A

PROJECT REPORT

ON

DISTRIBUTION NETWORK

AT
“V2 COMPANY”

Submitted

By
GOVINDHARAM AKHIL KUMAR
H. T. No: 1325-18-672-129

PEOJECT SUBMITTED IN PARTIAL FULFILLMENTOF FOR THE

AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

Department Of Business Administration

AURORA’S PG COLLEGE (MCA)
RAMANTHAPUR
(Affiliated to Osmania University)
2018-2020
 DECLARATION

I GOVINDHARAM.AKHIL KUMAR bearing Roll No. 1325-18-672-129 student

of AURORA’S PG COLLEGE(MCA) hereby declare that the Project Report titled
“DISTRIBUTION NETWORK” submitted by me to the Department of Business
Management, Osmania University, Hyderabad. I also declare that this record has not
neither submitted to any other university nor published any time before.

G.AKHIL KUMAR
HT.NO:1325-18-672-129
 Aurora’s PG College (MCA)
Ganesh Nagar, Ramanthapur, Hyderabad-500013, Ph: 040-27030787
(Affiliated to Osmania University)

CERTIFICATE

This is to certify that the project report entitled “DISTRIBUTION NETWORK”

submitted in partial fulfillment for the award of MBA Programmer of Department of
Business Management, Aurora’s PG College, Ramanthapur, affiliated to Osmania
University, Hyderabad, was carried out by GOVINDHARAM. AKHIL KUMAR,
H.T.No: 1325-18-672-129 under our guidance. This has not been submitted to any
other University or Institutions for the award of any degree/diploma/certificate.

Mr. T. Shyam Sunder Mr. Ch. Satish Kumar Dr. M. Madhavi

Internal Guide Head of the Department Principal
 ACKNOWLEDGEMENT

This acknowledgement is a humble attempt to earnestly thank all those who are
directly or indirectly involved with my project and were of immense help to me. For
most i would like to express my sincere thanks to Principal of my college
DR.M. Madhavi and Mr.Ch. Sathish Kumar H.O.D of MBA department for giving
me this opportunity to carry out the project.

I acknowledge with the greatest courtesy the efforts taken by Mr. T. Shyam Sunder
my internal guide, who took genuine interest in my project when necessary. I would
also extend my thanks to others who helped me throughout the course of the project
with helpful suggestions. I would also thank to my parents and my friends for making
this Project success
 ABSTRACT

The paper discusses the distribution channels, their structural and functional
classification and the importance of intermediaries in the flow of goods between the
manufacturer and purchaser. Pointed to the rapidly growing share of electronic
distribution channels and the conditions of their market dominance in the medium
term. Logistic management, distribution channels, e-commerce Introduction. The
realization process of a marketing strategy of a company lies not only in achieving
specific production goals and a proper communication with recipients during
realization of the promotion phase. Its constant and very important factor is to provide
finished products to customers. A basic condition for achieving goals set out in the
trade is that the finished product meets the needs of the consumer, in particular it has
a suitable form and it is delivered at the right time and place. To be compliant with
this requirement means to take action and implement the elements included in the
marketing-mix, which is the distribution of goods — one of the processes of market
support, containing within itself all the decisions and actions related to the
manufacturer's communication with end customers. Intermediaries create marketing
distribution channel. Distribution channels can be also defined as marketing channels
or market channels. A distribution channel is a group of depended on each other
organization units, which are taking part in process of flow of products or services
form producers to buyers.
 1.1 INTRODUCTION

The American Marketing Association defines channels of distribution as “An

organization network of agencies and institution which, in combination, perform all
the activities required to link producers with users to accomplish the marketing task”.

Distribution is the physical flow of goods through channels: Channels are

comprised of a co-ordinate group of individuals or firms that perform functions
adding utility to a product or service .The major types of channel utility are place (the
availability of a product or services in a location that is convenient to a potential
customer); time (the availability of a product or service when desired by a customer
); form (the product is processed , prepared and ready to use in a proper condition
);and information (answer to questions and general communication about useful
product features and benefits are available).Since these utilities can be a basic source
of competitive advantage and product value , choosing a channel strategy is one of the
key policy decisions marketing management.

A distribution channel also called a marketing channel is the path or route decided by
the company to deliver its good or service to the customers. The route can be as short
as a direct interaction between the company and the customer or can include several
interconnected intermediaries like wholesalers, distributors, retailers, etc.

