PROJECT REPORT

1. PREFACE
The project report contains material collected from the study on “Distribution Channel” in J.K
Tyres Ltd, Guwhati, as a part of the course curriculum of 3dr BBA; NEHU.
As regards to the subject, it can be said that; marketing is an essential element for the proper
functioning of the different companies. Without marketing the vital communications between
the manufacturer sand the consumers does not exists. And thus the term marketing
management is the process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods, and services to create exchanges that satisfy individual and
organizational goals.
Now, as regards to the topic, it can be said that distribution channels are sets of interdependent
organizations involved in the process of making a product or service available for use or
consumption.

2. ACKNOWLEDGEMENT
The project work done by me was not entirely out of my own effort, but also the co-operation
of many useful hands. The work would not have been made possible and so systematic if the
helpful hands would not joined hands with me to conduct the meritious outcome of the
survey.
First of all, I would like to thank the Almighty because nothing could have been possible
without his blessings and divinity.
Next, am very much indebted to our Principal Father V.A Cyraic, my teachers Sir Sanjeev
Hazarika(HOD) Department of Business Administration, Sir Bilrak k Marak. Sir Sendrik A
Sangma and Sir Paul Hrangkhawl for their help and support.
Thirdly, I would like to thank my friends and family members for their constant help in
conducting my project work. Also I would like to acknowledge my thanks to the ex-senior
students whose projects were of great help in preparation of my project
Last but not the least; I would like to thank Mr. Debarikhav Phukan, the sales and service
engineer (truck Radial) for helping me to out in giving the relevant details of the required
topic and thus helping me to prepare my project report efficiently.
Thus, I acknowledge my thanks to all of them, without whom I would have not been able to
carry out my project preparations so successfully.
SWARNIMA TIWARI

4. CHAPTERS
1. EXECUTIVE SUMMERY
1.1 Introduction
1.2 Importance of the subject
1.3 Reasons for selecting the topic
1.4 Reasons for selecting the company
2. COMPANY PROFILE
2.1 Introduction
2.2 Core values of the organization
2.3 Introduction to the company
2.4 General Information
2.5 Their Plants
2.6 Their vision and Mission
2.7 Organizational Chart
3. HISTORY OF TYRES
3.1 General Information
3.2 Tyre Technology
4. DISTRIBUTION DEPARTMENT OF THE COMPANY
4.1 General Introduction to the department
4.2 Functions of the Department
4.3 Organizational setup
4.4 Pictures of the C&F
5. TOPIC THEORY
5.1 Introduction to the topic
5.2 Characteristics of distribution channel
5.3 Role and Importance of distribution channel
5.4 Functions of distribution channel
5.5 Types or classification of distribution channel
5.6 Major types of intermediaries in distribution channel
5.7 Types of channels in distribution channel
5.8 Factors governing the choice of an intermediary
5.9 The channel policy and strategies
5.10 Some other dimensions of channel management
Page No.
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5. 6. DISTRIBUTION OF J.K TYRES LTD
6.1 Distribution pattern Of J.K tyres Ltd
6.2 Map showing J.K tyres operation in India
6.3 Their operation in North-East India
7. RESEARCH OBJECTIVE AND METHODOLOGY
7.1 Research objectives
7.2 Research methodology
8. METHODS OF DATA COLLECTION
8.1 Introduction
8.2 Methods of data collection
9. GRAPHICAL REPRESENTATION OF DATA
10. LIMITATIONS
11. CONCLUSION
12. ANNEXURES
13. BIBLIOGRAPHY

