PAMPAPATHI PROJECT

AStudy

On

CHANNELS OF DISTRIBUTIONAT

MUNEER CARS, HOSPETProject report submitted in partial fulfillment of the

requirement for the award of Bachelor Degree in Business Management of Gulbarga University, GULBARGA.

By

T.PAMPAPATHIB.B.M. Final year

(Reg No.0855437)

Under the guidance of

Internal guide External guide

MR.SUMAN.N MS.MOUSEENA

(LECTURE) (HR MANAGER)

Hospet Theosophical societiesKumara G.Sudha Shankar Gouda Memorial

Theosophical college of management,Hampi road, Hospet-583201

MUNEER CARS

2009-2010

DECLARATION

I T.PAMPAPATHI Student of final year B.B.M, THEOSOPHICAL COLLEGE OF MANAGEMENT from Gulbarga University, GULBARGA. I here declare that this A Study on CHANNELS OF DISTRIBUTION AT MUNEER CARS, HOSPET“ is the result of my own project report entitled “efforts in the in-plant training which I have undergone as apart of curriculum leading to the award of Bachelor’s Degree in Business Management [B.B.M] under the noble guidance of MS.MOUSEENA (HR MANAGER).

I also declare that this project is the result of my own efforts and has not been submitted to this university earlier or any other university for the award of any degree or diploma.

I also declare that, I have fulfilled all the provisions of the covenant governing the in-plant training.

Place:- Hospet

Date:-

T.PAMPAPATHI

BBM Final year. 0855437

CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 2

MUNEER CARS

ACKNOWLEDGEMENTI am very glad to present this project report on “A Study on CHANNELS OF

DISTRIBUTION AT MUNEER CARS, HOSPET ”

At the outset, I would like to convey my sincere thanks to authorities of MUNEER

CARS, HOSPET, for permitting me to conduct the survey and to complete in-

plant training and write this report.

I take this opportunity to thank MS .MOUSEENA HR MANAGER MUNEER

CARS, HOSPET, and others who directly or indirectly helped me in the

organization and for their valuable suggestion by providing me all required data

for the study.

I wish to express sense of gratitude to our college principal and Library-Staff for

providing me necessary facilities in completion of this project report.

I take great pleasure to thank my parents who inspired me in completing the

project report successfully.

T.PAMPAPATHI

B.B.M FINAL YEAR

0855437


MUNEER CARS

CONTENTS Page noCHAPTER 1: INTRODUCTION -------------------------------- 05 - 07

1 Introduction to the study2 Objective of study3 Methodology4 Limitations of the study

CHAPTER 2: ORGANISATIONAL SET-UP --------------- 08 - 38

1 Company profile2 Various departments of the company3 Organization chart

CHAPTER 3: THEORETIAL FRAMEWORK ------------- 39 -47

1 Introduction2 Meaning of the CHANNELS OF DISTRIBUTION3 Need for CHANNELS OF DISTRIBUTION4 Importance of CHANNELS OF DISTRIBUTION

CHAPTER 4: DATA ANALYSIS AND INTERPRETATION 48 - 66

1 Analysis and interpretation

CHAPTER 5: FINDINGS AND SUGGESTIONS --------- 67 - 69

BIBLIOGRAPHY ------------------------------------------------ 70


MUNEER CARS

CHAPTER:1

INTRODUCTION


MUNEER CARS

INTRODUCTION

Marketing is the performance of Business activities that directs the flow of

goods and services from Producer to Consumers. Marketing is a total system of

business for a process. Which is continuous and it includes the following.

Knowing the consumer needs and translating them into products

services

Creating the demand for these products and services through

promotion and pricing

Servicing the consumer through planned marketing channels

distribution

Expanding the market when there is competition for it.

Thus the Channels of Distribution form as a vital component of Marketing. As

we see the different types of goods reach the consumers through different

methods or channels of distribution depending upon the particular commodity.

STUDY OBJECTIVE

1. this study and the report is made on Distribution Channels, and it is

presented for the purpose of project and filed distribution channels report

as a part of study to obtain B.B.M. certificate from Gulbarga University.

2. to understand the subject “Distribution Channel”

3. to understand the different Distribution Channels followed Practically

4. Observations and suggestions for future needs.


MUNEER CARS

METHODOLOGY ADOPTED

The field studyThe study was conducted at Muneer Cars situated in Sankalapur, Bellary Road

Hospet.

Study design The study is descriptive in nature. An attempt has be made in evaluate the performance of the industry.

Sources of Data

Both primary and secondary data has been collected. Primary data is been collected through discussion, interviews with concerned officers in the plant.

Secondary data is been collected through company records, books, magazines etc.

LIMITATION TO STUDY

There are certain limitations to be followed in every research work, the

limitations to this study are

A. The study relies upon the data, which was available in company recodes

and information provided by concerned officers in the industry.

B. The study is made for a period of one month. It is very less time to make a

detailed study of Distribution Channels. But I have done my sincere

attempt to cover it completely.


MUNEER CARS

CHAPTER:2

COMPANY PROFILE


MUNEER CARS

Introduction to Automobiles-History

The automobile as we know it was not invented in a single day by a single

inventor. The history of the automobile reflects an evolution that took place

worldwide. It is estimated that over 100,000 patents created the modern

automobile. However, we can point to the many firsts that occurred along the

way. Starting with the first theoretical plans for a motor vehicle that had been

drawn up by both Leonardo da Vinci and Isaac Newton

The first successful self-propelled road vehicle was a steam automobile invented

in 1770 by the French engineer Nicolas Joseph Cugnot. Later Nicolas August

Otto invented a 4 stroke gas motor engine in 1876.This engine operation formed

the basis of the future of the internal combustion engine. In 1855, Gottlieb

Daimler invented a gas engine that allowed for a revolution in car design as it

achieved speeds many more times than previous engine.

In the same year Karl Benz the German mechanical engineer designed and built

the world’s first practical automobile to be powered by an internal combustion

engine based on Otto’s design. It was a three wheeled machine. In 1886, Daimler


http://inventors.about.com/library/inventors/blnewton.htm

http://inventors.about.com/library/inventors/blda-vinci.htm

MUNEER CARS

took a stage coach and adapted it to hold his engine, there by designed the

worlds first four-wheeled automobile.

Some time later Daimler & Benz merged together to form a company Daimler Benz.

