PROJECT WORK

ON
CHANAL OF DISTRUBUTION

Submitted by:
Name : Devnandan Mahapatra
Class: +2 2nd year
Roll No – IC-19-057
Registration No – BA32C19057

Project Guide:
Smt. K. kisan
Jr. Lecturer in commerce
Rajendra Higher Secondary School
Balangir

Rajendra Higher Secondary School,

Balangir
Academic Session 2020-21
 Certificate from the Guide
Pradip Kumar Pradhan

Lecture in commerce
Rajendra Higher Secondary School

Certificated that sri Devnandan Mahapatra of +2 2nd year

commerce bring Roll No IC-19-057 has completed his project file
under my supervision.

I also, certificated that, the project is in accordance with syllabus

issued by CHSE (O).

Signature of the Guide

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 Acknowledgement

I am thankful to Smt. K. kisan, my subject teacher of

business studies and management who gave the requisite guidance
for the completion of this project. I am also thankful to my parents,
friends, and the teacher who inspired me during the complaints of
my project work.

Signature of the student

Roll no –

[3]
 Contents
Sl. No. Title of work Page No.

I. Introduction 5

II. Discussion 6

III. Case study 11

viii. Conclusion 17

viii. Refferance 18

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INTRODUCTION

(1.1) About the topic

Here the study is about the channel of distribution which refers to that path through which the

ownership as well as possessions of goods transfers to the consumer from the producer. By

taking a Case study about the Amarnath Honda automobile showroom.

(1.2) Objective of the study

 Finding out different channel of distribution for a product like motor vehicle.

 The Factors that affect channel decision.

(1.3) Methodology of the study

 The study has been conducted by taking personal observation approach and interview

and meeting were done for analysis and interpretation of data.

 One on one structured interview has been taken from the manager and questionnaire

contains period of existence, geographical coverage and modes of Channels of

Distributions.

(1.4) Limitation of the study

 Every action has an equal and opposite reaction. So the study does have the same.

 The time constant for the study was limited and Geographical coverage is also small.

 It has done under certain analysis that is why it has some chance of human error.

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DISCUSSION

CHANNEL OF DISTRIBUTIONS

There are generally two types of channel of Distribution

Channel of Distribution

Direct Channel Indirect Channel

(2.1) What is direct channel or zero level channel?

 When the manufacturer instead of selling the goods to the intermediary sells it

directly to the customer. Then this is known as zero level channel. Some companies

which sells good through this median are

Bata shoes company

Eureka Forbes

Asian sky shop

Manufacturer Consumer

(2.2) INDIRECT CHANNELS

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 When a manufacturer gets the help of one or more middle man to move goods from the

production place to the place of consumption, the distribution channel is called indirect

channel. Following are the types of indirect channels with their respective diagram.

TYPES OF INDIRECT CHANNEL OF DISTRIBUTION

(2.2.1) One level channel

In this method an intermediary is used. Here a manufacture sells the goods directly to the

retailer instead of selling it to agents or wholesalers. This method is also useful for selling

FMCG (Fast Moving consumer Goods)

This channel is classified in the following diagram.

Manufacturer Retailer Consumer

(2.2.2) Two level channel

In this method a manufacturer sell the material to a wholesaler, the wholesaler to the retailer

and then the retailer to the consumer. Here, the wholesaler after purchasing the material in

large quantity from the manufacturer sells it in small quantity to the retailer. Retailers

available to the customer.

Manufacturer Wholesaler Retailer consumer

(2.2.3) Three Level channel

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 Under three level channels one more level is added to two level channel of in the form of

agent. An agent facilitates to reduce the distance between the manufacturer and the

wholesaler. Some big companies who cannot directly contact the wholesaler, they take the

help of agents. Then the agents sell the material to the wholesalers, the wholesaler to the

retailer and in the end the retailer sells the material to the consumer.

Manufacturer Agent Wholesaler Retailer Consumer

(2.3) Factors Affecting Channel of Distribution

There are mainly five factors affecting channel of distributions they are :-
A- PRODUCT related factors
B- COMPANY characteristics
C- COMPETITIVE factors
D- MARKET RELATED factors
E- ENVIRONMENTAL factors

(2.3.1) PRODUCT Related factors

When a manufacturer selects some channel of distribution he or she should take care of such

factors which are related to the quality and nature of the product such as, unit value of the

product technical etc.

(2.3.2) COMPANY characteristics

Company characteristics such as goodwill of the company. Control to channel of distribution,

financial strength. Like a manufacturer company enjoying goods reputation need not depend

on the middle men further open his own branches easily.

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(2.3.3) COMPETITIVE factors

i. Similar channel policy - for example, it the competing company chooses

chemists shops as the channel of distributions for the sale of its scented hair Oil,

this company will also choose the same channel.

ii. Separate channel policy - for example, if the competing company chooses its

channel of distribution of going door to door for the sale of its cosmetics, this

company chooses big retail stores.

(2.3.4) MARKET Related Factors

Some factors like factors of buyers, numbers of buyers, types of buyers, Buying habits,

Buying Quantity, Size of market etc. also affect the channel of distribution.

(2.3.5) ENVIRONMENTAL factors

Environmental factors like economic conditions and legal constraints affect the channel of

distribution, for example, during deflation businessman consider chessing small channel of

distributions useful because this channel costs less.

(2.4) What is physical distribution?