7. 1. EXECUTIVE SUMMERY
1.1: INTRODUCTION: Marketing Management usually represents all managerial efforts and
functions to operate the marketing concept not only in letters, but also in sprit. It is a concept,
combining the various elements of Marketing and Management.
In the “Marketing concept”, it usually demands customer-oriented marketing plans, programs and
policies so that the market can assure perfect positive correlation between the supply and customers
desires and expectations.
In the “Management concept”, it usually deals in the management cycle of planning, effective
implementation, evaluation and control, feedback and re-planning.
Thus combining the two concepts of Marketing and Management, we get the full concept of the term
Marketing Management, which represents a vital functional area of Business Management efforts for
the flow of goods and services from the producer to the consumers. It has to implement the marketing
strategies, promotions and campaigns. Finally, it must evaluate the effectiveness of each part of
marketing mix and introduce vital modifications to remove discrepancies in the actual execution of
plans, policies, strategies, procedures and programs. The survival and growth of any business depends
upon the profitability, when marketing management becomes a good practitioner of the marketing
concept.
Thus, Marketing Management is an ongoing process dynamic marketing environment. It is the
analysis, planning, implementation, and control of programs designed to creates build and maintain
beneficial exchanges with target buyers for the purpose of achieving organizational objectives. Thus,
Marketing Management involves managing demand which in turn involves managing customer’s
relationship.
1.2 IMPORTANTANCE OF THE SUBJECT: After a brief introduction of the subject, it can be
said that marketing is an ongoing process, comprising of:
 Discovering and translating consumer needs and desires into products.
 Creating demands for the products and services through promotion and pricing.
 Serving the consumer demand through planned physical distribution.
 Expanding the market even in the face of keen competition.
Thus, the given important aspects of “Marketing Management” are important tool for
all its major functioning. Without it the process of marketing is not possible and it does not lead to
efficient management in the company. Thus for a company it is very vital to efficiently use all its
resources in meeting the demands of the consumers and also earning a high profit turnover.
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8. 1.3: REASONS FOR SELECTING THE TOPIC: The following are the reasons as to why,
the given topic namely “Distribution Channel” was chosen by me.
1. To know the types of distribution channels in the organization.
2. To know the functioning of the various distribution channels
3. To know that how they act as intermediary between the producer and the consumers.
4. To know that whether they are able to supply the goods to the consumers’ in time or not.
1.4: REASONS FOR SELECTING THE COMPANY: The following are the reasons as to
why J.k Tyres Ltd was Chosen by me.
1. The company is a well known one and has goodwill in the national and international market
also.
2. To know about the operation and distribution pattern of J.K Tyres in North East.
3. To know the market share of J.K. Tyres in Northern Market.
Thus, these were the reasons for selecting the company to carry out the project.
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9. 2. COMPANY PROFILE
2.1: INTRODUCTION TO THE ORGANIZATION: J.K organization owes its name to
late Juggilal Singhania, a dynamic perrsonality with a broad vision. Inspoerd by the cause of
the Swadeshi movement of Mathama Gandhi, and driven by the zeal to set up an Indian
enterprise, Lala Kamlatath Singhania Founded J.K Organization in the 19th century ushering
in a new industrial era in India.
The process of Industrialzation and diversification was worthily and successfully carried on
by Lala Kamlapath and three illustrious sons-sir padampat, Lala Kailashpat and lala
lakshmipat, aided in no small measure by the late Gopal Krishna son of Sir Padampat.
The advent of JK Organization on the industrial landscape of India almost synchronizes with
the beginning of an era of industrial awareness - an endeavor for self reliance and the setting
up of a dynamic Indian industry. This was way back in the middle of the 19th century. And
the rest that followed is history.
2.2: CORE VALUES OF THE ORGNIZATION:
JK Organization has been a forerunner in the economic and
social advancement of India. It always aimed at creating job
opportunities for a multitude of countrymen and to provide high
quality products. It has striven to make India self reliant by
pioneering the production of a number of industrial and
consumer products, by adopting the latest technology as well as
developing its own know-how. It has also undertaken industrial
ventures in several other countries.
JK Organization is an association of industrial and commercial
companies and charitable trusts. Its member companies,
employing nearly 50,000 persons are engaged in the manufacture
of a variety of products and in diverse fields of commerce.
Trusts are devoted to promoting industrial, technical and medical
research, education, religious values and providing better living and recreational facilities.
With the spirit of social consciousness uppermost in mind, J.K. Organization is committed to
the cause of human advancement.
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10. 2.3: INTRODUCTION TO THE COMPANY:J.K Tyre & Industries Ltd is the
flagshipcompany under the umbrella of J.K organization.It has been established in 1977 by
late Jugilal and Kamlapath Singhania. Jk Tyre and Industries is a mega corporate entity that is
emblematic of excellence, diversification and pioneering new technologies. A part of JK
Organization which ranks among the top private groups private groups in India, J.k Tyre and
Industries is committed to self reliance and follows an ethic that views customer satisfaction
as an index of achievement.
Over the years, the company has expanded and diversified its business portfolio. It has
developed into a multi product, multi-location corporate entity comprising of number of
business divisions.
2.4: GENERAL INFORMATION:
Ever since its inception it has been JK Tyre's belief in the value of technological superiority
that has made it grow by leaps and bounds. This division produces and sells tyres and tubes
under the brand name "JK Tyre" for Truck, Buses,
Passenger Cars, Jeeps, Light Commercial
Vehicles, Multi Utility Vehicles and Tractors.
The company pioneered Steel Radial Technology
in India in 1977 and continues to be the industry
leader in the Radial segment in India. JK Tyre is
the only Tyre Manufacturer in the country to
produce high performance 'T' & 'H' -rated steel
radial tyres.
JK Tyre has consciously followed a policy of
continuously modernizing and expanding its tyre
manufacturing facilities to retain its edge in the
market place.
Our customer base covers virtually the entire Original Equipment Manufacturers (OEMs) in
India together with Replacement Market for four wheeler vehicles, Defense and State
Transport Units. Besides India, we have a worldwide customer base in over 45 countries
across all 6 continents.
To keep pace with the market demand as well as technological leadership in Indian market,
J.K. Industries acquired Vibrant Tyres Limited, Mysore in 1997. J.K. Industries and Vibrant
4

11. Tyres Limited are the only tyre companies in India to have received all three ISO 9001, QS
9000 and ISO 14001 certificates. This indeed is a true reflection of our commitment to system
oriented approach. The company has a technical collaboration with M/s Continental AG,
Germany, which is among the top five tyre manufacturers in the world to keep pace with latest
technological developments. To stay at the forefront of technological advancements a state of
art Research & Development Centre, HASETRI, was set up, which remains the nerve centre
for providing cutting edge technology. In a short span of time it has emerged as the 17th
largest tyre manufacturer in the world an achievement in itself.
JK Tyre is a leading radial manufacturer and the first in the world to be awarded the
OS 9000 for multi- location operation. It is also the first tyre manufacturer in the world to get
the ISO 9001 certification for its entire operation.
JK Tyre has consciously followed a policy of continuously modernizing its tyre
manufacturing facilities to retain its edge in the market place.
Also, JK Tyre is the largest exported tyre brand from India. It was awarded the
CAPEXIL’s Highest Exported award for 1997-98 by FIEO. It enjoys prefer premium brand
status in truck Bias market in USA and across many markets in Africa, Middle East and South
East Asia.
Ever since its inception it has been JK Tyre's belief in the value of technological
superiority that has made it grow by leaps and bounds. This division produces and sells tyres
and tubes under the brand name "JK Tyre" for
Truck, Buses, Passenger Cars, Jeeps, Light
Commercial Vehicles, Multi Utility Vehicles and
Tractors.
The company pioneered Steel Radial Technology
in India in 1977 and continues to be the industry
leader in the Radial segment in India. JK Tyre is
the only Tyre Manufacturer in the country to
produce high performance 'T' & 'H' -rated steel
radial tyres.
JK Tyre has consciously followed a policy of
continuously modernizing and expanding its tyre
manufacturing facilities to retain its edge in the
marketplace.
5