Cugnot’s steam wagon, 1870, Vienna, AustriaThe second (1771) version world’s gasoline-run vehicle #1 The Firs Marcus Car

Second Marcus Car of 1888 T-model Ford car parked outside Geelong Library At its launch

in Australia in 1915


http://en.wikipedia.org/wiki/Geelong,_Victoria

http://upload.wikimedia.org/wikipedia/commons/5/56/FardierdeCugnot20050111.jpg

http://en.wikipedia.org/wiki/File:MW1_signiert.jpg

http://en.wikipedia.org/wiki/File:MW2_05_02_24_klein.jpg

http://en.wikipedia.org/wiki/File:TModel_launch_Geelong.jpg

MUNEER CARS

First gasoline powered car Henry Ford first Quadra cycle car in America,The car was built byCharles and Frank Duryea

The Globe

With the increasing competitiveness of the auto market and rising costs many companies have joined the forces, been brought out or many new been created. The Estimated global passenger car production in 2005 was 66 million units.

[Source OICA (Organisation Internationale des Constructeurs D’automobiles]


MUNEER CARS

Major Manufacturers

General Motors Toyota Ford Honda

Volkswagen Chevrolet Skoda Hyundai

Suzuki Tata Fiat Mitsubishi


Industry Performance

Source: SIAM April, 2007

948574

885212

755708

593578

570863

1159499More than 100 % growth in 6 years

MUNEER CARS

India-Then & Now

Car Segmentation

With the expansion of Indian Automotive Market the car models have been

grouped into following segment based on price & size of cars and are accordingly

referred to industry communications

Based on the international way of grouping the cars in segments as per length

SIAM (Society of Indian Automotive Manufacturers)

A1 (Mini-Upto 3400mm) : Maruti 800

A2 (Compact-3401 to 4000mm) : Zen, Wagon R, Alto, Santro, Sail, A Star, I10, I20, Spark, Fabia, Swift

A3 (Mid-Size-4001to4500mm) : Swift Dzire, Accent, Aveo, Fiesta, Ambassador, SX4, Indigo, Ikon, Citi, Lancer, Optra

A4 (Executive-4501 to 4700mm) : Octavia, Contessa, Elantra, Mercedes,


MUNEER CARS

Corolla Civic

A5 (Premium-4701 to 5000mm) : Sonata, Mondeo, Accord, Camry, E-Class

A6 (Luxury-5001m & Above) : S-Class

C (Van Type) : Omni, Versa, Winger

B2 (Passenger Carrier) : Gypsy, Sumo, Safari

Car Companies in India Maruti

Fiat

GM (Opel,Chevrolet)

Ford

Hindustan Motors, Mitsubishi

Honda

Hyundai

Bajaj Tempo

Mahindra

Maini Elect

Mercedes Benz

Nissan

Skoda

Tata

Toyota etc

Top Three Manufacturers in Sales Maruti Suzuki

Tata Motors

Hyundai

Maruti Suzuki is a number two car maker. It makes more cars than the entire

competition put together!


1999-2000

44

45

11 0

A1 A2 A3

2006-2007

6.8

65

17.3

7.2

A1 A2 A3 A4,A5,A6 C

44.4 % Growth

57.3 % Growth

MUNEER CARS

Growth & Growth Factors:

GrowthThe Indian auto industry has been growing year after year at a very rapid

pace.The growth rate is not just large from India’s perspective but is one of the

largest globally. Many sources put Indian growth rate as second to only China.

Growth Factors Steady rise in income levels

Change in life style

Declining loan interest rates

Low tax & duties contributing to more affordable vehicle

US based consultancy, Keystone predicts that India will become World’s third

largest automobile market 2030.Overall size expected to exceed 20 million, with

compounded annual growth rate of over 12%.

MARKET TRENDS:


MUNEER CARS

An Overview of Maruti Suzuki India Limited

Maruti Udyog Limited (MUL), INDIA’S finest & Asia’s largest automobile industry was established in 1981 by

an act of parliament. MUL, the first automobile company in the world to be

honored with an ISO 9000:2000 certificate, is a subsidiary of Suzuki Motor

Corp(holds a 54% equity stake).The Govt of India remains a significant equity

stakeholder of 10%.With its early mover advantage in Indian market; Maruti

retains a dominant Market share despite increasing competition.

More than half the number of cars sold in India wears a Maruti Suzuki badge.

We are a subsidiary of Suzuki Motor Corporation Japan. We offer full range of

cars- from entry level Maruti 800 & Alto to stylish hatchback A star, Swift, Wagon

R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara.Since

inception, we have produced and sold over 7.5 million vehicles in India and

exported over 500,000 units to Europe and other countries.

Our turnover for the fiscal 2007-08 stood at Rs. 178603 Million, Yen 449 Billion, $

4.512 Billion * & Profit After Tax at Rs. 17308 Million. We were born as a

government company, with Suzuki as a minor partner, to make a people's car for

middle class India. Over the years, our product range has widened, ownership

has changed hands and the customer has evolved. What remains unchanged,

then and now, is our mission to motorise India. Our parent company, Suzuki

Motor Corporation, has been a global leader in mini and compact cars for three

decades. Suzuki's technical superiority lies in its ability to pack power and

performance into a compact, lightweight engine that is clean and fuel efficient.

The same characteristics make our cars extremely relevant to Indian customers

and Indian conditions. Product quality, safety and cost consciousness are

embedded into our manufacturing process, which we have inherited from our

parent company.


MUNEER CARS

Right from inception, Maruti brought to India, a very simple yet powerful

Japanese philosophy 'smaller, fewer, lighter, shorter and neater' From the

Japanese work culture we imbibed simple practices like an open office, a

common uniform and common canteen for everyone from the Managing Director

to the workman, daily morning exercise, and quality circle teams. To reach our

customers, we have built a strong sales network of 600 outlets spread over 393

towns and cities.

We provide maintenance support to customers through 2628 workshops spread

over 1200 towns and cities. In these competitive times the challenge is to keep

inventing newer ways of doing things to keep the customers in your fold. Over the

last few years, the company strengthened the existing practices and

experimented with many new initiatives by way of kaizens (continuous

improvements) to delight its customers. These initiatives ranged from product

design and quality to network expansion, and included new service programs to

meet unsaid needs of customers.

