The document discusses distribution channels for farm implements in India. It outlines the existing framework which typically involves manufacturers, wholesalers, retailers and consumers/farmers with one or two intermediary levels. It notes there is scope for new channel dynamics and a path ahead could involve establishing more localized service centers to improve information flow, customer satisfaction and value addition at the village level.

1. Distribution Channel
[Farm Implements]
Course: Agri-Input Marketing[PGDM2011-13],
Indian Institute of Plantation Management, Bangalore
Presented by-
BIDHU BHUSHAN BINIT(11PGDM08)

2. Contents
 Backdrop
 Indian Farm Equipment Market
 Existing Distribution Channel Framework
 Channel Dimensions & Analysis
- number of channel levels
- channel alternatives
- information flow
 Scope for New Channel Dynamics
 Path Ahead

3. Backdrop
Distribution
Channel
Designing & Channel
managing
Marketing
Channels
Shaping
the Market
Offering
Developing
Market Strategies

4. Backdrop
“The middlemen is not a hired link in a chain forged
by a manufacturer, but rather an independent
market, the focus of a large group of customers for
whom he buys.”
- Phillip McVey

5. Indian Farm Equipment
Market(contribution)

6. Types of Farm Equipments

7. Indian Farm Equipment Market

8. Industry Growth

9. Existing Distribution Channel Framework
Retaile
r
Equipment Retaile Consum
Manufactu wholesaler er
rer
r
(Farmer)
wholesale Retaile
jobber r
r
>No existance of C&F agents ,which is unlike to other agri-input sectors.
>Sometimes, there is one intermediary which works as both wholesaler
as well as retailer .
> Transfer of title of goods .

10. Number of channel levels
dealer
manuf
acturer farmer
wholesale
r dealer

11. Channel Alternatives
Type of Business Intermediaries Number of Intermediaries
 Manufacturers of farm  Manufacturers goes both for
equipments opts for intensive distribution as well as for
exclusive distribution.
conventional type of
intermediaries. Products are  It depends on the potential of
for farmers, usually wholesalers market, sales potential and type of
equipment.
and retailers they choose.
 Usually Tractor market shows
 No innovative types are in the
,exclusive distribution with
line. exclusive dealing.
 Exclusive dealing means dealer
not to carry complete line.

12. Information flow(through channel)
Local
manufacture Zonal sales sales dealer
r office office
Barefoot
salesma
n
Banks/fin
Consume ancial
r/farmer institution
s

13. Scope for new channel dynamics
 Farm equipment manufacturing company has been
in practice of conventional marketing channels.
 In other sectors vertical marketing system has been
adopted, the nature of this agri-input sector itself
supports in resistance to new channel dynamics.
 In exclusive dealership, it can be said that essence
of VMS can be felt in terms of power of
manufacturer(brand power) but not in the form of
ownership.

14. Path Ahead in distribution channel of Farm
Implements
 Industry is in its nascent phase in comparison to
other agri-input sectors, so in future lot of changes
will be seen.
 Today, manufacturers seems to be much dependent
on their channel partners which veils the information
flow.
 There is much scope of value addition on channel
level. Usually service centers are established with
dealers. If it is made to the village level, it will create
a new dimension for channel resulting into
transparent flow of information with customer
satisfaction and also this move will bring
augmentation.

15. THANK YOU !