Channel Design Paradigm

W W W . W E B S I T E . C O M
Of
Aavin Ltd
Submitted By:
Anirudh 28/005
Abhinav Sharma 28/118
Rishibha Singla 28/069
Sumit Kumar 28/079
Adnaan Sandli 27/153
Roshan Negi 28/095
 About Company
Aavin Ltd is a milk product brand name of Tamil Nadu Co-
operative Milk Producers’ Federation Limited. It is an Indian dairy
company, which headquarter is in Chennai, Tamil Nadu, India.
TCMPF manage the activities such as milk procurement,
processing and marketing of the milk and milk products.

The company formed as an apex body of three tire cooperatives

set up in Tamil Nadu and the district level milk producer unions.
The Foundation of the Milk Co-operative Movement lies in the
conviction that country’s socio-economic development is
intertwined with the development of rural India.
The company has taken various measures such as payment of
attractive procurement price to milk producers, huge investment
in dairy infrastructure at all levels starting from Primary Dairy Co-
operative Societies, to State level Federation.
 Mission & Vision

Mission Vision
Heralding economic, To march forward with
social and cultural a missionary zeal this
prosperity in the lives will make Aavin a
of our milk producer trailblazer of exemplary
members by promoting performance and
vibrant, self-sustaining achievements
and holistic co- beckoning other Milk
operative dairy Federations in the
development in Tamil country in pursuit of
Nadu State total emulation of its
good deeds
 Steps of
Channel Design Paradigm
Recognize Need for Channel Design Decision
Distribution Network of Aavin Ltd:

Distribution channels are sets of interdependent organizations

involved in the process of making a product or service available
for use or consumption. The entire market is divided in 3 zones.
The zonal offices are located at Ahmedabad, Kolkata and
Chennai.
Recognize Need for Channel Design Decision
Distribution Network of Aavin Ltd:

Aavin Ltd. has come out with a unique concept of Parlours. They
have classified those under three types namely: ·
 On the Move
 Aavin Parlours
 Aavin Preferred Outlets
Modification required in existing channel strategy of
Aavin Ltd:
 According to us, Agent or broker should be added in
distribution channel after manufacturing company, making it
a 3 level channel. The products are stored at the Agents end
who are mere facilitators in the network
Set and coordinate distribution
objectives
 Our main objective of changing channel strategy is to
make available the product at right place in right quantity
and at right time.  
 It makes available the product offered by Aavin Ltd to the
consumer as per his requirement.
 Apart from the main objective, adding one more level to
the channel has other objectives like production and
safety of the product, quick disposal of the product at the
low cost, low inventory control of the channel and
marketing intelligence.
Specify the Distribution Tasks Needed to Meet Objectives

Facilitate a product return network

Provide readily available inventory

Provide Cost effective and time effective delivery.

Provide delivery within 24 hours after order

placement.

Making transactions as simple and cheap as

possible by establishing and managing efficient
exchange processes.
Develop Alternate Channel Structures
Choosing the “Best” Marketing Channel

• Perishable goods

• Smaller Channel

• Cost Effective

• Wider availability of products

• Beneficial to Farmers

• Lower risk
Evaluate the Relevant Variables

 Market (customer) variables

 Product (or services) variables
 Company (organizational) variables
 Intermediary (middleman) variables
 Environmental (exogenous) variables
 Behavioral (relationship) variables
SELECT THE CHANNEL MEMBERS
 The problem of selecting a suitable channel of distribution is
complex. Number of factors have to be considered for the
same. For Example : Product Consideration, Market Trend,
Competition Outlook, so for Commodity which is perishable or
fragile, a producer prefers very few controlled levels of
distribution. This decision is taken after careful analysis of
Dealers as well as their policies. Quality Limited can have retail
outlets as well as regional distribution centers so that it can
have a vast co-operative network.
 Quality even aims at achieving development of direct farmer
connect network to achieve sustainable growth. It also has
planned to enhance its product portfolio and consumer brands
which will ultimately lead to involving more retailers. It is also
expected to launch milk powder for retail customers in small
packaging. However, its ice cream distribution channel typically
consists of a distributor and a retailer since it is a perishable
good; so a relatively shorter distribution channel is needed.
 
 The retail network for milk consists of Aavin parlors, like
company owned or franchise outlets. However, other milk
based products like curd, milk powder, can be sold through
a wider distribution channel.
 While at the time of convincing the retail outlets, the
company is providing several benefits along with its brand
name.
 In the case of the dairy products, company can also entice
the retailers by providing free freezers for keeping the ice
cream. They can also attract them by showing their previous
records of turnover. Aavin Ltd. distribution Channel majorly
consists of supermarkets, bakery and general stores.
 And retailers can be attracted for the following reasons :
Quality, Price, Flavour and offers.
Thankyou