12. Our customer base covers virtually the entire Original Equipment Manufacturers (OEMs) in
India together with Replacement Market for four wheeler vehicles, Defence and State
Transport Units. Besides India, we have a worldwide customer base in over 45 countries
across all 6 continents.
To keep pace with the market demand as well as technological leadership in Indian market,
J.K. Industries acquired Vikrant Tyres Limited, Mysore in 1997. J.K. Industries and Vikrant
Tyres Limited are the only tyre companies in India to
have received all three ISO 9001, QS 9000 and ISO
14001 certificates. This indeed is a true reflection of
our commitment to system oriented approach. The
company has a technical collaboration with M/s Continental AG, Germany, which is among
the top five tyre manufacturers in the world to keep pace with latest technological
developments. To stay at the forefront of technological advancements a state of art Research
& Development Centre, HASETRI, was set up, which remains the nerve centre for providing
cutting edge technology. In a short span of time it has emerged as the 17th largest tyre
manufacturer in the world an achievement in itself.
2.4Their plants:
With three plants located in Rajasthan,
Madhya Pradesh and Karnataka, JK Tyre is
the largest manufacturer of truck and bus tyres
in India. The truck and bus tyres produced
account for nearly 74% of the total tyre
business in India, thus giving JK Tyre an
undisputed position. Additionally, JK Tyre is
the only manufacturer of truck/ bus steel radial
tyres, and the second largest manufacturer of
4-wheeler tyres in the country.
Also, JK Tyre is the largest exported tyre
brand from India. It was awarded the CAPEXIL's Highest Export Award for 1997-97 by
FIEO. It enjoys preferred premium brand status in Truck Bias market in USA and across
many markets in Africa, Middle East and South.
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13. 2.7 JK TYRE VISION AND MISSION:
JK TYRE VISION:
JK TYRE MISSION:
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14. 2.8 ORGANISATIONAL CHART
ORGANISATIONAL CHART OF JK TYRE INDUSTRIES, GUWAHATI :
8
Area Manager
Service
Engineer
Sales
Officer (1)
Sales
Officer (1)
Sales
Officer (1))
Sales
Officer (1)
Sales
Officer (1)
(Commercial Staff)

15. 3. HISTORY OF TYRES
3.1 THE HISTORY OF THE TYRE:
The following chronicles the development of the tyre as we know it today. RW Thomson
invented and patented the Pneumatic Tyre in 1845. His first design used a number of thin inflated
tubes inside a leather cover (illustrated). This design actually had its advantages over later designs. It
would take more than one puncture to deflate the whole tyre, and varying the pressures could alter
the ride conditions.
It was not until the late nineteenth century, 1888, that John
Boyd Dunlop invented the Rubber Pneumatic Tyre. Despite
these technological breakthroughs the solid rubber tyre continued to be the dominant tyre and it was
not until 1889 that the pneumatic tyre caught on.
Dunlop first advertised his tyres in December 1888 in the Irish Cyclist, and in May of the following
year the Tyre had its first breakthrough. A Belfast Cycle Race was won on pneumatic rubber tyres,
and by now the public were starting to take note.
Unfortunately the original tyre had its drawbacks. The inner tube was difficult to get at because the
tyre was stuck to the wheel. In 1890 CK Welsh patented the design of a wheel rim and outer cover
with inextensible lip. By now we had the basics for today’s tyre. Over the years the tyre has
developed into today’s high technology offerings. Two of the most important technical developments
include Michelin’s creation of the radial tyre with its vastly superior grip in 1948, and when Dunlop
did away with the inner tube on car tyres in 1972.
Time has given the motor industry tyres capable of many different applications. This ranges from
High Speed Racing such as Formula One to Heavy Plant Usage on vehicles as large as a house. All
tyres deliver a comfortable ride, relative puncture resistance, wear and performance. The importance
of a tyre must not be taken for granted. After all a tyre is your vehicles only point of contact with the
road.
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16. 3.2 TYRE TECHNOLOGY:
RUN FLAT TYRE:
Several Tyre Manufacturers have developed tyres, and tyre systems that allow a vehicle to
continue moving despite a loss of pressure. There are two different approaches:
1. Reinforce tyre sidewall manufacturer of thi8s include: Bridgestone, Continental, Goodyear, Dunlop,
and Pirelli.
2. Rubber clip to your rim manufacturers of this include Michelin. All Run flat technology must
operate in tandem with tyre pressure warning systems.
1. Reinforced Tyre Sidewall:
The Diagram below shows The Dunlop DSST system for run flat. These tyres can be placed on any
rim. The sidewall is reinforced allowing the tyre to support the vehicles weight. The tyre is
constructed with new rubber compounds that prevent tyre destruction with excessive flexing. Run
Flat Tyres allow a vehicle with complete loss of tyre pressure to handle effectively. Braking,
acceleration, and steering behaviour remain unchanged. Mobility is maintained even after a
puncture, but you must refer to each individual tyre’s guidelines from the Manufacturer.
Dunlop DSST Tyre Tyres that carry this technology include the Bridgestone RFT series, Continental
SSR series Dunlop DSST series, Goodyear ROF series, and the Pirelli Euphori@ series.
2. Rubber Clip to your tyre rim:

17. The rubber clip prevents the tyre rim cutting into your tyre when you experience a loss of
pressure. This system has been developed by Michelin and is known as the PAX System. Like the
reinforced sidewall it operates in tandem with automated tyre pressure monitors.
Why fill my tyres with Nitrogen?
Why would you want to do this? The benefits of Nitrogen filling are as follows:
 Improved comfort of ride
 Improved safety
 Increased fuel savings
 Improved life of tyre
Nitrogen has long been the accepted gas medium for filling aircraft tyres, racing tyres and heavy
mining and construction vehicle tyres. Nitrogen is used for safety reasons and to ensure that tyres are
always at a constant pressure. Compressed air, the traditional medium for inflating car tyres, contains
both oxygen (21%) and nitrogen (78%).
The rubber tyre is like a membrane, through which oxygen permeates three times faster than the
nitrogen. The result is that the oxygen slowly leaks out through the rubber walls, and the under -
inflation leads to higher tyre wear with a consequent decrease in safety and comfort, and higher fuel
costs.

