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  • Channels For Perishable and Durable Goods-Agriculture and Industrial

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    bharatvemula
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    There are two main methods for distributing goods: direct channels and indirect channels. Direct channels have advantages of being simple, short, and more profitable, but have limitations of limited coverage and requiring large investments. Indirect channels have advantages of wide coverage and suiting small businesses, but have longer channels and are less economical. There are three broad distribution options: intensive distribution, selective distribution, and exclusive distribution. Perishable goods like milk, food, and eggs use direct channels like manufacturers distributing to distributors who sell to retailers. Durable goods like cars, furniture and electronics can be distributed through both direct and indirect channels depending on other factors.

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    Channels for Perishable and Durable Goods-Agriculture and Industrial

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    There are two main methods for distributing goods: direct channels and indirect channels. Direct channels have advantages of being simple, short, and more profitable, but have limitations of limited coverage and requiring large investments. Indirect channels have advantages of wide coverage and suiting small businesses, but have longer channels and are less economical. There are three broad distribution options: intensive distribution, selective distribution, and exclusive distribution. Perishable goods like milk, food, and eggs use direct channels like manufacturers distributing to distributors who sell to retailers. Durable goods like cars, furniture and electronics can be distributed through both direct and indirect channels depending on other factors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    213 views17 pages

    Channels For Perishable and Durable Goods-Agriculture and Industrial

    Uploaded by

    bharatvemula
    There are two main methods for distributing goods: direct channels and indirect channels. Direct channels have advantages of being simple, short, and more profitable, but have limitations of limited coverage and requiring large investments. Indirect channels have advantages of wide coverage and suiting small businesses, but have longer channels and are less economical. There are three broad distribution options: intensive distribution, selective distribution, and exclusive distribution. Perishable goods like milk, food, and eggs use direct channels like manufacturers distributing to distributors who sell to retailers. Durable goods like cars, furniture and electronics can be distributed through both direct and indirect channels depending on other factors.

    Copyright:

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    Download as PPTX, PDF, TXT or read online from Scribd
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    of 17

    Channels for Perishable and Durable goods-Agriculture and Industrial goods

    Channels commonly used.


    Two methods which are commonly followed for the the distribution of the goods are:1.Selling through direct channels Advantage:   

    Simple and short Fast deliver of goods More profit Better understanding of consumer

    Contd
    Disadvantages:   

    Limited coverage Non-availability of expert services of middle man. Large investment is required. Unsuitable for small producers.

    2. Selling through indirect channels Advantages: Wide coverage  Availability of expert service  Suitable for small business

    Contd
    Disadvantages:  

    Long channels involved Less economical Less profit

    Channel strategy
    There are 3 broad option available for the distribution of the goods:
     Intensive distribution  selective distribution  Exclusive distribution

    Perishable goods
    Perishable goods are those goods which have a shorter life cycle and cannot be used repeatedly.
     E.g:

    Milk Food Egg

    Channel for perishable goods


    Tirumala milk Pvt. Ltd :distribution channel of Bangalore based company Manufacturer Distributor Retailer  80 Distributors.  Each Distributor covers 300 shops everyday.  Starts distributing milk at 3am.  Distributor Sell around 4000 liters/day.

    Distribution of mossila cake(Bangalore)

    Durable goods
    Durable good or a hard good is a good that does not quickly wear out, or more specifically, one that yields utility over time rather than being completely consumed in one use.. E.g:   

    Car Furniture Sports equipment Consumer electronics .etc.

    Distribution of durable goods

    Agriculture goods
    Meaning:-agriculture products are those products which are derived from nature/agricultural activities and are of some value to the end consumers.

    Eg:  

    Rice Wheat Tea.etc.

    Agriculture goods

    Industrial goods
    Meaning :-Industrial goods are those products which are bought/purchased by the other business for the manufacturing the consumer goods. Eg: Heavy machineries  Iron  steel  coal

    Distribution of industrial goods

    Factors effecting the channels of distribution


    1.Product factors y Unit value of product y Customized or standardized product y Perishable product y Technical product 2.Market factors y Number of buyers y Buying habits. y Buying quantity.

    Contd
    3.Company factors. y Goodwill y Financial position of the company. 4.Government factors.

    THANK YOU

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