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    Rohit Suhasaria
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    Siffco Agro Chemicals, a US-based pesticide manufacturer, wants to enter the Indian market but faces challenges of lack of rural infrastructure and established competitors. The document discusses designing an effective distribution channel for India. It recommends listing service requirements, developing levels of service provision, structuring an ideal channel, and calculating costs. Key farmer demands are bulk breaking, spatial convenience, variety, reliable customer service, and information. The channel could include company-owned outlets for direct access, providing low prices, credit, and high penetration.

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    Sales and Distribution

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    Siffco Agro Chemicals, a US-based pesticide manufacturer, wants to enter the Indian market but faces challenges of lack of rural infrastructure and established competitors. The document discusses designing an effective distribution channel for India. It recommends listing service requirements, developing levels of service provision, structuring an ideal channel, and calculating costs. Key farmer demands are bulk breaking, spatial convenience, variety, reliable customer service, and information. The channel could include company-owned outlets for direct access, providing low prices, credit, and high penetration.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    33 views15 pages

    SDM

    Uploaded by

    Rohit Suhasaria
    Siffco Agro Chemicals, a US-based pesticide manufacturer, wants to enter the Indian market but faces challenges of lack of rural infrastructure and established competitors. The document discusses designing an effective distribution channel for India. It recommends listing service requirements, developing levels of service provision, structuring an ideal channel, and calculating costs. Key farmer demands are bulk breaking, spatial convenience, variety, reliable customer service, and information. The channel could include company-owned outlets for direct access, providing low prices, credit, and high penetration.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 15

    Anurag Sikaria

    Aparna Bagla
    Arundhati Singh
    Avishek Chakrabarty
    Deeksha Dogra
    Deepika
    Karan Sood
    Siffco Agro Chemical Ltd.
    US based Pesticide manufacturer
    Planning to enter Indian Market

    Challenges
    Lack of Infrastructure in Rural areas
    Communication
    Transport
    Competitors have a well developed
    distribution network
    Ralliss India
    How to design a channel?
    List down all service output
    Develop levels at which each service output will
    be offered
    Work back from each service output level and
    conceive the activities that have to be
    performed
    Structure an ideal distribution channel
    Calculate the cost incurred
    Develop channel establishment plan
    Customer
    Farmer
    Retailer
    Distributo
    r
    Service Output demands
    SERVICE OUTPUT DEMAND:*
    SEGMENT NAME/
    DESCRIPTOR
    BULK BREAKING SPATIAL
    CONVENIENCE
    DELIVERY/
    WAITING TIME
    ASSORTMENT/
    VARIETY
    CUSTOMER
    SERVICE
    INFORMATION
    PROVISION
    1.
    2.
    3.
    Service Output demands: Farmers
    Bulk breaking:
    Low SKU size
    Low prices (even at the cost of quality)
    Credit
    Spatial convenience:
    Presence in Mandi
    Availability at nearer sources, even if at a higher rate
    Availability with other farm products
    Assortment/ variety
    Customer service: Reliable
    Information provision
    Information
    Support on usage
    Link: Service Output demands &
    Channel Flow
    Company owned outlets
    No involvement of Retailers & Distributors
    Decreased no of
    Intermediaries
    Low prices
    Low prices
    (even at
    the cost of
    quality)
    Short term credit by
    Company owned
    outlets
    Credit
    Spatial convenience
    Presence in Mandi
    High penetration through Company
    owned outlets, Agri-product malls, e-
    Choupal etc
    Availability at nearer
    sources, even if at a
    higher price
    Hariyali

    Availability with
    other farm products
    Freedom to deal in all other products too
    Storage Area
    Close Contact with Sales force
    5-15% Margin

    Service Output demands: Retailers
    5-15% Margin
    Close Contact with Sales force


    Service Output demands:
    Distributors
    Channel Flows
    Channel Flows
    Physical possession
    Ownership
    Promotion
    Negotiation
    Financing
    Risk taking
    Ordering
    Payment
    Distribution
    Plant in Mumbai

    Imp
    Loyalty & trust amongst farmers
    One-to-one relationship

    Possible innovations
    E-chaupal type solution
    Retailer-cum-Expert
    Tie up with agro expert
    Do not advertise/ Feature in Krishi Darshan

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