18. Truck & Bus:
Bridgestone is one of the first tyre manufacturers to prepare itself for the latest demands in
the Truck & Bus industry with the latest technology.
We are proud to present our brand new state-of -the-art BSelect Tyre Centre & SA State
Office located at Wingfield, SA. This Tyre Centre is Bridgestone Australia's largest Truck & Bus Service
Centre. With 8 truck bays, having B-Triple capabilities, servicing any vehicle configuration is not an
issue. A truck driver's lounge with shower facilities also allows you to get that necessary break &
opportunity to freshen up whilst we carry out the work on your vehicle. Also the service centre has 3
passenger car bays and 1 passenger car wheel alignment bay with a separate entrance to round out
all servicing needs.
New Truck & Bus Tyres:
Bridgestone strongly supports the modern transport operator with cost -efficient, hi-tech
solutions to the increasing demands of road transport not only today but in the future. Refer to Truck
Tyre specifications for details.
Featured Tyre:
Introducing the new Bridgestone R150II As part of Bridgestone's philosophy of continuous
improvement Australia’s most popular line-haul steer tyre, the R150, has been revised for improved
performance. Building on the ground breaking performance and market leading popularity of the
R150 (see results of Bridgestone's 2004 TBR in the brochure) the R150 II delivers greater mileage and
superior irregular wear resistance.
R150II Specifications Brochure R150 Specifications Brochure Bridgestone Select Truck Centre
Wingfield S.A.

19. 4.DISTRIBUTION DEPARTMENT OF THE COMPANY
4.1: General Introduction to the department: Placing of goods and services where they are
needed and when they are wanted is very important function of the distribution department of
the company. The distribution department of the company has to perform all the functions
related to the distribution of their products i.e tyres and how toto serve their customers in the
best possible ways. The distribution department of the company focusses on the customers
needs and tries its level best to provide services to the customers as early as possible. The
distribution department of the company consists of Didtrict manager, sub-district
managers,service engineers for different segments of tyres, and operational staffs. They all
work together and in coordination to satisfy their dealers and provide them with best service.
4.2 Functions of the Department:
1. Match assortments and quantities of goods designed by customers with these available
for distribution.
2. Promote the products they carry through catalogues trade shows and advertising.
3. Conduct research on markets to locate and determine the requirement of potential
customers.
4. Sell the products through personal presentation
5. Physically distribute the product through sorting and transporting it.
6. Serve products and advice on their use as required.
4.3 Organizational set up.
DISTRICT MANAGER
SUB DISTRICT MANAGER
SERVICE ENGINEER
Operational Staff (8-10)
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20. 4.4 Pictures of their C&F
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21. 5. TOPIC THEORY
5.1 INTRODUCTION: The typical geographic separation of the manufacturer or producer
from the ultimate consumer requires some means for bridging the gap. The movement of
goods and services from the place of production through middlemen to the ultimate
consumers/users has been thought of as a channelized flow. At present most of the producers
sell their products to the consumer through a host of marketing intermediaries performing a
variety of functions-buy, take title to, resell, negotiate etc. producers produce the products and
finally make them ready for the market. The methods and routes to be adopted to bring the
products to the market-to the ultimate and industrial users must be determined. This involves
establishing distribution strategies, including channel of distribution and physical handling
and distribution.
Distribution decisions have a broad impact on the marketing program of a firm. The object of
the distribution strategy is to the right customer. A product cannot reach its target marketer if
its distribution is not planned and carried out carefully. Distribution channel decisions which
to most critical decisions which intimately affect all the other marketing function.
Distribution system had two components: (i) channels of distribution and (ii) physical
distribution. Channel of distribution. By channel of distribution we mean the intermediaries or
the consumers, including transportation, warehousing and inventory management. In simple
terms “Marketing Channel” or “channel of distribution” is a path traced in the direct or
indirect transfer of ownership to a product, as it moves from a producer to ultimate
consumer/industrial users.
Definitions:
1. In the words of Stern and El. Ansary “Marketing channels are sets of interdependent
organizations involved in the process of making a product or service available for use
or consumption.
2. According to Rachman, “Marketing channels are the path that products follow on their
way from producers to the consumers or industrial users”.
3. In the words of William Stanton, “a channel of distribution for a product is the route
taken by the title to the product as it moves from the producer to the ultimate
consumer or industrial user”.
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22. 5.2 Characteristics:
1. A distribution channel requires at minimum a seller and a buyer. The buyer may be a
consumer or and industrial user.
2. It includes besides buyers and sellers, various middlemen.
3. The basic transaction in a distribution channel is the exchange of ownership, or title of
goods. Middlemen play an active role in the transfer of ownership.
4. The channel for a product extends only to the last person who buys it without making
any significant change in its form. When its form is altered and another product
emerges, a new channel is started (William Stanton).
5. One of the objectives of distribution channel is to create “transactional efficiency”.
5.3 Role and Importance:
A channel of distribution plays an important role in the marketing of goods and services
because the ultimate goal of all marketing activities is to effectuate the transfer of ownership
of goods to customers. The importance of distribution channel can be explained under the
following headings:
1. Creation of time and place utility: The value utility of a product is created by
production activities, but time and place utilities are created by distribution channels.
2. Innovative product: The new product offered at an attractive price would be of no
use unless there is an efficient distribution system.
3. Easy searching: In marketing, both seller and buyer look for each other to make a
transaction. Distribution channels greatly facilitate this search process by bringing
both parties at one point.
4. Smooth flow of goods: Distribution channels also smooth out the flow of products by
creating possession, time and place utilities.
5. Bridges the gap: Employing distribution channel bridges the discrepancy between the
assortment of goods offered and the one demanded by consumers.
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23. 5.4 Functions of distribution channel:
The distribution channel performs the following function:
1. Market information: Channels of distribution can play a vital role in marketing
research. They can collect and disseminate various market information about
potential and current customer’s competitors and other forces operating in market.
2. Promotion: Middlemen sometimes motivate and train retailer’s sales staff.
Retailers undertake local advertising and special demonstration to promote
product.
3. Customer service: channel personnel provide advice on new and existing
products. They help in test marketing and also help in proper positioning of
products against competitors and suggesting which products to remove from the
market.
4. Pricing: Middlemen often have a strong say in pricing decisions. They stipulate
their required market ups, trade discounts and off-season discounts.
5. Distribution: Channel members assist in distribution activities such as
transporting, warehouse, and customer contact and inventory and stores
management.
Distribution channel also perform several other important functions such as,
it helps ion Production Planning, making pricing decisions, negotiation, sorting,
assorting, financing, physical possession of goods, risk taking and also in the
introduction of new products.
5.5 Types or classification of Distribution channel:
A producer has to find out the most economical form of distribution. There are a number of
different channels open to the marketer. These can be grouped under two major headings:
1. Direct selling by manufacturers (or direct channel): In the most direct channel are
no intermediaries between the producer and the final consumers, not through
middlemen. Direct channels are most common in industrial marketing. Industrial
components, heavy equipment, machinery installation are generally sold on a direct
basis. Direct channels are also undertaken in the case of agriculture.
Bata Ltd, calica mills, Raymond’s, DCM, Eureka Forbes Ltd are some of the concerns
employing direct channels in India.
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24. A company can adopt the following means for direct selling.
 Own Retail shops
 Personal selling door-to-selling)
 Mail order selling
 Franchised shops
 Telephone selling (telemarketing)
2. Indirect Selling through Middlemen (or Industrial Channels): Indirect selling
can be performed through two types of outlets:
(a)Merchandise agents and brokers
(b) Merchant wholesalers
(a) Merchant agents and Brokers: Producer may entrust the selling job to someone
else. Like selling agents, brokers, commission merchants etc. These are independent
businessmen who work on a commission basis. They do not own title to the
products they sell, although they may physically handle them. These facilitate
selling functions by bring and sellers together.
(b) Merchant wholesalers or trade channels: These are the firms we usually refer to
as wholesalers. Jobbers or distributors. They typically are independent owners and
they take title to the products they handle. They firm the largest single segment of
whole selling firms. If a producer chooses to use this trade channel, he has a choice
of following channels:
1. Producer Retailer Consumer
2. Producer Wholesaler Retailer Consumer
3. Producer Wholesaler Semi-wholesaler Retailer Consumer
4. Producer Agent Retailer Consumer
5. Producer Agent Wholesaler Retailer Consumer
6. Producer Wholesaler Consumer
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25. These are shown in the figure given below:
Manufacturers/Producers
Agents/brokers
Fig: Distribution Channels
5.6 Types of Intermediaries:
As mentioned earlier, there are served types of marketing intermediaries. They are:
1. Sole-selling agent
2. Marketer
3. C&F agents (CFA’s)
4. Redistribution stockiest
5. Stockiest/distribution/wholesaler
6. Semi-wholesalers
7. Retailer /dealer
8. Broker
9. Franchises
10. Authorized representation
11. Commission agents
12. Jobbers
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Wholesalers/distribution
Retailers
Retailers
Consumers and organizational end-users

