SYNOPSIS

ON
COMPARATIVE ANALYSIS OF DISTRIBUTION CHANNEL
OF SAMSUNG INDIA AND MICROMAX MOBILES
SUBMITTED BY:
PRABHANSU DHAR DWIVEDI
Enrollment No : !"#$##$"%&
SI''IM MANIPAL UNIVERSITY
YEAR : (#!)
RATIONAL OF THE STUDY
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.
Pl*+e. Place is also known as channel, distribution, or intermediary. It is the mechanism
through which goods and/or services are moved from the manufacturer/ service provider
to the user or consumer.
A +l*,,-+*l D-,tr-./t-on ,+en*r-o:
A wholesaler procures an order, acquires goods and stores them in a warehouse, supplies
orderbased stock for a calculated amount of profits. !he wholesaler played a number of
roles traditionally he was an intermediary who took care of logistics and moved stock
around, a consolidated sales agent for suppliers, a local customer service point and a
demand buffer for manufacturers.
"es, multitasking e#isted even then, but with limited scope. !hese limitations were of the
physical kind all these roles could be played out only within a certain geographical
terrain.
T0e D-,tr-./t-on Net1or2 to3*4:
!oday, the role of the distributor as an intermediary has morphed into that of a
$disintermediary$. A distributor plays a virtual role, an almost invisible part of a smooth
supply chain. !hirdparty logistics providers help ship goods from one part of the globe
to another in a day, while a more customercentric distribution chain enables direct
ordering and tracking of orders over the Internet.
%emote means of customer service diminishes the importance of a local customer.
!oday$s supply chains have become e#tended value chains where distributor operations
have shifted from the buy, hold and sell paradigm to the sell, source and ship paradigm.
!o make these necessary shifts the distributor needs to have more information about all
customers, learn to manage inventory from other distributors and have a workflowbased
information system.
T45e, o6 C0*nnel Interme3-*r-e,
!here are many types of intermediaries such as wholesalers, agents, retailers, the Internet,
overseas distributors, direct marketing &from manufacturer to user without an
intermediary', and many others. !he main modes of distribution will be looked at in more
detail.
! C0*nnel Interme3-*r-e, 7 W0ole,*ler,
o !hey break down $bulk$ into smaller packages for resale by a retailer.
o !hey buy from producers and resell to retailers. !hey take ownership or $title$
togoods whereas agents do not.
o !hey provide storage facilities. (or e#ample, cheese manufacturers seldom wait
for their product to mature. !hey sell on to a wholesaler that will store it and
eventually resell to a retailer.
o )holesalers offer reduce the physical contact cost between the producer and
consumer resulting in lower customer service costs, or sales force costs.
o A wholesaler will often take on some of the marketing responsibilities. *any
produce their own brochures and use their own telesales operations.
( C0*nnel Interme3-*r-e, 7 A8ent,
o Agents are mainly used in international markets.
o An agent will typically secure an order for a producer and will take a commission.
!hey do not tend to take title to the goods. !his means that capital is not tied up in
goods. +owever, a $stockiest agent$ will hold consignment stock &i.e. will store the
stock, but the title will remain with the producer. !his approach is used where
goods need to get into a market soon after the order is placed e.g. foodstuffs'.
o Agents can be very e#pensive to train. !hey are difficult to keep control of due to
the physical distances involved. !hey are difficult to motivate.
" C0*nnel Interme3-*r-e, 7 Ret*-ler,
o %etailers will have a much stronger personal relationship with the consumer.
o !he retailer will hold several other brands and products. A consumer will e#pect to
be e#posed to many products.
o %etailers will often offer credit to the customer e.g. electrical wholesalers, or travel
agents.
o Products and services are promoted and merchandised by the retailer.
o !he retailer will give the final selling price to the product.
o %etailers often have a strong $brand$ themselves e.g. %oss and )all*art in the
,-A, and Alisuper, *odelo, and .umbo in Portugal.
) C0*nnel Interme3-*r-e, 7 Internet
o !he Internet has a geographically disperse market.
o !he main benefit of the Internet is that niche products reach a wider audience
o !here are low barriers to entry as set up costs are low.
o ,se ecommerce technology &for payment, shopping software, etc'
o !here is a paradigm shift in commerce and consumption which benefits
distribution via the Internet.
COMPANY PROFILE OF MICROMAX
*icroma# is an Indian consumer electronics company located in /urgaon, +aryana,
India. It focuses on the manufacturing of mobile telephones, tablets, data cards and 012
televisions. It has 34 domestic offices across the country and international offices in
+ong 5ong and 2ubai. Presently, the company has about 6788 employees.
In 6776 *icroma# focused on reselling and distribution of hardware equipments and as
an I! software company in the year 3888 working on embedded platforms. In 3889, it
entered mobile handset business and by 3868 it became one of the largest Indian
domestic mobile handsets company by offering unique affordable innovations. !he
company has a 3:; market share in the smartphone segment in India as per the <*%
report for April 3864.
H-,tor4
A television advertising campaign, on satellite cricket channels, has helped the company
to gain customers. *icroma# has seen a continued rise in market share since that time
and is now the largest Indian domestic mobile handset company, in terms of units shipped
during the quarter ending *arch 46, 3868 and the second largest mobile handset seller in
India as of *arch 46, 3864. =n *arch 46, 3868, the company registered a market share
of >.3:; for that quarter, a growth from 8.?7; in -eptember 3889.=n .uly 39, 3866,
*icroma# withdrew its :.>> billion rupees &about @68> million' initial public
offering&IP=' due to volatile market conditions.!he withdrawal was recommended by its
board in order to allow the company to focus on new product launches and product
development.*icroma# Informatics 0imited has announced its foray into *aldivian
telecom space through an e#clusive partnership with -ense )ood *aldives &Pvt' 0td.