In an supply chain, a distribution network is an interconnected group of stroagee

facilities and transportation systems that receive interventories of goods and the
deliver them to customers. It iis an intermediate point to get products from the
manufacturer to the end customers, either directely or through a retail network.
 1.2 NEED FOR THE STUDY

Distribution channels play a decisive role in successful marketing of most products

specially consumer products. Distribution channel perform a wide variety of
functions.

1. Channel provides the distributional deficiency top the manufacturer.

2. They offer the products in assortments that are unable by and

acceptable to the users.

3. Channels provide vital input of salesmanship.

4. They help in merchandising.

5. They help implement the price mechanism.

6. They look after the physical distribution function and the financing
functions.

7. They also provide transfer of technologies and act as change agents.

8. The channel decisions have a vital bearing on decisions in all other

areas of market.

The need for the study is to evaluate V2 Company.

1.3 OBJECTIVES OF THE STUDY

1. To study the effectiveness of the distribution channels.

2. To study the mode of and method of transportation and transportation activities in

detail.

3. To study on how V2 Company encourages its dealers into performing their action.

4. To find out the satisfaction of intermediaries of distribution channels.

5. To find out the strength and weakness of distribution channels.

 1.4 SCOPE OF THE STUDY

The survey has been conducted in the city areas of Hyderabad, jubilee hills,
madhapur, in orbit mall, gvk mall etc. during the survey researcher met to
wholesalers, retailers for collecting the information. The project has the objective to
study the effectiveness of the distribution channel network of v2, it cover the study of
distribution network strength and weakness of distribution channel to find out the
satisfaction of intermediates and how v2 company encourages its dealers in to
performing their actions

1.5 RESEARCH METHODOLOGY

Research is the plan structure and strategy for investigation conceived to answer
research question and control variances. It is the overall operation pattern to
framework of project that stipulated the information to be collected from which
source by word procedure. What are the two possible sources of data for securing the
above mentioned information in the primary and secondary data.

Research design:-

A research design is generally a pure and simplified frame work and certain plane
for a study that will guide the collection and analysis of data where information
needed. The function of the research design is to ensure that the required data is
obtained and collected accurately and economically. Research design is basic frame
work, which provides guidelines for the best of research purpose. In short, research
design is planned structure and strategy of investigation conceived so as to obtain
specified answer or solution to research question and to control variance.

Data: - the collection of information is called as the data they are explained below

Primary data:-

Primary data was directly collected from the dealers of different brands of V2
Company in twin cities with the help of a structured questionnaire. the primary data is
very important source to make suggestions th the title obtained . This data can be
collected in various methods like survey, feedback, interviewing etc.
Secondary data:-

Secondary data was collected from the company profile, company brouchers, billing
invoices. this data is very important for the growth of the organisation, to predict the
future and will help to make the future plans.

Sample size:-

Sample size 50 dealers belonging to different areas was drawn

Period of study:-

Study is during the period of in the year 2019

Tools and techniques for analysis:-

The collected data is furnished in the form of purposeful tables. The tabulated data is
further analyzed with the help of percentage.

Bar diagrams and pie-charts are constructed for quick and easy understanding of data.

REVIEW OF LITERATURE

a literature review is an account of what has been published on a topic by accredited

scholars and researchers. In writing the literature review, our purpose is to convey
what knowledge and ideas has been established on the above –mentioned topic ,and
what are their strengths and weakness .

Peterson et al. (1997) stated that all marketing functions are carried out through three
distinctive types of marketing channels: communication channels, transaction
channels, and distribution channels. By definition, communication channels enable
the flow of various types of information between buyers and sellers. Transaction
channels realize ordering and payment activities between buyers and sellers, and
distribution channels facilitate the physical exchange of products and services
between buyers and sellers.

Stewart, Frazier, and Martin incorporated marketing functions into two types of
channels: communication channels and distribution channels. The latter has a broader
definition, meaning “a mechanism through which a product or service can be selected,
purchased/ordered, and received by a segment of the firm's customers.” Sometimes
distribution tasks are equal to marketing flows. Eight generic marketing flows exist,
namely, physical possession, ownership, promotion, negotiation, financing, risking,
ordering and payment. Physical possession refers to all storage activities, including
transportation between two channel members.

According to Cespedes (2006), demand generation, inventory storage, distribution of

goods, providing credit to buyers, after sales service, product modification and
maintenance are some of the functions that a channel performs. The channel member
also called as an intermediary is a member of the distribution channel excluding the
manufacturer and the consumer.