26. Sole-Selling Agent: When a manufacturing prefers to stay out of the marketing
and distribution task, he appoints a suitable agency as his sole-selling agent/marketer
and entrusts the marketing job with him. A “sole-selling agent” or a “marketer” is
usually a large marketing intermediary with large resource and extensive territory of
operation large resource and have one or more marketers: but when he opts for a sole-selling
agent, he appoints just one agency as the sole-selling agent.
C&F Agents (CFA’s): In many cases manufacturers employ carrying and
forwarding agents’ often referred to as C&F agents or CFA’s. The CFA’s be described
as special category wholesalers. They supply stock on behalf o the manufacturer or the
wholesale sector or the retail sector. Their function is distribution. Their distinguishing
characteristic is that they do not resell products but act as the agent/representative of
the manufacturer. They act on behalf of the manufacturer and as his extended arm. In
essence, they are manufacturer branches.
Wholesalers/Stockiest/Distributor: A ‘wholesaler’ or ‘stockiest’ or
‘Distributor’ is also a large operator but not on a level comparable with a marketer or
sole selling agent, in size, resources, and territory of operation. The wholesaler/
stockiest/ distributor operates under the marketer-sole selling agent, Where such an
arrangement is used by the manufacturer.
Semi-Wholesalers: Semi-Wholesalers are intermediaries who buy products
both from producers or wholesalers in bulk, break the bulk and resell the goods
(mostly) to retailers in assortments needed by them. Like the wholesalers, semi-wholesalers
too perform the various wholesaling process. In some cases, they may also
perform the retailing functions.
Retailer/ Dealer: Retailers sell to the household/ ultimate consumers. They are
at the bottom of the distribution hierchy, working under wholesalers/
Stockiest/distributors/ semi-wholesalers as the case may be. In case where the
company operates a single-tier distribution system, they operate directly under the
company. They are also sometimes referred to as dealers or authorized representatives.
20

