anderson Louis W.Stern. ADELI an DEL-ANSARG (2003). : Marketing
Channels new Delhi: prentice hall of India private limited.
Etzel and others (2001) .Marketing New York:-Mc Grew Hill companies.
J.Donald and M.Bix by cooper (2004) . Strategic marketing channel management. New Delhi:-Tana
Mc grow-Hill companies Inc.
K. Noresh (2006) . Marketing Research New Dehi;-prentice hall of India private limited company
Korler Philip and Kevin Lane Keller (2006) . Marketing Mangement 12ed New Dehi-prentice, hall
of India private Ltd.
Kotler, Pand Armstong. (2005) ,principles of marketing 11th editon.
Lamb Charles w, etal (2004), Marketing, 7th Edition south- western-Thomson Learing inc.
Nudhiraja. Sa and Mb Athreya (1996) . Case in strategic management. New Dehic;- Tana Mc grow-
Hill publishing companies limited.
Rosen Bewral bloom, (1995) . Marketing channels. A management view 5th editon florida- the
Dryden press.
Shau pk, kc ravt (2003), Salesmanship and sales management 3rd editon. New Dlhi-Vicas
publishing house pvt limited.
W. Lovies, Adel I EL-Asary and ANNET. Coughlan (1996) . Marketing channels new Jersey:-
prentice hall, Inc upper saddle river.