The company has retained its competitive edge by offering high quality products.

In the field, the products are supported by rapidly expanding networks. The

company has diverse networks for new cars, spares, service, pre owned cars and

so on, and all of them were in expansion mode last year to enable the company

get closer to the customer.


MUNEER CARS

Maruti Suzuki rolls out 1 car every 30 secThe company takes great pride in sharing that customers have rated Maruti

Suzuki first once again in Customer Satisfaction Survey conducted by independent body, J.D.Power Asia Pacific. It is 9th time in a row. The award

mirrors the company's commitment towards "Customer Obsession".


MUNEER CARS

Key Initiatives Car pickup & delivery facility for women car owners

Quote Unquote: "The study finds that vehicle pickup and delivery before and after

service has a strong impact on customer satisfaction. In particular, customers

who say that their vehicle was picked up from their doorstep before service and

delivered to the same point after service are notably more delighted with their

after-sales service experience, compared with customers who do not receive this

service...."

Setting up "Express Service Bays" & "2 - Technician Bays"As the name suggests the company set out to delight its customers by offering

them faster car service by introducing new concepts such as Express Service

Bays & 2- Technicians Bays. These are done for customers who are hard

pressed for time. Both the initiatives undertaken in this direction have helped

improve customer interface and also helped increase the productivity and

capacity of existing workshops.

Mega CampsThe company aggressively conducts 'Mega Camps' throughout the country round

the year. Activities undertaken during a mega camp include complimentary car

wash, AC & Pollution check up, oil and fuel top ups, wheel alignments etc. Apart

from mega camps workshop camps like A/C checkup camps, PUC and general

check-up camps, Locality camps , Pre monsoon camps etc are also regularly

conducted as part of customer connect initiatives.


MUNEER CARS

Service at your Door Step through Maruti Mobile SupportAnother unique initiative is the door step service facility through Maruti Mobile

Support.Maruti Mobile Support is a first of it's kind initiative and is expected not

only to help the company reach out customers in metro cities but also as a mean

to reach semi urban /rural areas where setting up of new workshop may not be

viable

MARUTI NEW INITIATIVES


MUNEER CARS

Vision & Core Values

Creating Customer Delight & shareholder’s wealth A Pride Of India

Visions of any company are those values on which the company works. As

MUL is started be governmental initiatives it tends to be more consumer oriented

and hence cost effective, but on the other hand Suzuki’s participation ensures not

only profit, but of the need of maximum profit. The only way for this Nora’s

dilemma of selecting principals for company’s working vision, was to maximize

profit and reducing cost by maximizing output and hence MUL declared its vision

as “The leader in the Indian Automobile Industry, Creating Customer Delight and

Shareholder’s Wealth, Eventually become a pride Of India”

Customer delight is making sure that performance, after sales service and

customer support are best and beyond expectation. Shareholder’s wealth is the

prime concern of running business smoothly. MUL knows this and understands

“Customer Is King”, he can change the fortune of any company, hence goes

company’s brand line “COUNT ON US”


MUNEER CARS

Milestones & Amazing Facts

Formed in October 1982 with the signing of a joint venture between the

Government of India and Suzuki Motor Corporation.

Launched India's first ever people's car, which is today India's largest

selling car !

3 production plants at Gurgaon Haryana & 1 in Manesar.

On average a car rolls out every 30 seconds.

More than 1 in every 2 cars sold in India today is a Maruti Suzuki.

March 1994 - First Indian company to produce over one million vehicles.

April 2003 - Produced 4 millionth vehicle.

April 2005 – Produced 5 millionth vehicle

The Change Of company name from Maruti udyog Limited to Maruti

Suzuki India Limited

2007 – JD Power Survey awarded for 7th year.

2008 – Alto crosses 1 million Cars

2008 – Swift crosses 2,50,000 sales unit

2008 – Car Manufacturer Of the Year

Launch of Worlds strategic model A Star

Special Commendation to the Indian Auto Industry – A tribute to MSIL’S

Silver Jubilee

MSIL adopts voluntary fuel disclosure

Setting Standards

The first automobile company in the world to get A.V. Belgium ISO 9001:2000 Certification for quality standards & procedures

Nov 1999 The first passenger car company in India to get certified for Environment Management System (EMS) as per ISO 14001:1996


MUNEER CARS

Among the countries 5 most respected companies and the countries most respected automobile company

The only car company in the world to be market share leader and the leader in customer satisfaction in service, in the JD Power CSI Survey

More then just car manufacturers a responsible corporate citizen constantly taking initiatives in areas of Environment, Social welfare, Traffic Safety, Education, Children welfare.

Sales & Market Share:


Some Milestones - Pride Pointers

(As on June, 2007)

Network LeadershipDealer Sales Outlets

224

Dealer Extension Counter 120

96

223

592

1841

1175

397

MUNEER CARS


MUNEER CARS

MARUTI SUZUKI SPREAD OVER GLOBE


MUNEER CARS

MARUTI SUZUKI - Product Range

a) Omini b) Wagnor

- Fit all - For a smarter race

Mrp : 2.80lacs Mrp : 5.13lacs Length : 3370mm Length : 3520mmWidth : 1410mm Width : 1490mmHeight : 1640mm Height : 1690mmFuel : 36ltrs Fuel : 35ltrsSeat : 5-8seats Seat : 5seats

c) Alto d) Versa

-Let’s go - The joy travelling together

Mrp : 3.27lacs Mrp : 5.60lacsLength : 3495mm Length : 3675mmWidth : 1475mm Width : 1475mmHeight : 1460mm Height : 1905mmFuel : 30ltrs Fuel : 40ltrsSeat : 5seats Seat : 8seats


MUNEER CARS

e) A-star f) Swift

- Where is your fire - You’re the fuel


g) Swift Desire h) Zen Estilo

-The heart car - Take a fresh view of life



MUNEER CARS

i) Maruti 800 J) Maruti Sx4

- Change your life - Men are Back


k) Grand vitra

-Play it your way

Mrp : 18lacsLength : 4470mmWidth : 1810mmHeight : 1695mmFuel : 66ltrsSeat : 5seats


MUNEER CARS

Introduction to Muneer Cars-Profile

“MUNEER CARS” (A Unit of M/s. Muneer Enterprises Pvt. Ltd,) was

formed in the year 2006-07. It is dealership of cars of M/s. Maruti Suzuki India Limited” for Bellary, Koppal and Raichur Districts. It also provides after sales-

service for its esteemed customers. M/s. Muneer Cars is having its Pre Owned Cars Division, which has activated from Aug 07’. The dealership has an outlet in

Raichur which was activated in the month of July 08’.