27. 5.7 Types of channel levels in distribution channel
The producer and the final customer are part of every channel. The length of a channel is
designated through the length of a channel. A distribution channel can have any number of
levels. Some of which are described below:
a) 0-level channel: A zero-level channel is also called marketing channel. It consists of a
manufacturer selling directly to the final customer. The major examples are door-to- door
sales (eureka Forbes), home parties (Tupperware), mail order (Otto Burlington),
telemarketing (ICICI Banks cards), T.V selling (Amazon, India times), and manufacturer-owned
stores (Bata, Indian oil, Bharat petroleum petrol pumps).
b) One-Level channel: A one-level channel contains one selling intermediary. These
intermediaries may be retailers or distributors. This is the most common channel in case of
consumers durable such as textiles, shoes, readymade garments, and so on. In case of
textiles most of the mills have their retail outlets throughout length and breadth of the
company.
c) Two-level channel: A two-level channel contains two intermediaries. In consumer
markets, these are typically a wholesaler and a retailer. The companies producing
consumer non-durable items use this where the wholesaler stock the production in
different parts of the nation or a region and from there, the products are supplied n smaller
quantities to the retailers and who in turn sell to the consumers.
d) Three-level channel: A three-level channel contains three intermediaries. For e.g. in
meatpacking industry wholesalers sell to jobbers, who generally are not served by large
wholesales.
Distribution channel with even more levels exist. Typical private food distribution systems
may have five to six levels consisting of itinerant merchants, commission agents,
wholesalers, semi-wholesalers, and retailers. As the number of levels increase, the level of
difficulty of information sharing and coordination also increases. However, the cost of a
channel system is not necessarily proportional to its length/levels.
21

28. 0-level 1-level 2-level 3-level
Fig: Consumer marketing channel
MANUFACTURER
WHOLESALER
JOBBER
RETAILER
MANUFACTURE
R
0-level 1-level 2-level 3-level
Ma nufa cture r’s
representa tive
Industrial distributor
DISTRIBUTORS
Fig: Industrial Marketing channels
22
MANUFACTURER
CONSUMER
MANUFACTURER
WHOLESALER
RETAILER
CONSUMER
RETAILER
CONSUMER CONSUMER
MANUFACTURER MANUFACTURER MANUFACTURER MANUFACTURER
Ma nufa cture r’s
representa tive
Industrial customers
Industrial customers
Industrial customers Industrial customers

29. A. Number of contacts without a Distribution
1
2
3
4
5
6
7 8
9
Customers
Manufacturer X Customers =3x3=9
Manufacturer =Customer =3=3=6
23
Manufacturer
Manufacturer
Manufacturer
Customers
Customers
Manufacturer
Manufacturer
Manufacturer
Customers
Distributor Customers
Customers

30. 5.8 Factors governing the choice of distribution:
The factors governing a choice of distribution channel can be grouped into four segments as
product, market, and institutional unit and environmental. The product factors are: physical
nature, technical nature, the length of product line, the market position. The market factors:
the existing market structure, the nature of the purchase deliberating availability of the
channel, members the post service ability. The unit factors are: the companies’ reputation, the
company marketing policies. The environmental factors are: economic factors, the legal
restrictions and fiscal policies.
5.9 Factors governing the choice of an Intermediary:
The major factors governing the choice of an intermediary are: (1) the market served, (2)
the market reputation, (3) Continued existence,(4) The Specialization in selling, (5) the sales
policies, (6) the nature of sales organization, (7) the financial position, (8) The facilitate
available.
5.10 The channel policies and Strategies:
The channel policies and strategies can be classified into two categories as distribution
intensity based and others. The distribution intensely based policies and strategies are: (1)
intensive distribution policy, (2) Selective distribution policy, (3) Exclusive distribution
policy. On the other hand other policy options are: (3) the policy of full-line forcing, (4) the
policy of reciprocity, (5) Dual and multiple distribution policy (6) the policy regarding
conditions of transactions.
24

31. 5.11 Other dimensions of channel management:
1. Channel Compensation: channel Compensation deals with the financial and non-financial
compensation payable to the channel members. There should be clear understanding about the
same between, the parties. The basis of payment shall be extended of functions performed.
The forms of compensation may be commission of discount.
2. Channel motivation: channel motivation stands for the encouragement given to the
channel members to increase the sales and profits and reputation of the concern of the channel
commander. Though there are many ways of motivating the channel members to better
performance, the best form of incentives can be profit margins, commissions, discounts and
exclusive franchise.
3. Coordinating: channel coordination stands for the integration of channel operations with
those of channel commander so that all the3 activities directed at the market are funneled for
the maximum market impact. In other words, the conflict that arises is to be killed at any rate.
The causes of conflict are three: (i) the strong desires at high level to cover fixed costs. (ii) By
passing the intermediaries though such by phases is not allowed and (iii) Different
interpretation regarding role of intermediaries under different status and financial conditions.
The effects of conflict are disastrous. It kills the cooperative spirit, faith, and trust. The effects
of are disastrous. It kills the cooperative spirit, faith, and trust. The firms respond to such
channel conflict is one of the ways; these ways are withdrawal repression internal changes_
use of power. The conflict management strategies are: (1) bargain strategy (2) boundary
strategy (3) penetration strategy, (4) supra organization strategy.
4. Channel Control: channel control implies a course of planned efforts of channel
commander to ensure that the channel intermediaries behave with him, his consumers and
other channel member in the manner desired by him. The measures of control are : use of
power bases after deciding the nature and extend of control needed. These power bases are
reward-coercive-expert- identification and legitimacy.
25

32. 6. Distribution Channel of J.K Tyres Ltd
6.1. Distribution Patter of J.K Tyres:
As per the study conducted, it was found that J.k Tyres in Guwahati is a C&F (carrying and
Forwarding agent) . a carrying and forwarding agent can be described as a special category wholesaler.
The supply stock on behalf of their manufacturer to the dealers and through them directly to the
manufacturer.
The C&F in Guwahati , is the main C&F in the entire North-East. And their other C&F’s in North-East
are Shillong, Agartala,and Jorhat.
J.K Manufacturer
C&F’s
Dealers
Customers
Fig: Distribution channel of J.K tyres
In addition to supply through C&F’s. J.K Tyres is also engaged in direct selling. They are engaged in
direct selling through O.E fitment with Ashok Leyland, Swaraj Mazda, Tata, Maruti, Wagon R, Alto
etc
J.K Manufacturer use 2-level channel, which consists of manufacturer, godown, dealer, and customer.
Manufacturer C&F’S Retailer Consumer
26