Physical distribution is to deliver the right goods to the right customer at the right time and

place. Physical distribution means the process of delivering the product to the user or

consumer promptly. Safely and in time physical distribution involves planning action and

control of the physical flow of the raw material and finished product from the points of origin

to the point of consumption to meet the customers need. Distribution of planning and

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accounting in bound transport receiving inventory management, in plant warehousing,

customer service, communication, those are the components of physical distribution.

The main compounds are:

 Order processing

 Packing

 Warehousing

 Transportation

 Inventory control

 Customer service

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 CASE STUDY

(3.1) Organizational profile

Honda motors and scooter factory (HMSI) in spread over 52 areas, with a covered

area of about 85815 square meter at Gurgaon district of Haryana. The foundation stone for

the factory was layer on 14the December 1999. The factory was completed in January 2001.

The initial capacity was 1 lakhs scooter per year, which has reached 6 lakhs scooter by the

year 2007 and the motor cycle capacity shall be 4 lakhs per annul. Te total investment outlay

for the initial capacity was 215 crores and now the accumulated investment is 800 crores.

Total investment outlay for the initial capacity was 215 crores and now the accumulated

investment is Rs. 800 Crores.

 Profit of Amarnath Honda

 Name of the Firm – Amarnath Honda

 Address – Gandhi Nagar pada, Balangir, Odisha

 Tell No – 9658132555

 Name of the owner – Narendra Kumar Sahoo

 No. of staff – 52

 Channel of distribution – two levels.

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(3.2) Product Mix

(3.2.1) Active 5G

Perfectly designed with technology Honda Active 5G is more than just a scooter. The tires

are tubeless and the seals the air leakage in case of a puncher to a puncher face rides. It has

comfortable and broad seat with powerful head light that brighter up the dark road for safe

ride.

ENGINE

Type – 7 Strokes, Single Cylinder

DISPLACEMENT - 110 cc

MAX POWER - 7.5 BHP @ 7500 R.P.M

ELECTRICALS

BATTERY – 12.5 AH

HEADLAMP - 35 WATT

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(3.2.2) UNICORN

POWERED BY A NEWLY DEVELOPED Honda 4.5 take 150cc engine and incorporating

many cutting edge technologies developed by Honda’s global R & D team. Union seats new

branch markets for premium motorcycles in India with its swift acceleration superior

mileage. Captivating style, riding comfort and convenience. Unicorn is engineered and styled

for the tastes of the younger generation having focused vision in lives with the 4 stroke, 150

cc engine delivering a whooping 13.3 bp, unicorn is the faster premium motorcycle in India

racing from 0 to 60 km ph in a more 5 seconds unicorn has a distinctive sporty and macho

design.

ENGINE

TYPE - 4.5 STROKES

Displacement - 150 cc

Max Power - 13.3 BHP @ 8000 RPM

Electricals

Battery - 12V

Head lamps - 35w

Brakes

Front - 240mm Disc

Rear - 240mm disc

Fuel Tank - 13 Litters

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 (3.3) Physical distribution of Honda

Honda

Authorized dealer

Buyer

This channel is used by Honda involving a single intermediary that is an

authorized dealer.

Honda

Amarnath Honda (Balangir)

DEALER SUB-DEALER FESTIVE DEALER

Khariar road Patnagarh Tushra

Bargarh road Titlagarh Lathore

Kantabanjhi Belpada

Loisinga Tikrap
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(4.1) SUMMARY

 From the above information it can be observed that Amarnath Honda, balangir as a

(Retailer) of Honda motor bikes is having three chat agonies of channel of distribution

i.e. Dealer, Sub-dealer and festive dealer. It is having two dealers in Khariar road and

Bargarh road. Dealer working as the channel to provide product to the consumers.

 From the study it can be observed that it is following two level channel of distribution

because the Geographical periphery of the market is not very big.

 As it is dealing with a durable product which is motor bike that is why it is not

following zero level channel decision in spite it is following 2nd level channel.

 As Balangir is a small district with conversance of 5.165 K.M only.

 It quite convent for the dealer to follow this level channel and dealer and sub dealer

level channels are seen here.

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 APPENDIX

QUESTIONNAIRE

1. What do you sell as your product?

Motor vehicle other

2. Do you have any branch in the Balangir Market?

Yes No

3. Which kind of agency you are?

Wholesaler Retailer Agent Manufacturer

4. How many channel of distribution do you have?

Zero One Two Three

5. How many sub dealers do you have?

6. Why do you use two level channel of distribution?

Low size of Market Limited geographical peniplacy

To reduce cost other

7. Why did not you use direct channel of distribution?

Product is perishable Product is durable

8. Do you use your own separate channel policy?

Yes No

9. In order to be a dealer is license as dealership needed?

Yes No

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 CONCLUSION
Distribution is essential for a company regardless of the market it relies upon. In order for a

business to be effective, goods or services need to be delivered to the end user through

specific channels which ensure the constant, professional flow of these goods.

A marketer needs to know these channels and to select the proper ones depending on the type

of goods he or she markets for and make sure they make the proper marketing decisions

based on the technical aspects of the selected channels and the proper delivery methods

specific for each of them.

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 BIBLIOGRAPHY

Books

Business Studies and Management V.K. publisher R.K. Singla

Websites

 WWW.Google.com

 WWW.Wikipedia.com

 WWW.Toppers.com

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