1) How should the ideal channel for distributing pesticides be designed?

Siffco should first List down all service output and develop dev elop levels at which each
service output will be offered then Work back from each service output level and conceive the
activities that have to be performed Structure an ideal distribution channel Calculate the cost
incurred Develop channel establishment plan .


2) What are the services output demands of the farmers?
Service Output demands:
Farmers Bulk breaking: Low SKU size Low prices (even at the cost of quality) Credit
Spatial convenience : Presence in Mandi
Availability at nearer sources, even if at a higher rate
Availability with other farm products Assortment/ variety
Customer service : Reliable
Information provision: Information
Support on usage

3) What types of channel flows have to be performed to achieve these Service outputs?

Physical Possession, Ownership, Promotion, Negotiation, Financing, Risk-taking, Ordering flow,
Payment flow


4) How can these service output demands be linked to channel flows?
Ownership of pesticides, Physical possession, Promotion, Financing, Payment, Assortment

Service Output demands: Retailers:
Freedom to deal in all other products too Storage Area Close Contact with Sales force 5-15%
Margin Service Output demands: Retailers 5-15% Margin Close Contact with Sales force
Service Output demands: Distributors

5) Can Siffco differentiate itself by creating an innovative channel?
Solution
E-chaupal type solution
Retailer-cum-Expert
Tie up with agro expert
Do not advertise/ Feature in Krishi Darshan


Distribution channel
Manufacturer
C&F agents
Wholesaler
Sales agent
Panchayat co-operative society mandi