COMPANY PROFILE OF SAMSUNG INDIA
-amsung 1lectronics commenced its operations in India in 2ecember 677? and is today a
leading provider of <onsumer 1lectronics , I! and !elecom products in the Indian
market. -amsung India is the %egional +eadquarters for -amsungAs -outh )est Asia
operations, which provides employment to over 9,888 employees with around >,888
employees being involved in %B2. In 3868, -amsung India achieved a sales turnover of
,-@4.? billion.
-amsung began operations in India through its manufacturing comple# located at Coida
&,P', which today houses facilities for <olour !elevisions &including 42, 012 and 0<2
!elevisions', *obile Phones, %efrigerators, )ashing *achines and -plit Air
<onditioners categories. -amsung commenced operations of its second stateDoftheart
manufacturing comple# at -riperumbudur, !amil Cadu in Covember 388E. !oday, the
-riperumbudur facility manufactures <olour televisions, (ully Automatic (ront 0oading
)ashing *achines, %efrigerators and -plit Air <onditioners. -amsung India has two
%B2 <entres in India D at 2elhi and Fangalore .)hile the 2elhi %B2 <entre develops
software solutions for hiend televisions such as Plasma !Gs, 0<2 !Gs and 2igital
*edia Products, the Fangalore %B2 <entre works on maHor proHects for -amsung
1lectronics in the area of telecom, wireless terminals and infrastructure, Cetworking, -o<
&-ystem on <hip' 2igital Printing and other multimedia/digital media as well as
application software.
-amsung India is a market leader in product categories like 012 !Gs, 0<2 !Gs, -lim
!Gs and -ide by -ide %efrigerators. )hile it is the second largest mobile handset brand
in India, it leads in the smart phone segment in India.
-amsung India has won several awards and recognitions for both its corporate initiatives
as well as its product innovations in audio visual, home appliance, I! and telecom
product categories.
Apart from development of innovative technology, -amsung places great importance on
acting as a responsible corporate citizen in the communities where it operates. Its <-%
programs respond to the social and environmental needs and seek to give back to
communities that support the company. In 3887, -amsung launched the companyAs
<orporate -ocial %esponsibility initiative D I-amsung +ope ProHectA with proHects in the
areas of education, culture, sports, social welfare and community development. 1ach
program under the +ope ProHect uniquely addresses the needs of individual communities
while emphasizing on innovations for development of the community including
education, technology, engineering and I! technical training.
OB9ECTIVES OF THE STUDY
!o compare the distribution channel of -amsung India and *icroma# *obiles.
!o analyze the distributor relations, margin, supply norms of -amsung India and
*icroma# *obiles
!o analyze retailers view towards distribution channel of -amsung India and
*icroma# *obiles
!o formulate a new strategy for distribution.
!o build up a strong channel in comparison to both prospects.

REASON FOR CHOOSING THE PRO9ECT
-ince I am interested to analyze the distribution channel of -amsung India and *icroma#
*obiles and since I am associated with this field. I thought it will be great if I will
analyze distribution channel of -amsung India and *icroma# *obiles. !his will also
help the reader to analyze the benefits of good distribution channel.
RESEARCH METHODOLOGY
METHODOLOGY
!he %esearch will be 1#ploratory %esearch. !he data will be collected through 688
retailers of -amsung India 0imited and 688 retailers of *icroma# *obiles.
SAMPLE SI:E
-ample will be around 688 retailers of -amsung India 0imited and 688 retailers of
*icroma# *obiles.
TOOLS OF ANALYSIS
I will use Juestionnaire *ethod. -ome of the softwareAs used for making this proHect will
be *s )ord and *s 1#cel. !he 2ata collected will be shown through /raphs and Pie
<harts.
SAMPLING
Con Probability <onvenient sampling method will be used to collect data.
DATA ANALYSIS AND INTERPRETATION:
!he data will be analyzed after collection.
DATA COLLECTION
-ource of 2ata for this proHect will be primary B secondary. !he primary data will be
collected through questionnaire filled from the respondents. In reference to the theoretical
concept as well as for information are collected through secondary sources from paper
published material i.e. newspaper, Hournal, annual reports and magazine B from printed
electronic media i.e. internet websites.
EXPECTED CONTIBUTION FROM THE STUDY:
2istribution channel is most important for the organizational growth. An organization
cannot survive without good distribution channel. !his proHect will help to understand
benefits of good 2istribution channel. I will also try to analyze the factors influencing
distribution channel of leading <ement *anufacturing companies.
LIMITATIONS OF STUDY
!ime will be the maHor constraint.
%espondents will be limited.
DIRECTION FOR THE FUTURE:
!his proHect will help the companies to improve their distribution channel. !his proHect
will also help the company to increase their sales. In future by following new ways
companies can improve their distribution channel.
CONCLUSION
After collecting and analyzing the data distribution channel of both the companies will be
compared.
SUGGESTIONS
-uggestions and recommendations will be given to the organization based on retailers
response and analysis
BIBLIOGRAPHY
Boo2,:7
5otler, Philip &388>'K *arketing *anagementL Pearson Prentice +all of India Pvt.
0td., Cew 2elhi.
-a#ena, %aHan &388E'K *arketing *anagement !ata *c/row +ill Publishing
<ompany 0td., Cew 2elhi.
*alhotra Cares 5.&388E'K *arketing %esearch &an applied orientation' pearson
Prentice +all of India Pvt. 0td., Cew 2elhi.
-hankar %avi &3889'K -ervices *arketing, &the Indian Perspective' 1#cel Fook,
Cew 2elhi.
We.,-te, :
www.samsung.com
www.microma#info.com