Almost one-fourth of all retail establishments in the United States are franchised,
accounting for about one-third of all retail sales. 58 In fact, as Cespedes & Corey
(1990) said that Channel management is supposed to be a cooperative marketing
strategy where manufacturers augment their direct sales channels with indirect
channels of distribution to reach different segments more efficiently and effectively.

Distribution Channels have become the most important component of marketing

today and are receiving increased attention. Channels not only add value to products
and services, but also create customer and shareholder value, brand equity and market
presence for a company. For most service organizations, consumer marketing and
industrial marketing firms, the distribution channel, or inter organizational network of
institutions, comprising of agents, wholesalers, distributors, and retailers play a
significant role in the flow of goods from producers to consumers.

According to Cespedes (2006), demand generation, inventory storage, distribution of

goods, providing credit to buyers, after sales service, product modification and
maintenance are some of the functions that a channel performs. The channel member
also called as an intermediary is a member of the distribution channel excluding the
manufacturer and the consumer.
Many firms viewed marketing channel strategy as somewhat of a "leftover" after the
more "important" product, price, and promotional strategies had been considered.
Although termed “the long neglected side of marketing” this attitude appears to be
changing. Millen (1963) said that there are six basic channel decisions with which the
marketing manager must concern himself or herself, and for which he or she might be
held responsible.

Distribution is the process to ensure the availability of final goods of right quality at
right place in right quantity at right price in time to satisfy the actual customer.

Distribution is to ensure brand availability by taking accurate orders ensuring optimal

stock levels ensuring efficient delivery service through right service frequency and by
on time in full (OTIF) delivery ensuring product and quality such as freshness and
appearance.

Distribution expansion by ensuring direct coverage in potential new markets, direct

coverage in the potential new outlets within existing routes, ensuring passive
distribution coverage through strategic wholesalers.

All the efforts made by the organization till the last moment of sale is only to ensure
the sale of company products, as sales figure is the key factor to measure the success
of a marketing company whether it is a manufacturing one or not. From the above-
mentioned definition of distribution in twenty first century, it is clearly seen that
selling of even diamond is quite impossible on one’s part if distribution system is
inefficient.

A major focus of channels of distribution is delivery. It is only through

distribution that public and private goods and services can be made available for use
of consumption. Producer of such goods and services are individually capable of
generating only the form or structural utility for their product and services. They can
organise their production capabilities in such way that the products they have develop
can, in fact, be seen analysed and sold in the market.
Philip Kotler “Marketing Channels are set of interdependent organisations involved
in the process of making a product or service available for used on consumption. They
are a set of pathways a product or service follows after production, culmination in
purchase and use by the final end user”

Ew cundif and RS stil “Channel of distribution is a path traced in the direct or

indirect transfer of the title to a product as it moves from a producer to ultimate
consumers or industries users”

Beckman “The course taken in the transfer of the title to a commodity constitutes its
channel of distribution. It is the route by the title to a product in its passage from its
first owner, an agricultural procedure or a manufacture as the case may be, to the last
owner, the ultimate consumer or the business user.”

American marketing association “A channel of distribution or marketing channel is a

structure of intra-company organisation, unites and intra company agents and dealers
and retailers through which a commodity product or service in marketed”

Small business entrepreneur “The manner in which goods move from the
manufacturer to the out let where the consumer purchases them; in some
marketplaces, it’s a very complex channel, including distributors, wholesaler, jobbers
and brokers”.

“A channel of distribution can be defined as the collection of organisation units,

institutions, or agencies within or external to the manufacturer, which perform the
functions that support product marketing. The marketing functions are pervasive: they
include buying, selling, transporting, storing, grading, financing, bearing market risk,
and providing marketing information. Any organisation unit, institution, or agency
that performs one or more of the marketing functions is a member of a channel of
distribution”.
Indian Distribution System:

It is also important to assess how the distribution task is being performed in India.
This task can be undertaken by measuring the number of functionaries in each class,
their organizational structure and their capital structure. The margins charged by them
would be a function of the quantum if goods moved and the population served by
them and services rendered by them and would also assist in the task if measuring
their performance. Dividing the members involved in each type of trade we can
briefly get an idea about the average productive capital required in each class of trade.
Having assessed the inputs, structure and size their distribution all over India we are
now in la position to assess how the task is being performed in terms of output.