33. These channels are selected on the basis of market to be captured. They are able to capture the
market very efficiently and distributed to different regions/areas through their dealers. Their
tyres are nearly exported ton80 countries. And they market the products on order, i.e. on the
basis of order received. And the C&F located in Guwahati distributes the tyres to the entire
North-East region.
6.2 MAP SHOWING J.K TYRE’s OPERATION IN INDIA IN INDIA
27

34. 6.3 THEIR OPERATION IN NORTH-EAST INDIA:
28

35. 7. Research Methodology
7.1: Research Objectives: As a management student, it has been thought to is that the
systematic process of any work is done through setting the objectives. Without framing or
setting the objectives and prioritization the assigned job, many come out with unhappy results.
Apart from this, one proceed to do any assignments or project works, if the objectives are not
set and given due importance.
Keeping in mind that, with the definite objectives of the work, the works are completed in a
clear cut way. I have framed some objectives to study the “distribution Channel” of “J.K tyres
Ltd” which are as follows:
1. To know about the type of distribution channel they use.
2. To know about the functioning of the various distribution channels
3. To know their procedure of working
4. To know that5 how they help in bringing the producers and the consumers together
5. To know that whether they are able to maintain a good relation with customers
6. To know the problems that they face while distribution the products
Thus, the objectives so set up for the given topic were helpful in carrying out the project work
successfully. Without the setting of objectives, systematized manner
7.2 Research Methodology: There are various methods available for collecting the
information. The methodology used in conducting this was:
 Questionnaires
 Observations
 Interview
Basically, there are two types of data methods: Primary and Secondary. My
information’s are collected from both the sources (primary and secondary).
 Primary Data: The primary source includes:
1.Questionnaire: In this method a set f questions are prepared with a view to collect the
requisite information. For using this method, I first made the questionnaire, get it typed in the
computer and
29

36. then obtained the printed questionnaires were then given to the respondents to fill
it.Questionnaire can be classified into four main types:
a) Structured- non- disguised
b) Structured-disguised
c) Non structured-non-disguised and
d) Non-structured-disguised
Another important aspect in the questionnaire method is the type questionnaire methods is the
type of questions used. Questions can be classified into:
 Open-ended questions and
 Close-ended questions
In collecting the information about my project I used. Structured-non-disguised questionnaires
and the type of questions which I used in the questionnaire are mostly close-ended questions.
All the close-ended are multiple choices and the type of open-ended questions is completely
unstructured.
2. Direct interviewing: oral interviewing (whether formal or informal) is one of the best ways
to collect the information. Most part of my information’s are collected with the respondents
3. Simple observation: observation is another important technique of collecting the
information. Some of my in formations are gathered from simple observations. Some things
are easily observable but some are not. Whether things I have observed are added to my
information collected.
 Secondary data: secondary data are those data which have been gathered earlier for some
other purpose. The primary data collected by one person may become the secondary for
another.
For my study, I made use of these secondary sources too. The data I gathered through these
secondary sources are the company profile, area detail, company’s goals and objectives etc.
30

37. Design of Research
31
Primary data Secondary data
Sources of data
i. Questionnaire
ii. Observation
Data needed are founded
I. Company
II. Internet
Data analysis
By graphs,
histograms,
pictures
Period of time

38. 8. Methods of data collection
8.1 Introduction:
In every aspect of the project which is designed on the basis of some
observation or research, is made with adopting particular methods and techniques, while
doing any research or project work, every information should be unbiased and not prejudiced,
based on truth and veracity
.in J.K Tyres Ltd (company study was done systematically and thoroughly on the company’s
distribution department companied dealers in relation to the topic, which is conducted at the
company and design a data collected source of data information.
8.2: Methods of data collection:
Both primary and secondary sources are used for data collection
1. Questionnaire method
2. Discussion with the guide
3. Companies document
4. Sampling techniques : for this study I selected random sampling method
 Random sampling method: a random sampling technique is one in which sampling units
are selected by chance for which there is known, non-zero probability of selection.
 Sample size: after determining the sampling methods, the next step to be taken care of is
to take an important decision regarding the sample size or adopting a technique about the size
or the sample.
Number of employees at J.K Tyres Ltd: 15
Number of persons/employees evaluated:7

39. 32
9. Data Analysis and Interpretation
After the conduction of the project work through various methods, the important aspects as
regards to the topic were found out. All necessary details are described one by one below:
A. Findings from observing the C&F and interviewing the managers:
1.Role of distribution channel: A channel of distribution plays as important role in the
making of goods and services because the ultimate goal of all marketing activities is to
effectuate the transfer of ownership of goods to customers. And in this regard, it was found
that; distribution channel plays a vital role in product distribution. It serves the very basis of
all the essential functions that are needed to deliver the product to the final consumer/user.
2.Type of distribution: A producer has to find out the most economical form of distribution.
There are a number of different channels open to the marketer; which are grouped under two
major categories, namely direct and indirect selling. And as per the findings, J.K Tyres in
Guwahati is a C&F (carrying and forwarding agent). A carrying and forwarding agent can be
described as a special category of wholesalery. They supply stock on behalf of their
manufacturer to the dealers and through them directly to the customers. They act as agent/
representative of the manufacturer.
The C&F in Guwahati is the main C&F in the entire North-east. And the other C&F’S are in
Shillong, Agartala, Jorhat.
J.K Manufacturer
C&F’s
Dealers
Customers
Fig: Distribution channel of J.K Tyres

