ASSIGNMENT ON

Sales and Distribution Management

(mtkg-3203
TO!I"- #un$tions % Strategi$ issues o& '(olesalers

De)artment O& *usiness Administration Assam +ni,ersit-

A. INTRODUCTION:
All a$ti,ities in,ol,ed in selling goods and ser,i$es to t(ose bu-ing &or resale or business use is $alled '(olesaling. A &irm engaged )rimaril- in /(olesaling a$ti,itis a /(olesaler. '(olesalers are one o& t(e im)ortant middlemen in t(e $(annel o& distribution /(o deals /it( t(e goods in bulk 0uantit-. T(e- bu- goods in bulk &rom t(e )rodu$ers and sell t(em in relati,el- smaller 0uantities to t(e retailers. In some
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$ases t(e- also sell goods dire$tl- to t(e $onsumers i& t(e 0uantit- to be )ur$(ased is more. T(e- usuall- deal /it( a limited ,ariet- o& items and also in a s)e$i&i$ line o& )rodu$t1 like iron and steel1 te2tiles1 )a)er1 ele$tri$al a))lian$es1 et$. B. FUNCTIONS OF WHOLESALER : 1. Assembling: A /(olesaler bu-s goods in bulk &rom di&&erent manu&a$turers and kee)s t(em at one )la$e. 3e $olle$ts goods &rom se,eral )la$es mu$( in ad,an$e o& demand. 3e ma- also im)ort goods &rom &oreign $ountries. 2. Ware !"sing !r s#!rage: T(ere is usuall- a large time ga) bet/een )rodu$tion and $onsum)tion o& goods. Goods must1 t(ere&ore1 be stored &or a $onsiderable time. A /(olesaler stores goods in (is /are(ouse and makes t(em a,ailable to retailers as and /(en demanded. 3e stabili4es )ri$es o& t(e goods b- ad5usting t(e su))l- /it( t(e demand. 3e $reates time utilit-. $. Dis%ersi!n: A /(olesaler distributes t(e assembled goods among a large number o& retailers s$attered at di&&erent )la$es. 3e sells goods in small 0uantities a$$ording to t(e $(oi$e o& retailers. T(is is kno/n as 6breaking o& bulk6. &. Trans%!r#a#i!n: A /(olesaler arranges &or t(e trans)ort o& goods &rom )rodu$ers to (is /are(ouse and &rom t(e /are(ouse to retailers. 3e $arries goods in bulk t(ereb- sa,ing $osts o& trans)ort. Man- /(olesalers maintain t(eir o/n tru$ks and tem)os to $arr- goods &ar and /ide 0ui$kl-. T(us1 a /(olesaler adds )la$e utilit- to t(e goods. '. Finan(ing: A /(olesaler o&ten )ro,ides ad,an$e mone- /it( orders to manu&a$turers. 3e )ur$(ases goods in bulk on $as( basis &rom t(em. In addition1 (e o&ten sells goods on $redit basis to retailers. In t(is /a-1 (e )ro,ides &inan$e to bot( )rodu$ers and retailers. ). Ris* +bearing: A /(olesaler assumes t(e risk o& damage to goods in transit and in storage. 3e also bears t(e risks arising &rom $(anges in demand and bad debts. 3e ser,es as t(e s(o$k absorber in t(e distribution o& goods. ,. -ra.ing an. /a(*ing:
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Man- /(olesalers $lassi&- t(e assembled goods into di&&erent grades1 )a$k t(em into small lots and )ut t(eir o/n trademarks or brand names. In t(is /a-1 t(e)er&orm t(e &un$tions o& grading1 )a$king and branding. 0. /ri(ing: A /(olesaler anti$i)ates demand and market $onditions. 3e (el)s to determine t(e resale )ri$e o& goods. 1. /r!2i.ing 3ar*e# In4!rma#i!n '(olesalers )ro,ide in&ormation to t(e retailers about t(e goods1 /(i$( are a,ailable in t(e market. Also1 t(e- $olle$t in&ormation &rom t(e retailers about t(e $(anges in t(e tastes1 &as(ions1 bu-ing (abits o& t(e $onsumers1 et$.1 and t(en )ass t(em on to t(e manu&a$turers. C. STRATE-IC ISSUES OF WHOLESALER: '(olesalers (a,e e2)erien$ed (ig( $om)etiti,e )ressures in re$ent -ears. T(ere&ore t(e- (a,e &elt t(e need to im)ro,e t(eir strategi$ de$isions on target markets and )ositioning and on t(e marketing mi2- )rodu$t assortments and ser,i$es1 )ri$e1 )romotion and )la$e. a5 W !lesaler 3ar*e#ing 3i6 De(isi!ns7 8ike retailers /(olesalers must de$ide on )rodu$t assortment and ser,i$es1 )ri$es1 )romotion and )la$e. '(olesalers are under )ressure to $arr- a &ull-line( )rodu$t assortment and to sto$k enoug( &or immediate deli,er- to retailers. *ut t(is ma- a&&e$t t(eir )ro&it. 3en$e t(e ke- is to &ind t(e mi2 o& ser,i$es most ,alued to t(e $ustomers. !ri$e is also an im)ortant /(olesaler de$ision. '(olesalers usuall- mark u) t(e $ost o& goods b- a standard )er$entage. Also )romotion $an be $riti$al to t(e su$$ess o& /(olesalers. T(e use o& trade1 ad,ertising1 sales1 )romotion1 )ersonal selling and )ubli$ relations ma- be (el)&ul. !la$e is also im)ortant9/(olesalers must $(oose t(eir lo$ations and &a$ilities $are&ull-. b5 Targe# mar*e# an. %!si#i!ning: 8ike retailers1 /(olesalers $annot ser,e e,er-one. T(e- must de&ine t(eir target market and )osition t(emsel,es e&&e$ti,el-. T(e- $an $(oose a target grou) b- si4e o& $ustomer ( onl- large retailers 1 t-)e o& $ustomer ($on,enien$e &ood stores onl- need &or ser,i$e ( $ustomers /(o need $redit 1 et$. t(e- ma- o&&er &ull- ser,i$e o& limited1 ser,i$e to retailers to )osition t(emsel,es suitabl- in t(e target market. D. CONCLUSION: '(olesaling in$ludes all transa$tions in /(i$( a )ur$(aser intends to use t(e )rodu$t &or resale1 &or making ot(er )rodu$ts1 or &or general business o)erations.
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T(e- &orm a $riti$al link in t(e distribution $(annel and su))ort manu&a$turers in making t(eir )rodu$ts a,ailable to t(e $onsumers in ade0uate 0uantities at t(e rig(t )la$e and at t(e rig(t time.

BIBLIO-RA/H7:

Sales and Distribution Management * Internet

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