MUNEER CARS

The dealership has bagged the best infrastructure award for whole of south of

India by Maruti Suzuki India Limited declared in Athens, Greece during the

Annual meeting.

The dealership provides well furnished clean & healthy infrastructure for its

employees to work with comforts and for their esteemed customers for their easy

& comforts. The dealership is located in the outskirts of Hospet. It also has a


MUNEER CARS

stock yard for their newly as well pre owned purchased vehicle. It also provides

huge parking place for serviced vehicles too.

The dealership also provides facility for their customers for Pooja & for other

related activities. A Separate place in the showroom is allotted for that. Following

is the performance snap shot of Muneer Cars in Sales.

Brief Profile of Muneer Group

We are pleased to take this opportunity to throw light on the state of affairs

carried on by our different firms in different fields since 1960.

To start with we have initiated our business by entering into in

manufacturing of tractors drawn agricultural implements such as 2 furrow MB

ploughs, Tillers, Blade, Harrow Cum Levelers, Paddy disc, Harrows etc.,

especially our M.B.Ploughs hit the market with a bang in the whole state of

Karnataka and reached the horizons of Andhra Pradesh and Maharashtra. Our

firms name has become synonymous with quality HOSPET PLOUGH. We have

gained the confidence of our valued farmers. This trade is being carried on in two

different names namely “M/s. GRAND LATHE & WELDING WORKS” AND “M/S. GREEN AGRICULTURAL IMPLEMENTS MANUFACURERS”.

The financials status is as follows.

A]. M/s. Grand Lathe & Welding Works.

B]. M/s. Green Agricultural Implements Manufactures


FINANCIAL YEAR

TURNOVER (in Lakhs)

2002 – 03 55.542003 – 04 42.712004 – 05 68.762005 – 06 73.692006 – 07 97.252007 – 08 102.00

MUNEER CARS

FINANCIAL YEAR TURNOVER (in Lakhs)

2003 – 04 39.002004 – 05 45.782005 – 06 58.602006 – 07 90.872007 – 08 98.00

In the year 1979 we have entered into an Iron Ore Mining business by trade name “M/s. MUNEER ENTERPRISES” being our major flagship. In the first

decade it carried on a lot of development works systematically and successfully

to cape up the market as it was at its nadir. Now “M/s. Muneer Enterprises having a STAR TRADING HOUSE STATUS” has reached its culmination point

and it one of the Major Exporters of Iron Ore to China.

The financials status is as follows

C]. M/s. Muneer Enterprises.

FINANCIAL

YEAR

TURNOVER (in

Lakhs)

2002 – 03 55.622003 – 04 2,550.002004 – 05 5,064.752005 – 06 11,406.002006 – 07 11,564.002007 – 08 13,500.00

It is proud to say that Muneer Enterprises has bagged special award for

outstanding exports from CAPEXIL for the consequent two years 2005-06 and

2006-07. We also have been selected as the best Exporters by the Department

of Ports and Inland Water Transport, Karwar for the consequent two year 2005-

06, 2006-07 and 2007-08. We are optimistic about quality and quantity in the

uptrend in future.


MUNEER CARS

In the year 2002 the group has expanded further in the automobiles field

and formed “M/s. MUNEER MOTORS” started dealing in world famous tractors

by name “JOHN DEERE TRACTORS” and “Balkar Harvesters”.

Year Tractor’s Sales Harvester’s Sales

2002-03 41 -

2003-04 55 -

2004-05 94 -

2005-06 223 25

2006-07 159 37

2007-08 159 38

Total 731 100

This business is on the ascending trend and also this firm has taken over the

following in the recent years.

C & F work of “M/s. J.K. TYRES”, which have proved successful business

results.

Dealers for “ASIA MOTORSWORKS LTD.” FOR SPARES, SERVICE AND SALES OF HEAVY COMMERCIAL VEHICLES, ASIA MOTORS WORKS ARE the first Indian 49 toner vehicle manufacturer. And has

come up with more than 10 Models for different applications. Total Sales

of AMW Tippers is 165 Nos. as on date.

M/s. Muneer Motors is directly associated with “M/s. VOLTAS LIMITED” (A TATA Enterprises) in Mining and Construction Equipment Division for

Spares, Service Sales &Marketing of Hyundai make Crawler

Excavators, Wheel Excavators & Wheel Loaders. Total sales of Hyundai

Excavators is 19 Nos. as on date.

The financials status is as follows.

D]. M/s. Muneer Motors


MUNEER CARS

FINANCIAL YEAR TURNOVER (in Lakhs)

2002 – 03 94.562003 – 04 268.372004 – 05 440.602005 – 06 920.402006 – 07 888.002007 – 08 1020.00

For the last year we have been awarded with “Best Dealership Award for Hundred Club” from John Deere Equipments (p) Ltd., for the sale of highest

number of tractors in Karnataka. On 30th September 2005 we have floated a new

company by name “M/s. Muneer Enterprises Pvt. Ltd.”

In the year 2006 – 07 “MUNEER CARS” (A Unit of M/s. Muneer Enterprises Pvt.

Ltd,) is formed being got the dealership of cars of M/s. Maruti Suzuki India Limited” for Bellary, Koppal and Raichur Districts. We have bagged the best

infrastructure award for whole of south of India by Maruti Suzuki India Limited

declared in Athens, Greece during the Annual meeting. Within a span of six

months, we could manage to sell about 335 vehicles though it is in infancy period

which is an achievement we have got the state of the Art service division to cater

to the needs of our valued customers.

M/s. Muneer Cars is having its Pre Owned Cars Division, which has got

activated from 15’Aug, 07’ which is doing fairly well. From the beginning of

Showroom we have sold out 906 Nos. of cars as on date.

The Group has proposed to set up the following projects under M/s. Muneer

Enterprises Pvt. Ltd.

Sponge Iron plant

Pelletisation Plant

Mineral Processing Plant

Power Plant etc.

