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A
Report on
Study of distribution
channel
Submitted to: Submitted by:
Global institute of mgt. (16) Komal Dulam
Prof. Dharmendra (38) Sandhya Koganti
Ph.D. (MBA)

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ACKNOWLEDGEMENT
I take this opportunity to express my gratitude and profound thanks to our Director
KISHOR BHUNSALI.
I express our sincere thanks and deep sense of gratitude Studies for providing me with
an opportunity to study and to do this report.
I express a deep sense of gratitude to my Guide Department of Management Studies,
for his encouragement, support and guidance to complete this project work successfully.
I extent my heartful thanks to Prof.DHARMENRA for their valuable co-operation on
collecting all information and data regarding this Project Report.
Finally, I express our sincere thanks and deep sense of gratitude to my parents and
friends for giving timely advice in all the ways and in all aspects for doing the project.

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EXECUTIVE SUMMARY
Distribution channels are behind every product and service that consumers and Business
buyers purchase everywhere. Usually, combination on institutions specializing in manufacturing,
wholesaling, retailing and many other areas join force in Distribution channels.
Distributions channels are a set of inter dependent organization involved in the Process
of making a product or service available for use or consumption.
Distribution channels decisions play a role of strategic importance in the overall Presence
and success a company enjoys in the market palace.
This project report entitled “a study on distribution channel with special Reference to
Birla cement in thiruvarur district”. To determine the dealer satisfaction of the product and future
demands, needs, wants.
The study starts with an introduction of the distribution channel, company Profile,
important of the study, review of literature and objectives are set out for the Study. Research
methodology, data analysis and interpretation, findings and suggestions
Of the study follow.
The response given by the dealers and analyzed and interpret using different Types of
statistical tool such as percentage analysis, chi-square method.

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INDEX
CHAPTER
TITLE
PAGE NO.
INTRODUCTION 5
1 1.1 IMPORTANT OF THE STUDY
2 11
OBJECTIVE
3 12
RESEARCH METHODOLOGY
4 15
DATA ANALYSIS AND INTERPRETATION
5 16
FINDINGS OF THE STUDY
6 17
SUGGESTION
7 LIMITATIONS OF THE STUDY 18
8 SCOPE OF THE FURTHER STUDY 19
9 ANNEXURE 20

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CHAPTER – I
INDRODUCTION
Place, Distribution, Channel, or Intermediary.
A channel of distribution comprises a set of institutions which perform all of the activities
utilized to move a product and its title from production to consumption.
Bucklin - Theory of Distribution Channel Structure (1966)
Another element of Neil H.Borden's Marketing Mix is Place. Place is also known as
channel, distribution, or intermediary. It is the mechanism through which goods and/or
services are moved from the manufacturer/ service provider to the user or consumer.
There are six basic 'channel' decisions:
 Do we use direct or indirect channels? (e.g. 'direct' to a consumer, 'indirect' via a
wholesaler)
 Single or multiple channels
 Cumulative length of the multiple channels
 Types of intermediary (see later)
 Number of intermediaries at each level (e.g. how many retailers in Southern
Spain).
 Which companies as intermediaries to avoid 'intrachannel conflict' (i.e. infighting
between local distributors)

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Selection Consideration - how do we decide upon a distributor?
 Market segment - the distributor must be familiar with your target Consumer and
segment.
 Changes during the product life cycle - different channels can be Exploited at
different points in the PLC e.g. Foldaway scooters are Now available everywhere.
Once they were sold via a few specific Stores.
 Producer - distributor fit - Is there a match between their polices, Strategies, image,
and yours? Look for 'synergy'.
 Qualification assessment - establish the experience and track record of
Your intermediary.
 How much training and support will your distributor require?
Types of Channel Intermediaries.
 There are many types of intermediaries such as wholesalers, agents, retailers, the
Internet, overseas distributors, direct marketing (from manufacturer to use without
an intermediary), and many others. The main modes of Distribution will be looked
at in more detail.
1. Channel Intermediaries – Wholesalers
They break down 'bulk' into smaller packages for resale by a retailer. They buy from
producers and resell to retailers.
They take ownership or 'Title' to goods whereas agents do not (see below).
They provide storage facilities. For example, cheese manufacturers seldom wait for their
product to mature. They sell on to a wholesaler that will store it and eventually resell to a
retailer.
Wholesalers offer reduce the physical contact cost between the producer and consumer
e.g. customer service costs, or sales force costs.