Articles

ARTICLE-1

TITLE :-EVALUATING THE EFFECTIVENESS OF SALES AND

DISTRIBUTION SYSTEMS: A STUDY OF MARKETING INNOVATION

AUTHOR:- M.T. Cunningham & S.M.R. Hardy,

JOURNAL:- International Journal of Physical Distribution, Vol. 4 Issue: 3,

pp. 133-148
ABSTRACT

In the last decade increasing attention has been focused upon the newer and creative
areas of marketing such as consumer behavior new product development and the
Communications interchanges between producers and consumers. More recently, the
subject of distribution has been receiving a wider conceptual treatment as marketing
logistics than had been afforded to it earlier by operational researchers searching for
optimum rather than acceptable solutions. Managers have come to realize that not
only can substantial cost savings be achieved in the physical distribution area but that
the distribution function complements the selling activity at the interface between the
company and its customers. In the case of consumer goods these customers are the
channel intermediaries such as wholesalers, cash and carry operators, independent and
multiple retailers as well as the voluntary chains

ARTICLE-2

TITLE :-DISTRIBUTION CHALLENGES AND WORKABLE SOLUTIONS

AUTHOR: -Avinash G Mulky

JOURNAL:- Open Access funded by Indian Institute of Management Under a
Creative Commons license

ABSTRACT

An effective distribution channel can be a source of strategic advantage for

Companies. However, little research exists about the distribution channel Structure in
India, which is largely traditional and quite unique. The first this round table article
provides an overview of distribution channels Particularly their constituents and
structure, with a special focus on distribution channels in India. The second part of the
article reports on a panel discussion with eminent academic and industry experts on
the challenges that companies in India face in designing, constructing, and managing
distribution channels on the ground.

ARTICLE:-3

NEW TECHNOLOGY
TITLE:- AIRLINE SALES AND DISTRIBUTION CHANNELS
AUTHOR:- Peter S. Morrell 1, 1998
SOURCE: -Tourism Economics, vol 4, 1: pp. 5-19., First Published Mar

ABSTRACT:
Airline sales and distribution costs have been increasing faster than other costs over
the past decade, particularly travel agent commissions and incentive payments. At the
same time ticketless travel and the development of on-line services offer airlines an
apparent solution to the dilemma of achieving both increased market share and
reductions in sales costs It is argued here, however. Those travel agents will maintain
their dominant position in airline sales distribution, because they will continue to offer
the consumer the best response
to their disadvantages of small size, ignorance and immobility. This will involve
agents making full use of new technologies, offering a wider range of value-added
services, and moving to a pricing system which will be more acceptable to both
travelers and airlines.

ARTICLE:-4

De a marketing approach for customer retention

AUTHOR:- larry Rosenberg
JOURNAL:- larry j. Rosenberg.john.a.czepiel,(1984) A MARKETING APPROACH
FOR CUSTOMER RETENTION,journal of consumer marketing vol 1 issue2
ABSTRACT:-

Consumer marketing companies have lavished more resources on attracting new

customers than on satisfying old customers. In todays low growth and Highley
competitive market place how ever customer retention increasingly joints customer
getting as an important area of analysis and planning marketers can better cultivate
relationships with existing customers in these ways, designing an optimal customer
portfolio formatting a special marketing mix , and modifying marketing organisation.
the balancing of marketing efforts between winning new customers and hold in on to
old once will prove instrumental in pursing sales and profit growth.
 BIBILOGRAPHY

1. Marketing management -Philip Kotler

Analysis, planning, implementation and countries

2. Fundamentals of marketing -William j Stantion

3. Marketing management planning and

Implementation -V.S Ratna swamy

4. International marketing - Bill Richard

- M Alexander
- Cross James

5. Marketing Management “S.A. Sherleker”

6. Marketing “Dr. N. Ranjan and Sanjith R. Nair”
7. Research Methodlogy “C.R. Kothari”
Websites:-

www.indianjournals.com
www.koltermarketing .com
 BIBILOGRAPHY

1.Alderson wroe,factors governing the development of marketing channels, in

richardm.clewett,marketing channels for manufactured products, Richard D.irwin,inc
1954,pp5-22.

2.analysing and improveing marketing performance, (management report no 32)

American management association, newyork, 1959.

3.berg, thomas L. designing the distribution system, the social responsibilities of

marketing, americn marketing association, Chicago 1962 pp.481-499.

4. bijiapurkar ahok, effectiveness of the public distribution channel: the case of

controlled cloth distribution, FPM dissertion,marketing area, Indian institute of
management, ahmedabad ,1979.

5. gupta aravind ,public distribution of foodgrains in india, FPM dissertation

marketing area, Indian institute of management, ahmedabad,1977.