MUNEER ASSOCIATES:


MUNEER CARS

We are authorized distributors of Hindustan UniLiver Limited for Bellary, Koppal &

Raichur districts. We have started this firm on February 2007 and it is going well.

MUNEER CONSTRUCTION EQUIPMENTS : It is a unit of Muneer Enterprises Pvt. Ltd.,. and authorized dealers for Escorts

Construction Equipment Pvt. Limited. To provide sales and services for Cranes,

Articulated Boom Cranes, Slew Cranes, Vibratory Compactors, Forklift, Tandem

Vibratory Compactors, Crawler Cranes, Tower Cranes and Loaders.

TOTAL FINA ELF INDIA LTD:It is a Unit of Muneer Enterprises Pvt. Ltd., and authorized distributor of Total

Fina Elf India Ltd. for North Karnataka. We have started this firm on February

2008 and it is going well.

VISION & MISSIONVisions of any company are those values on which the company works.

The Core values of Muneer Cars are Integrity, Passion to Deliver Excellence, Spirit of Entrepreneurship, Innovation & Creativity. We must always conduct

our business with fairness, honesty & transparency. So that we can at all time

stand public Scrutiny. We will never undermine the heritage of trust that comes

with the Muneer Brand. All our activities must be driven by a passion to deliver

excellence. We must strive uncompromisingly to achieve the highest standards in

our daily work and in the quality of goods & service we offer. We would

encourage innovative ideas for individuals and organizational development. This

thinking would be fostered, encouraged 7 recognized for enhancing business. We

would take delight in stretching our goals and each of us would have scene of

ownership and responsibility for all our business dealings.


MUNEER CARS

VISION“TO BECOME THE SINGLE DEALER WITH LARGEST CHAIN OF SALES &

SERVICE NETWORK SCIEZING OPPORTUNITIES TO ACHIEVE

AGGRESSIVE & PROFITABLE GROWTH WITH THE BEST DEALER STATUS

& EMPLOYEE RETENTION.”

MISSION“MARKET SHARE, NEW MARKET PENETRSTION, CUSTOMER DELIGHT,

GROWTH IN SALES SUPPORT, SERVICE UNLIMITED”

(Source: Personal Interview with Mr Syed Ehtesham-COO)

ORGANIZATION CHARTMr Syed Nazimuddin

Chief Operating Officer (COO)

Mr Syed Ehteshamuddin

Deputy General manager (DGM)

Mr Sreenivas Reddy K

Human Resource Customer Care Accessories New Car Sales True Value Back Office Accounts


MUNEER CARS

Human Resource Manager

Customer Care Manager

Accessories Manager

New Car Sales Manager

True Value Manager

Back End Support Team

Accounts Manager

HRE's CCE's Advisor's Team Leader Team Leader EDP,File Maintainance Accountants

DSE'sDSE,RF Co-Ordinator,

EDP,Evaluators

SALESTotal Sales (FEB & MAR 07 ) - 69

2006-07

0

5

10

15

20

25

30

2006-07

2006-07 9 12 24 6 7 10 0 1 0 0 0

M800 Omni Alto Estilo Wagon R Swift A Star Estee

m Dzire SX4 Grand Vitara

Total Sales (2007-08 ) - 679


MUNEER CARS

2007-08

0

50

100

150

200

250

2007-08

2007-08 71 147 208 37 58 135 0 2 4 17 0

M800

Omni

Alto Estilo

Wagon

Swift

A Star

Esteem

Dzire

SX4 Grand

Total Sales (2008-JAN 09 ) - 687

2008 - Jan 09

0

50

100

150

200

2008 - Jan 09

2008 - Jan 09 55 159 151 23 66 164 13 0 51 4 1

M800

Omn

Alto

Estilo

Wag

Swift

A St

Estee

Dzire

SX4

Gran

INITIATIVES

Mega Sales & True Value CampsThe company aggressively conducts 'Mega Sales & True Value Camps'

throughout the authorized areas round the year. Activities undertaken during a

mega camp include Test Drives for New & Old Cars, Comparison b/w Maruti

Suzuki & Competitors, Test drives are also given at the corporate sectors to grab

the highly potential customers as test drive is the major activity in sales process.

Free Check up Camps for Maruti Suzuki Customers are also regularly conducted

as part of customer connect initiatives.

Muneer Cars Limited EditionsTo bridge the gap between the variants & to provide fully loaded top end versions

to their esteemed customers Muneer Cars initiated towards MC Editions using


MUNEER CARS

aruti’s Genuine Accessories. Muneer Cars Stands 1st all over India in the sale of

MGA, It has set a benchmark by selling approx an avg around Rs 10,000/-

accessories per car every month.

Employees RetentionMuneer Cars also takes initiatives to retain their employees whom they feel as

their strengths by providing them healthy atmosphere to work along with pick up

& drop facility for Women workers with attractive pay structure & incentives for

every individual every month along with annual bonus. They have also set up

canteen for their employees and customers.

Car pickup & delivery facility for ServiceQuote Unquote: "The study finds that vehicle pickup and delivery before and after

service has a strong impact on customer satisfaction. In particular, customers

who say that their vehicle was picked up from their doorstep before service and

delivered to the same point after service are notably more delighted with their

after-sales service experience, compared with customers who do not receive this

service...."

CHAPTER:3CHANNEL OF DISTRIBUTIONTHEOSPHICAL COLLEGE OF MANAGEMENTHOSPET Page 39

MUNEER CARS

THEORETICAL FRAME WORK

MEANING AND DEFINITION

The term” Channel” is derived from the French word ‘Canal’ which means

artificial waterway for transportation or irrigation. So, “Channels of Distribution

refers to the path way, path or route taken by goods as they move or flow from

the point of production to the point of consumption. Shortly saying, it is the

pipeline for goods in their flow from Producer or Manufactures to final consumers

of Industrial users.

Various marketing experts have given several definitions, Philip Kotler who is

rightly called as the father of Marketing defines Marketing Channels “as a set of


MUNEER CARS

interdependent organizations involved in the process of making a product or

service available for use or consumption.”

According to professor W. Stanton ‘”Channels of Distribution is the route taken

by the title to the goods as they move from the Producer to the ultimate

Consumer or Industrial user”.

IMPORTANCE AND FUNCTIONS OF CHANNELS OF DISTRIBUTION

Channels of distribution play a very significant role in Marketing of goods.