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A wholesaler will often take on the some of the marketing responsibilities. Many produce
their own brochures and use their own telesales operations.
2. Channel Intermediaries – Agents
Agents are mainly used in international markets.
An agent will typically secure an order for a producer and will take a Commission. They
do not tend to take title to the goods. This means that Capital is not tied up in goods.
However, a 'stockiest agent' will hold consignment stock (i.e. will store the stock, but the
title will remain with. The producer. This approach is used where goods need to get into a
market soon after the order is placed e.g. foodstuffs).
Agents can be very expensive to train. They are difficult to keep control of due to the
physical distances involved. They are difficult to motivate.
3. Channel Intermediaries – Retailers
Retailers will have a much stronger personal relationship with the Consumer.
The retailer will hold several other brands and products. A consumer will expect to be
exposed to many products.
Retailers will often offer credit to the customer e.g. electrical wholesalers, or travel
agents.
Products and services are promoted and merchandised by the retailer. The retailer will
give the final selling price to the product.
Retailers often have a strong 'brand' themselves e.g. Ross and Wall-Mart In the USA, and
Lisper, Modulo, and Jumbo in Portugal.
4. Channel Intermediaries – Internet
The Internet has a geographically disperse market.
The main benefit of the Internet is that niche products reach a wider Audience e.g.
Scottish Salmon direct from an Inverness fishery.
There are low barriers low barriers to entry as set up costs are low.
Use e-commerce technology (for payment, shopping software, etc)
There is a paradigm shift in commerce and consumption which benefits distribution via
the Internet

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1.1 IMPORTANTS OF THE STUDY
The study is very significant to understand the distribution channels.
The study is important to know the dealers satisfaction level for the
dealership.
The study is important to know the dealers satisfaction level in the price of
the Cements.
The study is important to know the dealers preference for the quality.
The study is very important to know the sales volume.
The study is also analyses the effective media for improving the sales.
The study is important to know availability of the cement.
The study is important to know margins in the cement industries.

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1.2 COMPANY PROFILE
Mr. Kumar Mangalam Birla is the Chairman of the Aditya Birla group, which is
among India's largest business houses. Among its major Companies in India are Grasim,
Hindalco, Indo Gulf, UltraTech Cement and Aditya Birla Nuvo. Its JVs include Idea
Cellular (Birla-Tata, [Telecom]), Birla Sun Life (Financial Services) and Birla NGK
(Insulators).
While Mr. Birla is the Chairman of all of the Group's blue-chip Companies in India,
he serves as a Director on the Board of the Group's International Companies spanning
Thailand, Indonesia, Malaysia, Philippines and Egypt. The Group's operations extend to
Canada, China, USA, U.K. and Australia as well.
He is also on the Board of Tata Iron & Steel Company (TISCO), and Maruti Udyog
Limited. Additionally, he is on the Board of the G.D.Birla Medical Research &
Education Foundation and a Member of the Board of Governors of the Birla Institute of
Technology & Science (BITS), Pilani, and the prestigious Indian Institute of
Management, Ahmedabad as well. He is a Member of the LondonBusiness School's Asia
Pacific Advisory Board, which provides counsel on the School's strategy and curriculum.
He is "Honorary Fellow" of the London Business School (LBS), a title conferred upon
him by the Governing Board of The LBS.