40. In addition to supply through C&F’S. J.K Tyres is also engaged in direct selling. They are
engaged in direct selling through O.E fitment with Ashok Leyland, Swaraj Mazda, Tata,
Maruti, Wagon R, Alto etc
3. Channel Level: The producer and the final customers are part of every channel. The length
of a channel is designed through the length of a channel. A distribution channel can have any
number of levels which many varies between 0-6.
And, as per the study conducted it was found that J.K Manufacturer use 2-level channel,
which consists of manufacturer, godown, dealer, and customer.
Manufacturer C&F’S Retailer Consumer
4. Basis for selecting distribution Channel: The channels are selected on the basis of
market area to be captured. They are able to capture the market very efficiently and
products are efficiently distributed through their dealers. Their tyres are nearly exported
ton80 countries. And they market the products on order, i.e. on the basis of order received.
And the C&F located in Guwahati distributes the tyres to the entire North-East region.
5. Product Distribution: J.K Tyres are distributed nationally as well as internationally. J.K
Tyres are nearly exported to 80 countries. And they market the products on the basis of
order received. And the C&F located in Guwahati distributes the Tyres to the Entire
North-East region.
6. Relation with international; customers: In this regards, it was observed that, J.K Tyres
maintain good relation with its customers. From the survey conducted, it can be conducted
that J.K tyres maintain a good relation with its dealers; and good relation with its dealers;
and there is no conflict between them.
7. Channel strategy: Designing appropriate channel strategy is very important aspect in
distribution. And J.K tyre sales design appropriate channel strategy for their distribution.
For effective functioning, they rain and motivate their international to perform efficiently.
They also provide them with attractive scheme all throughout the years, which act as
motivation for them. And, for the customers, they replace, the tyre if a manufacturing
defect is found.

41. 8. Types of Market: J.K Tyres markets, it product through:
a. O.E- Fitment ( Original Equipment Fitment): In O.E Fitment , J.K Tyres has tie-up
with Ashok Leyland, Swaraj Mazda, Tata, Maruti, Wagon R, Alto etc
b. For Government orders: One of their important markets is order from government.
They sometimes receive orders from government for, State Transport service like DTC
etc. at present; they have an order of tyres for I-bus for common wealth games.
c. Replacement Market: This is the most important and maximum revenue market for
the organization. Replacement market means, the market for replaceable tyres, as the
tyres have a definite life span, they need to be replaced after that period of time and in
turn creates the most important market for them.
pie showing the percentage of
the differntn type of markets
O.e Fitment
market
25%
Govt orders
19%
Replacemant
market
56%

42. B. Findings from surveying the Market and interviewing the dealers:
1. Are the dealers satisfied with the Distribution channel provided to them?
 Sample Size-5
Highly Satisfied-1
Satisfied-3
Dissatisfied-1
Highly Dissatisfied-0
pie showing the satisfactory
level of dealers in context
to distribution channel
0%
20%
2. Do they apply any terms & conditions for Distribution:
Sample size-5
Yes-0 No-5
In this regard it was found that J.K Tyres does not apply and terms and condition to the dealers for
distribution.
3. Is, there any conflict arises between you and your distributor?
Sample size-5
20%
60%
Highly stisfied
Satisfied
Dissatisfied
Highly disstisfied

43. No – 5 Yes - 0
According to the study conducted it was found that, there is no conflict between the dealers and
distributors. They have good relation between them, and the distribution department of J.K tyres
also keeps consideration that the dealers are satisfied in all possible ways.
4. Their Operation in North-East: The Company started its operation in North-East India in 1977. It
has regional set-up in Guwahati, Shillong, Dimapur, Agartala which are operated by C and F
agent.
According to the company, the total market potential of North-East for various tyre segment are
as follows.
Truck radial 17312 (approx)
LCV 6060 (approx)
Radial 11000 (approx)
Passenger Bias Tyre 2250 (approx)
truck radial,
17312
Passenger
Bias tyre,
Radial , 11000
2250
LCV, 6060

44. 4. Average Monthly sales (in units):
Truck Radial : 3000
L C V Tyre : 1474
Radial : 5850
Passenger Bias Tyre : 800
Truck Radial
27%
LCV Tyre
13%
Radial
53%
Pessenger
Bias Tyre
7%
pie showing Average Monthly
Sales in Units

46. 9. Limitations

47. Despite of the meritorious conduct of the project, certain hindrances occupied some places in my
work. Even though I tried with my heart and soul to put my best effort in the work, yet I could not
escape from the limitations that surrounded me. The following are the limitations that
surrounded me. The following are the various obstacles that hampered me during the course of
my project:
1) The Managers were too busy with their work
2) It was difficult to seek appointment on a particular day and time; we had to reach the place
at anytime, whenever the manager finds time free time for our training.
3) The Distance of the office from the Godown was very much, s o we had to face difficulty in
reaching there.
The following limitations so prevailed were only constrains that were hampering me in the
preparation of project. But the best efforts that I could put in my work was to some extent relived of
the other limitations that could have been occurred.
10: Suggestions

48. After the competition of the various references of the project, various circumstances in contrast to
the project were observed under the given circumstances:
1) It should try to locate its office premise near the godown for easy and fast delivery of the
products i.e. tyres
2) It should also try to maintain separate godown for different varieties of tyres. If not for all,
then at least for the major varieties of tyres.

49. Conclusion
It constitutes the last part of the project work done. And this project work has been made on the
‘Distribution Channel’ of J.K tyres ltd and is done using three main approaches, namely questionnaire,
interview and observation. From the given report of the topic, the following conclusions have be en
drawn:
1. Firstly, it can be concluded that the company has successfully carried out the policy of
distribution.
2. Secondly, it can be said that the company manages its distribution channel very well.
3. All the given policies and procedure of distribution proved to be beneficial for the company.
4. Lastly, the conclusion to be drawn is that all the dealers as well as the customers are highly
satisfied with the distribution policy of the company.
Thus, the following are the conclusion that have been drawn after completing the full project report
of the distribution of J.K Tyres Ltd

50. Bibliography
1. Beri G.C, “ Marketing Research”3rd edition (new delhi:Tata Megraw –hill publishing company
limited)
2. Daver S Rustom “Modern marketing Management”, 7th edition(new delhi:universal Book stall
1999.
3. Philip kotler-Marketing Management,10th edition (the Millenium edition) (new Delhi,
prentice-hall of India private Limited 2003.