Through proper channel effective reach by their intermediaries play an important

role in promoting the brand.

Distributors by making the products available to the target population, in the

most cost effective way at the right time & at the right place in a right way help

the company gain their market share.

For Market penetration for niche products and some of the goods Channels of

Distribution is important for brand building, increasing sales and to gain more

profit by proper coverage of market segment that company’s product is

positioned.

For balancing demand and supply the channels of distribution plays an

important role.

THESE CHANNELS PERFORM THE FOLLOWING MARKETING FUNCTIONS IN THE PROCESS OF DISTRIBUTION

i. The searching out of buyers and sellers (Contracting)

ii. Matching goods with the requirement of market (Merchandising)


MUNEER CARS

iii. Offering products in the form of assortments or packages of items

usable and accepted by the consumers or users.

iv. Persuading and influencing the prospective buyers to favor a certain

products and its makers (Personal selling/Sales promotion)

v. Looking after all physical distribution.

vi. Persuading and influencing the prospective buyers to favor a certain

products and its maker.

vii. Offering pre-sale and after sale service to the customers

viii. Providing feedback information, marketing intelligence and sales

forecasting services for their regions to their suppliers.

ix. Offering credit to retailers and customers.

x. Risk bearing with reference to the stock holding / transport.

COMPONENTS OF CHANNELS

1. All kinds of merchant middlemen such as wholesalers and retailers.

2. All kinds of agent middlemen such as commission agents. Brokers,.

Housekeepers and so on

3. All other facilitating agencies such as carriers, advertising agencies and

son on.

CHANNELS OF DISTRIBUTION

There are two types of channels of distribution they are as follows

1) Consumer Marketing Channel

2) Industrial Marketing Channel.

Consumer Marketing Channel: there are five channels in the consumer-marketing channel


MUNEER CARS

Manufacturer-Consumer (Direct sale)

It consists of manufacturer selling directly to the final consumer. The direct

selling channels are Door selling, Mail Order Telemarketing. TV selling, Retail

shops of manufacturer.

Manufacturer- Retailer- Consumer

This channel is used when buyers are large retailers. Ex: Departmental store,

Discount stores, Discount house, Chain stores, Super market, Co-Operative

stores.

Manufacturer- Wholesaler- Retailer- Consumer

In this channel manufacturer uses the two intermediaries i.e. Wholesaler-

Retailer for distribution of his products to consumer.

Manufacturer- Agent- Retailer- Consumer

In this channel producer uses the service of an agent middlemen such as a

sole selling agent.

Manufacturer- Wholesaler- Consumer

In this channel producer uses the wholesaler as a middlemen for the purpose

of the distribution of the product.


MANUFACTURER OR PRODUCER

Retailer

WholesalerAgent

Wholesaler

MUNEER CARS

INDUSTRIAL MARKETING CHANNEL:

industrial goods manufactures can use its sales force to sell directly to industrial

consumers (direct selling),

Manufacturer of industrial goods can sell to industrial distributors who sell to the

industrial customers.

Manufacturer can sell through his representatives.

He can sell through his own sales branches directly to the industrial customers.

He can sell indirectly to industrial customers through industrial distributors.


FINAL CONSUMER OR USER

Retailer Wholesaler

Retailer

MANUFACTURER

Manufacturer representative.

Manufacturer sales branch.

MUNEER CARS

CHANNEL CHOICE :

The problem of selecting the most suitable channel of distribution for the

product is complex. The most fundamental factor for channel choice and channel

management is economic criteria viz. Cost of profit criteria. The organization is

interested in cost minimization in distribution and assurance of reasonable profit

margin.

SELECTION OF CHANNELS OF DISTRIBUTION :

There is no single best channel suitable for all types of manufactures or

producers for all types of products. Under all circumstances. So the selection of

the channels of distribution is the most difficult problem faced by manufactures or

producers. The various factors that influence the selection of channel of

distribution by producer are:

PRODUCT CHARACTERISTICS: product characteristics refers to the

various characteristics of a product, such as its class (whether it is

consumer product or industrial product), its nature (whether it is durable or

perishable product), its bulk and size, its use, its price, the rapidity of

fashion change, the frequency of its purchase, etc. for example,

perishable goods must be placed in the hands of consumers as quickly as

possible, so they require direct selling


INDUSTRIAL USER

INDUSTRIAL DISTRIBUTORS

Manufacturer sales branch.

MUNEER CARS

CUSTOMER CHARACTERISTICS: Customer characteristics refer to the

number of potential buyers, their geographic description, their frequency

and regularity of purchase, their average purchases, there buying motives

etc.

MIDDLEMEN CHARACTERISTICS: it refers to the number of middlemen

available for distributing the products, their willingness to undertake the

work of distribution, their sales potentiality, their behavior etc.

SUPPLY CHARACTERISTICS: it refers to the number of producers or

suppliers, their concentration or dispersion, the quantum of their suppliers

etc.,

DISTRIBUTION POLICIES OF PRODUCERS: A concern may adopt the

policy or practice of intensive distribution or maximum distribution (i.e.

distribution of products through as many channels as possible) or selective

distribution (i.e. through selected number of intermediaries) or limited

agency distribution (through few agencies) or exclusive agency distribution

(thorough single agency).

CHANNELS OF RIVALS: while selecting the channels of distribution, the

effectiveness of the channels of distribution adopted of rivals should be

studied. If rivals adopt effective channels, you are preferable to adopt

some channels of distribution.

COMPANY CHARACTERISTICS: it refers to the various characteristics of

manufacturing company, such as its size, financial position, and product

mix, for example, a big concern with strong financial position engages in

direct selling.

ECONOMIC CONDITIONS AND LAWS OF COUNTRY: economic

conditions influence the selection of channels of distribution for instance;


MUNEER CARS

when economic conditions are depressed shorter channels are preferable.

Similarly, the laws of country also influence the selection of channels of

distribution. For example, when there is multi point tax on sales, naturally

direct selling to consumers or through middlemen is quite common.

COST OF MARKETING CHANNELS: the relative costs of various

channels of distribution also influence the selection of channels of

distribution. Generally producers choose the channels, which ensure

efficient distribution and secure the desired sales volume at the lowest

possible costs.