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1.3 PRODUCT PROFILE:
Cement is the basic binding material, which is used for construction purpose and it
is a commodity which has become a part of our life and will find demand till time
stands still.
The Indian cement industry is on a roll. Riding on increased activity in real estate,
cement production has registered a growth of 7.24 per cent in April, 2005, at 11.41
million tones as against 10.49 million tons in the corresponding period a year ago.
The growth trend has been on for some time now. In the April-January 2004-05
periods, the sector registered a rise of 7.1 per cent, producing 108.06 million tones. If
these trends are anything to go by, it will not be long before the sector meets the
production target of 133 million tones set by the government in the fiscal 2004-05.
During the Tenth Plan, the industry, which is ranked second in the world?
In terms of production, is expected to grow at 10 per cent per annum adding a
Capacity of 40-52 million tons, according to the annual report of the Department of
Industrial Policy and Promotion (DIPP).
The report reveals that This growth trend is being driven mainly by the expansion of
existing plants and Using more fly ash in the production of cement.
A number of cement industry leaders have reported increase in dispatches
Ranging from 5.44 per cent to around 10 per cent for the year ended March 31,
2005.
CEMENT PERFORMANCE
Cement performance of the Aditya Birla Group for April 2006:
Production at 26.76 lakh mt — up by 8.53 per cent
Dispatches at 26.28 lakh mt — up by 6.08 per cent
The Aditya Birla Group's cement production for April 2006 grew by 8.53 percent
at 26.76 lakh mt as against 24.66 lakh mt during April 2005.
Despatches moved up by 6.08 per cent at 26.28 lakh mt in April 2006 as
against 24.77 lakh mt in the corresponding period last year.
Cement performance of the Aditya Birla Group for May 2006:
Production at 26.09 lakh mt up 3.68 per cent. Despatches at 28.26 lakh mt up by 7.92.

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OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVES:
To find out the distribution channels of Birla cement in Thiruvarur district.
To compare the distribution system of Birla cement with other cements.
SECONDARY OBJECTIVES:
To find out the advertisement efficiency of Birla cement.
To find out the marketing situations of Birla cement from others.
To find out the present problems faced by dealers.
To find out the any new scheme required by the dealers.
To give valuable suggestions to the company for increase the sales volume

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RESEARH METHODOLOGY
Pilot study tells about the completeness, accuracy convenience of the Sampling from
which it is proposed to select the sample.
4.1 RESEARCH DESIGN:
On analysis the condition the researcher found that descriptive research Design is appropriate for
the research for the study.
DESCRIPTIVE RESEARCH:
Descriptive research includes surveys and fact-finding enquiries of Different kinds. The
major purpose of descriptive research is description of the state of affairs as it exists at present.
In social science and business research we quite often use the term Ex post facto research for
descriptive research studies. The main characteristic of this method is that the researcher has no
control over the variables; he can only report what has happening.
4.2 PRE-TEST:
The researcher tested the questionnaire with Hundred respondents chosen from different
consumer at random and checked whether this questionnaire was understandable.
4.3 SAMPLING TECHNIQUES:
The researchers select the judgment sampling model for his researcher Work.
4.4 SAMPLE SIZE:
The researcher selected the 100 respondents for the present study in Ahmedabad District.
4.5 DATA COLLECTION TECHNIQUES
The researcher used a Questionnaire, which was self developed after having Session of
discussion with marketing manager. The statistical techniques such as On the way of analysis of
various chi-squares were applied to draw meaningful.

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FINDINGS OF THE STUDY
(26%) of the respondents are having Chettinadu cement dealership. And
16% of respondents are having Birla cement dealership.
(26%) of the respondents feel that Chettinadu cement is having high sales
volume. At the same time Birla cement is having less sales volume.
(26%) Chettinadu cement most valuable suppliers from dealer’s point of
view. And Birla cement (16%) of respondents is considering most valuable suppliers.
(92%) of the respondents feel that quality of the product is excellent. And
(8%) of the respondents feel that quality is poor.
(14%) of the respondents satisfied with price of the products. And (86%)
Of the respondents not satisfied with price of the products.
(26%) Chettinadu cement and (26%) Dalmia cement they are moving fast
in cement industry. And (12%) Birla cement is moving slowly.
(6%) of the respondents feel that order and replacement is highly
satisfied. And (62%) of the respondents feel that average.
(28%) of the respondents highly satisfied with availability of the product.
And (10%) of the respondents not satisfied.
(12%) of the respondents satisfied with margins offered by the product.
And (68%) of the respondents feel that margins of the product is average.
(62%) of the respondents satisfied with Birla cement dealership. And
(38%) of the respondents not satisfied.

