Vikalp Bhardwaj
12DM-165
Section-7
A channel is an organized network of agencies and institutions which, in combination, perform all the activities required to link producers with users to accomplish the marketing task.
-(Bennett 1988).
This channel must be designed such that it delivers a level of value to the customer that creates a sustainable competitive advantage for the supply chain. It can take many forms depending upon the requirements of the customer. The relationship between the value of the product and the shopping experience is particularly important and the skill of the value chain is in the positioning of the total offer in a profitable way.
Our study of channel management of shaving cream was limited to Greater Ghaziabad region. There are many competing brands of shaving creams in the market. * Gillete- P&G (Market Leader) * Old Spice- P&G * Vi John (Popular brand as it is the cheapest) * Axe- HUL * Dettol- Reckett Benkeiser
Our mode of study was to go to do a field visit and get in touch with all the members in the entire distribution channel. We visited all the members of the channel in P&G as it owned two of the most popular brands in the market, Gillete and Old Spice.
CHANNEL LEVELS
The producer and the final customer are part of every channel. A zero level channel or a direct channel is one in which the product reaches the customers hand directly from the manufacturer. Shaving creams come under the FMCG sector and companies here usually follow four level channel where there is a manufacturer who manufactures the goods and sends it to the central warehouse in Rewari, Rajasthan. From there it is sent to the C&F agent in Dasna. From there it is sent to the distributor Surya Tradings near MohanNagar, Ghaziabad. On an average 4 trucks run two times a dayfrom the C&F agent to the distributor. From here they get it to the wholesalers who supply to the retail