Channels of Distribution

Q.

Explain the factors determining choice of channels of distribution.

Q.

Explain the factors determining a choice of channels of distribution.

Q.

'Haldiram is selling its product directly to the customers'. State which channel of distribution is used by the company.

1. Direct Channel

2. Zero Level Channel

3. Forward Channel

4. Indirect Channel

Q.

Which channel of distribution does Amul Parlours adopt? Discuss in brief.

or

List any four methods of direct distribution.

Q.

Differentiated products is a characteristic of :

1. (a)Monopolistic competition only

2. (b)Oligopoly only

3. (c)Both monopolistic competition and oligopoly

4. (d)Monopoly

Q.

Nokia takes the four-lane road to consumers. In New Delhi, after having grabbed a king size 79% share of the Rs. 15, 000 crore mobile handset market in India, Nokia India has found a new way of connecting people. The mobile handset manufacturer has embarked upon a brand new retail strategy that is based on a classification of its consumers into four major groups that separates people in terms of usage, income level, and lifestyle.

The classification is based on an extensive survey- The Nokia Segmentation Study -that was carried over 2 years involving 42, 000 consumers from 16 countries. It studied the impact lifestyle choices and attitudes have on the mobile devices consumers buy and how they use them. The strategy, which was announced globally in June last year, is being unfolded in India now. While the nitty-gritty of the new strategy is still being worked out, it is likely that the company would follow separate marketing strategies for the four different segments. The advertising campaigns could be different for the segments.

Nokia's entire product portfolio has now been realigned towards these four groups to address the specific needs of each. The first of these segments Live, aimed at first time users, whose basic need is to stay in touch with the voice as the main driver, would have basic handsets low on features and price. 'These may be functional phones, but the target group for these phones range from SEC C(low socio-economic class) to SEC Al+ (very high socio-economic class) markets', says Nokia India marketing head, Devinder Kishore. The second segment Connect looks at more evolved users, who look for more functionality and features and connectivity. Accordingly, phones in this segment would have GPRS, camera and music capabilities.

The next two categories, Achieve and Explore, are aimed at high-end users and have Nokia's top-end handsets. e.g. Achieve segment looks at enterprise users, who need to have business functionalities In their phones. Nokia's new E-series has been put under this segment with handsets having QWEFtTY keyboards and full Internet capabilities. Aimed at high-end lifestyle users, Explore would be the most prominent segment for the company in the coming years. Says Nokia India multimedia business director, Vineet Taneja, 'This segment would see the most vibrant growth in the coming year. It will look at five different areas—applications, imaging, mobile, TV, music, and gaming. We are fast developing the ecosystem to support these areas'.

Nokia acquired music solution and content provider LoudEye and GPS solution provider Gate 5. It is all slated to launch its most high-profile handset, which boasts of having a 5 megapixel camera and GPS capabilities apart from iPod quality music, in February. Says Taneja, 'There is an increasing demand for convergence and multiple functionalities in high-end handsets. The N-series will try to address that'. Nokia feels that the new platform strategy, wherein different handsets are launched under a platform like the N-Series will become a status and style statement and drive numbers.

Identify the four market segments that Nokia plans to address as per the news report above.

Q. A company ‘M’ limited is manufacturing mobile phones both for domestic Indian market as well as for export. It had enjoyed a substantial market share and also had a loyal customer following. But lately it has been experiencing problems because its targets have not been met with regard to sales and customer satisfaction. Also mobile market in India has grown tremendously and new players have come with better technology and pricing. This is causing problems for the company. It is planning to revamp its controlling system and take other steps necessary to rectify the problems it is facing.

a. Identify the benefits the company will derive from a good control system.

b. How can the company relate its planning with control in this line of business to ensure that its plans are actually implemented and targets attained.

c. Give the steps in the control process that the company should follow to remove the problems it is facing.

Q.

___ can happen through marketing intermediaries like wholesalers and retailers, exclusive stores or even online retail stores.

1. Channel of distribution

2. Physical distribution

3. Direct distribution

4. None of the above

Q.

The levels of indirect channels are:

1. One level channel

2. Two level channel

3. Three level channel

4. Four level channel

Q. Which of the following pricing strategies are used when adopting a penetration pricing strategy?

1. Charging high price
2. Charging low price
3. Charging competitive price
4. None of the above

Q. Answer the following.

What are the resources required for successful e-business implementation?

Q. Haldiram is selling fast food to the customers. Write the name of channel of distribution used by the company.

Q.

Now, filing complaint is just a click away. Filing a complaint in a consumer court is going to get a lot easier by the end of this year, virtually. No matter which part of the country you're in, it's going to happen at the click of a mouse. The project, called CCNCF (Computerisation and Computer Networking of Consumer Fora), is being executed on a turnkey basis by the National Informatics Centre (NIC).

'Online registration of complaints, the government hopes, will promote e-governance, transparency, efficiency and streamlining of consumer fora', said an official in the Consumer Affairs Ministry. Of Rs. 48.64 crores set aside for the project, the government has released Rs. 30.56 crores so far, the officials added. 'Besides software development and testing, networking and project implementation, integration and site preparation, it will include a purchase of hardware for all the 583 district fora, 35 State Commissions and the National Commission', the official said.

At present, computer systems and system software have been delivered to 25 State Commissions and 300 district fora — never mind the fact that it's sometimes a long wait before the hardware is finally unpacked and set-up in some of the districts. Meanwhile, training of staff, sometimes in the classroom and sometimes through e-learning sessions, is in full swing.

'But just setting up an online complaint filing system won't ensure a strong consumer protection movement in the country - for that, we're working on GenNext and the best way to do that is to go to schools', the official said. The government is, therefore, involving school children to form consumer clubs, so as to involve them in various consumer welfare activities.

Part of the funding for running the club is to come from various State Governments, with an equally matching grant from the center. However, a number of State Governments are yet to sanction the fund - some of these include Uttar Pradesh, Madhya Pradesh, and Kerala.

What new measures is the Ministry of Consumer Affairs taking to make filing of complaint easy?

Q. Which of the following is not a part of sales promotion activities?

1. Discounts
2. Lucky draw
3. Online marketing
4. Refunds

Q. By selling directly to the consumers, the multiple-shop organisation is able to eliminate unnecessary middlemen in the sale of goods and services.

1. True
2. False

Q. Advertising adds to the sales promotion.

1. True
2. False

Q. Six Mark Question
'Hayaram' is a famous chain selling a large variety of products in the Indian market. Their products include chips, biscuits, sweets and squashes. It charges a comparatively higher price than its competitors as it sells quality products. Besides, it offers regular discounts to its customers and easy credit terms to its retailers. It has five of its own retail shops. It also sells its products through various grocery stores so that the products are made available to customers at the right place, in the right quantity and at the right time. It regularly uses different communication tools to increase its sales.
The above pan describes the combination of variables used by Hayaram to prepare its market offering. Identify and explain the variables.

Q. Channels of distribution is a team of individuals that combine the physical movement of goods and title movement of goods.

1. False
2. True

Q. Channels of distribution physically transport goods from the place of production to the place of consumption.

1. True
2. False

Q.

What cost effective technique will you follow for promotion plan of mobile phones