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SUGGETION
Birla cement should concentrate in credit facility of the dealers.
Fixed the standard price of the product
Birla cement should concentrate on sales man visit for wide marketing.
Birla cement should concentrate to attract the dealers.
Birla cement should improve their sales promotional efforts.
Birla cement does a market research and gets feedback.
Birla cement should concentrate to give incentives to the sub-dealers also.
Birla cement should concentrate to fulfill the service for dealers required.

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LIMITATION OF THE STUDY
One of the important of the study was lack of time. Though the respondent to the study
was vast due to the time constraints the sample size was limited.
The researcher has difficulty with most of the respondents who was not willing to
cooperate with the study, as they were very busy with their work.
The research had also difficulty in getting some information, which the respondents were
not interested to give.
The researcher had difficulty with the respondents because they did not fill up the
questionnaire in proper time.
Another limitation of the study was confined with not only retailers but also consumers
for survey of this study.

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SCOPE OF THE FURTHER STUDY
The scope of the study is confirmed to distribution channel with special reference to the
“BIRLA CEMENT” in Thiruvarur district.
The study can help to the management to know the factors why their sales volumes are
low.
The study will help to improve the sales volumes of the “BIRLACEMENT”
The recommendation and suggestion of the study can also be applied to the similar
project or similar situation

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CONCLUSION
After analysis the data we have concluded that Chettinadu cement, Sankar
cement, and Dalmia cement they are captured first three place and Birla cement is in
fourth place. Because the sales volume of the Birla cement is very low compare than
others and the aware of the Birla cement is very less in Thiruvarur dist. Moreover Birla
cement has limited dealership with dealers.
So automatically there is lack of availability creates. Therefore Birla cement has
to improve its sales promotional efforts as well as follow some strategies through
effective market research and get feedback from their consumers and
customers(dealers).And give more advertisement so that move powerful than others and
fixed the standard price.
At the same time quality (life time of the cement) delivery time of the Birla
cement is good.
“IN SIMPLE WORDS BIRLA CEMENT IS UNDER DEVELOPING STAGE IN THIRUVARUR
DIST”

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ANNEXURE
A STUDY ON DISTRIBUTION CHANNELS SURVEY WITH
SPECIAL REFERENCE TO “BIRLA CEMENT” IN
THIRUVARUR DISTRICT
QUESTIONNAIRE
1. Name :
2. Age :
3. Education qualification :
4. Address :
5. What are the cement dealership do you have?
a. Ramco
b. Chettinadu
c. Sankar
d. Birla
e. Dalmia
6. Which company gets high sales volume in cement industry?
a. Ramco
b. Chettinadu
c. Sankar
d. Birla
e. Dalmia
7. What is your opinion about the quality of birla cement?
a. Excellent
b. Very good
c. Good
d. Average
e. Poor
8. Which is the fast moving brand in your town?
a. Ramco
b. Chettinadu
c. Sankar
d. Birla

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e. Dalmia .
9. Please rate the availability of birla cement?
A. Highly satisfied
B. Satisfied
C. Average
D. Dissatisfied
E. Highly dissatisfied
10. Are you satisfied with the margins offered by birla cement?
A. Highly satisfied
B. Satisfied
C. Average
D. Dissatisfied
E. Highly dissatisfied
11. Do you satisfied to take the birla cement dealership?
A. Yes
B. No
12. Please mention advertisement offered by birla
Cement?
A. Too high
B. High
C. Moderate
D. Low
E. Too low
13. Please mention sales promotional efforts of the birla
Cement?
A. Excellent
B. Very good
C. Good
D. Average
E. Poor

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BIBLIOGRAPHY
BOOKS
1. Marketing Management “Philip Kotler” [PRENTICE HALL OF INDIA PVT, LTD
NEW DELHI-110001, 2003.] 11th EDITION
2. Research Methodology “C.R.Kothari” [NEW AGE
INTERNATIONAL(P)LIMITED,HYDERABAD]2ND EDITION.
3. Marketing “Dr N. Rajan and sanjith.R.Nair”[SULTAN CHAND&SONS
Daryaganj New Delhi-110002,1987]6th EDITION.
4. Marketing Management S.A.Sherleker[PRENTICE HALL OF INDIA PVT,LTD
NEW DELHI-110001,2003.] 1stEDITION
INTERNET:
www.google.com
www.grasim.com
www.birla.com