MIDDLEMEN IN DISTRIBUTION : There are two types of middlemen in distribution

Merchant Middlemen

Agent Middlemen

Merchant middlemen buy and sell goods on their own account and at their

own risk of loss, example wholesaler and retailer.

Where as Agent Middlemen who do not take ownership title to goods but

actively negotiate the transfer of ownership right from the seller buyer.

MARKET COVERAGE : Once the company decides the general channels to be used, it has to

decide all the number of middlemen in each channel, i.e. intensity of channels of

distribution. There are three alternatives among the company must choose the

best alternative. The decision made after careful analysis of product, consumers,

dealers, company objective and policies, and the conflict within the channels and


MUNEER CARS

my other relevant factors. The company resolves channels and brings the

product in the market.

The three alternatives are as follows:

EXTENSIVE DISTRIBUTION: we have maximum number of

retail outlets for mass distribution convenience goods. As consumer demand

immediate satisfaction and that too at the most convenient retail shops.

Extensive or broadcast distribution is essential when the price is low, buying is

frequent and brand switching is common phenomenon Extensive

distribution secures rising sales value, wider consumer recognition and

considerable impulse purchasing. But it creates problem of motivation and

control and it may generate unprofitable sale due to higher marketing costs.

SELECTIVE OR LIMITED DISTRIBUTIONS: when special

services are needed, e.g. TV sets as a right prestige image is to be created, we

have selective distribution. The number of outlets at each level of distribution is

limited in given geographical area. When we have limited number of middlemen.

They can spend more on sales promotion and offer maximum co-operation in the

company’s promotion campaign. If the product has long life and consumer brand

presences can be established, selective distribution will be more profitable.

EXCLUSIVE DISTRIBUTION: if the amount of product sere accepted by

final buyers is considerable, exclusive distribution is preferable. Here, we have

one retailer and wholesaler for a given market not only brand preferences but

also brand insistence and consumers refuse to accept substitutes, selective or

even exclusive distribution is feasible.


MUNEER CARS

CHAPTER 4:

DATA ANALYSIS AND INTERPRETATION

TABLE 1

Table showing markets response towards Muneer cars products.


MUNEER CARS

ANALYSIS

From the above table it is seen that the maximum number of respondents, 30, have a good opinion regarding the markets demand over muneer cars product. While 10 respondents believe that the market response is excellent while other 10 believe that market response is satisfactory.

CHART 1


Particulars Number or Respondents

Percentages

Excellent 10 20%

Good 30 60%

Satisfactory 10 20%

Poor - -

Very Poor - -

Total 50 100%

MUNEER CARS

INFERENCE

Understanding Markets response for a product is very crucial task. Market response makes us understand loopholes of product. Hence it is PRODUCT MARKSHEET.

From the above chart it is inferred that most of the respondents believe that muneer cars have very good market response and hence its demand is found to be ever green.


05

101520253035

10

30

10

0 0

Chart depicting markets response towards muneer car products.

Excellent Good

Satisfactory Poor

Very poor

SATISFACTION LEVEL

No. o

f res

pond

ents

MUNEER CARS

TABLE 2

Table showing location of sales with regard to distributors of Muneer cars .

Particulars No. of Respondents Percentage

Urban 22 54%

Rural 18 46%

Total 50 100%

ANALYSIS

From the above table maximum number of respondents,

44 % have their sales location in urban market while about 36 % of rests

have their sales in rural market. Urban markets include localities with

Population above 50,000. While rural markets assumed below Population of

50.000

CHART 2


MUNEER CARS

INFERENCE

Segmenting the various locations where sales occur may determine the

need to improve upon reaching potential markets. Segmentation helps

systematic approach towards strategic decision making in marketing.

From the above chart it infers that Muneer car has its strong base in urban

market while the scope in rural market is yet to be improved. However the

present status is satisfactory.

From the above chart it infers that maximum market share is grabbed by

muneer and no competitor stands near by with a difference of around 20 %.

muneer cars thus have large scope with remaining 66 % of remaining

market.

Table 3


44%

36%

Chart depicting location of sales with regard to distributors of muneer cars.

Urban Rural

MUNEER CARS

The time period of association of distributors With Muneer cars.


Below 1 year 21 42%

1-2 years 18 36%

2-5 years 7 14%

More than 5 years 4 8%

Total 50 100%

ANALYSIS

From the above table maximum number of respondents, 21 were associated with Muneer cars below the time period of 1 year. While 18 respondents were associated from 1-2 years. But very less number of distributors were associated with muneer from 2-5 years and more than 5 years i.e. 7 and 4 respondents respectively.

CHART 3


MUNEER CARS

INFERENCE

The number of distributors increases when they find a Brand working extremely well. Thus this symptom should be analyzed to know growth parameter.

The chart shows that there is rapid increase in the number of distributors from past 5 years. This shows that brand is very well accepted in market and more distributors are interested in its association.

TABLE 4


Chart depiciting distributors association with time period.

Below 1 year 1-2 years 2-5 years More than 5 years

MUNEER CARS

The table showing various factors which influence sale of Muneer cars from distributor’s premises.


Brand name 19 38%

Counter 13 26%

Margin 7 14%

all 11 22%

Total 50 100%

ANALYSIS

From the above table maximum number of respondent, 19 believes that

Brand name is the major factor which initializes the movement of goods in

market. While the counter of distributor acting as sales factor stands at 26 %.

Very less number of respondents, 7 believes that Margin is a factor which

influence sale.

CHART 4


MUNEER CARS

INFERENCE

Determining the factors which influence liquidation of goods play an important role. It identifies the Brand power as well as hurdles faced by the distributors.

From the above chart 38% distributors responded that Muneer Brand is the major influencer while counter and margin are also considered as minor influencers. On other hand 22 % of respondents believe that all the factors together decide Brand movement.

TABLE 5


38%

26%

14%

22%

Factors which influence liquidation of muneer cars from Distributors premisis.

Brand name Counter Margin all

MUNEER CARS

Table showing various sales promotion Aids and its effectiveness over distributors.


Free Schemes 16 32%

Discounts 22 44%

Gift articles 8 16%

Coupons 4 8%

Total 50 100%

ANALYSIS

From the above table maximum number of respondents, 22 believe

that Discounts acts as one of the most effective aid. They are very happy to

get discounts than free schemes, Gifts and coupons. While the second place

is taken by free schemes by 16 respondents. Minority believe that gift

articles and coupons also are good promotional aids.

