Channels for Perishable and Durable Goods-Agriculture and Industrial
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Transcript of Channels for Perishable and Durable Goods-Agriculture and Industrial
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Channels for Perishable and Durable
goods-Agriculture and Industrialgoods
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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
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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
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Contd«
Disadvantages:-
Long channels involved
Less economical
Less profit
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5/12/2018 Channels for Perishable and Durable Goods-Agriculture and Industrial - slidepdf.com
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Channel strategy
There are 3 broad option available for the distribution of the goods:
Intensive distribution
selective distribution
Exclusive distribution
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Perishable goods
Perishable goods are those goods which have a shorter life cycle andcannot be used repeatedly.
E.g:-
Milk
Food
Egg
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5/12/2018 Channels for Perishable and Durable Goods-Agriculture and Industrial - slidepdf.com
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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.
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5/12/2018 Channels for Perishable and Durable Goods-Agriculture and Industrial - slidepdf.com
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Distribution of mossila cake(Bangalore)
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5/12/2018 Channels for Perishable and Durable Goods-Agriculture and Industrial - slidepdf.com
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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 beingcompletely consumed in one use..
E.g:- Car
Furniture
Sports equipment
Consumer electronics .etc.
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5/12/2018 Channels for Perishable and Durable Goods-Agriculture and Industrial - slidepdf.com
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Distribution of durable goods
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5/12/2018 Channels for Perishable and Durable Goods-Agriculture and Industrial - slidepdf.com
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Agriculture goods
Meaning:-agriculture products are those products which are derivedfrom nature/agricultural activities and are of some value to the endconsumers.
Eg:-
Rice
Wheat
Tea.etc.
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Agriculture goods
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5/12/2018 Channels for Perishable and Durable Goods-Agriculture and Industrial - slidepdf.com
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Industrial goods
Meaning :-Industrial goods are those products which are bought/purchased by the other business for the manufacturing theconsumer goods.
Eg:- Heavy machineries
Iron
steel
coal
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Distribution of industrial goods
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5/12/2018 Channels for Perishable and Durable Goods-Agriculture and Industrial - slidepdf.com
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Factors effecting the channels of distribution
1.Product factors
y Unit value of product
y Customized or standardized product
y Perishable producty Technical product
2.Market factors
y Number of buyers
y Buying habits.
y Buying quantity.
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Contd«
3.Company factors.
y Goodwill
y Financial position of the company.
4.Government factors.
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