CHART 5


Free SchemesDiscounts

Gift articlesCoupons

0 5 10 15 20 25

32%44%

16%8%

Effective sales promotion Aids.

No. of Respondents

MUNEER CARS

INFERENCE

Promotional aids by promoters are to be reconstructed by analyzing its effectiveness on consumers.

From the above table distributors infer that discount is the most effective promotional aid which highly satisfies them. While free schemes stand on the second preference with a major number of respondents.

TABLE 6

The table showing the distributors perception about sales .


Free SchemesDiscounts

Gift articlesCoupons

0 5 10 15 20 25

32%44%

16%8%

Effective sales promotion Aids.

No. of Respondents

MUNEER CARS


Seasonal sales 29 58%

Geographical sales 21 42%

Total 50 100%

ANALYSIS

From the above table maximum number of respondents,29 believe that the sales is measured on seasonal terms while nearly equal to that around 21 respondents believe that sales is geography base

CHART 6


58%42%

Distributors perception about sales.

Seasonal sales Geographical sales

MUNEER CARS

INFERENCE

A sale is always dependent on certain demand variables. These variables

decide that what influences demand. Change in seasons and geographic

features are mainly considered in the pharmaceutical sector.

From the above chart majority of respondents, 58% believe that sales of

Muneer cars are based on seasonal variable while other 42 % assume it to be

geographical. It can be inferred that certain drugs like asthma controlling

drugs have sales on geographic conditions with higher altitude causing cold

temperature. While cold tablets are sold more in winter and do not have good

sale in summers.

TABLE 7

The table showing the selling terms of Muneer cars By distributors


58%42%

Distributors perception about sales.

Seasonal sales Geographical sales

MUNEER CARS


Cash 4 8%

Credit 46 92%

Total 50 100%

ANALYSISFrom the above table maximum number of distributors, 46 liquidate their

goods on credit terms and only 4 respondents go for cash. There is a

difference of around 80% between the credit and cash selling terms. It shows

that the whole market is based on credit selling terms.

CHART 7


8%

92%

Distributors selling terms.

CashCredit

MUNEER CARS

INFERENCE

Studying Distributors selling terms are of vital importance. This

activity fetches them finance again and again to continue the sales

periodically. Credit terms are not always good. The risk involved is of higher

level. Hence if the distributor faces financial threat because of bad debt it

would have a similar impact on sale. Hence cash term seems to be better.

From the above chart maximum number of distributors sells good on credit.

This shows the market is credit based. Cash terms are rare. It infers that

liquidation at various sales stages is credit based.

TABLE 8

The table showing time period of order placement From distributors



8%

92%

Distributors selling terms.

CashCredit

MUNEER CARS

Monthly 19 38%

Weekly 24 48%

Occasionally 7 14%

Total 50 100%

ANALYSIS

From the above table maximum number of respondents, 24 place order

weekly. While around 19 respondents place order monthly. Very few

respondents, 7 place order occasionally.

CHART


Monthly Weekly Occas-sionally

0102030

38%48%

14%

Order placement period.

No. o

f Re-

spon

dent

s

MUNEER CARS

CHART 8

INFERENCE

Knowing the order placement cycle of distributors may help in meeting the

demands effectively. This gives important figures which help in production

at times.

From the above chart generally around 48% of distributors place order

weekly and hence Muneer goods have evergreen flow in the market. On

other hand 38% of distributors place order monthly showing healthy sales

signals. Very few distributors place order occasionally.

TABLE 9

The table showing the lead time of supply of Goods to distributors .


MUNEER CARS


1-2 days 32 64%

3-4 days 12 24%

7 & above 6 12%

Total 50 100%

ANALAYSISFrom the above table maximum number of respondents, 32 believe

that the lead time of supply of goods is 1-2 days. Around 12 respondents believe the supply time is 3-4 days and very few distributors responded that lead time of supply was 7 and above

CHART 9


1-2 days 3-4 days 7 & above0

10203040

64%

24%12%

Supply time of goods

No. o

f Res

pond

ents

MUNEER CARS

INFERENCE

Lead time of supply of goods to market is the gap between DEMAND AND

SUPPLY. The length of the gap determines perfection level. Short length

gives excellent network and reach to nook and corner of potential market.

From the above chart the lead time of supply is 1-2 days with 64%

respondents. While 24% respondents believe that supply time is 3-4 days.

Only 12% believe the supply time is 7 days and above. It infers that the

Muneer cars have excellent lead time. This has helped in pushing goods to

grass root level of Market.


1-2 days 3-4 days 7 & above0

10203040

64%

24%12%

Supply time of goods

No. o

f Res

pond

ents

MUNEER CARS

CHAPTER 5:

FINDINGS AND SUGGESTIONS

FINDINGS

Distributors are satisfied with profit margins and credit facility while

happy with schemes. Supply of goods is timely and measured to be 1-2 days.


MUNEER CARS

Distributors believe that there is good market response because of

brand image.

Most of distributors serve urban market with a less than half serve

rural market.

There has been a rapid growth in the number of distributors dealing

with MUNEER in past 5 years.

The major reason for good sales is credited to the brand image of

MARUTHI MOTORS with other minor factors like margin and counters.

Distributors sell goods on credit terms largely with rare occasions of

cash deals.

Majority of Distributors place order weekly followed by monthly.

Hence maintaining evergreen business cycle.

Distributors have a strong conviction about the tough competition

faced by MARUTHI MOTORS.

SUGGESTIONS:

MUNEER CARS has worked hard to make distribution channels

effective.


MUNEER CARS

MUNEERCARS has to introduce new products in order to compete in

the market.

Top management of MARUTHI MOTORS, needs to concentrate more

on their channels of distribution all over India.

BIBILOGRAPHY

BOOK AUTHORMarketing Management S.A. SHERLEKAR


MUNEER CARS

Marketing Management PHILIP KOTLERMarketing (A Managerial Introduction)

V.C. GANDHI

Principal of Marketing B.S. RAMAN

Web Site www.marutisuzuki.com

www.muneercars.com


http://www.marutisuzuki.com/

Date post:	25-Nov-2014
Category:	Documents
Upload:	chandrashekhara-v-gachhinamani
View:	128 times
Download:	3 times

PAMPAPATHI PROJECT

Documents