Distribution Channel

A STUDY ON DISTRIBUTION CHANNEL
IN MAHINDRA & MAHINDRA LIMITED

AUTOMOTIVE SECTOR AT ZAHEERABAD, MEDAK DIST.
Dissertation report submitted to the OSMANIA UNIVERSITY. Hyderabad in partial

Fulfillment for the award of
MASTER OF BUSINESS ADMINISTRATION
Submitted By
B.RACHAIAH
H.T.No: - 91-05-105
DECLARATION
I declare that this dissertation report entitled “DISTRIBUTION CHANNEL”

in Mahindra & Mahindra Limited (Automotive Sector), Zaheerabad submitted to
MRKT Department, college of HOLY MOTHER P.G COLLEGE(Affliated to
Osmania University)Hyderabad is Originally done by me. The findings of the report are
based on the information collected by me during this study.
Date:
Place:
(
B.RACHAIAH)
ACKNOWLEDGEMENT
The completion of this study makes me to recall with gratitude several persons
who have extended their co-operation in one way or the other in this venture.
I am very much thankful to MR.SANJAY LAL, principal of HOLYMOTHER

P.G College, Osmania University, Hyderabad.
I express my sincere thanks to our marketing lecturer MR.NAGA RAJU, under

whose supervision and guidance this work was carried out.
I am indebted to Mr.K.P.N Rao, DGM – HR & IR. Mahindra & Mahindra

Limited, Zaheerabad, for allowing me to undertake my In-plant training (project work)
in their esteemed organization. First and foremost I acknowledge my deep sense of
gratitude to Mr.G.S. Naidu, Senior Manager – Sales Support for his valuable
guidance and all other members of the organization for having given me their untiring
timely support and helped me to successfully complete my project report.
.
(B.RACHAIAH)
DISTRIBUTION CHANNEL
CONTENTS
CHAPTER – I Page No
1. INTRODUCTION 1-2
1.1 . Objectives of Study
1.2 . Scope of Study
CHAPTER – II 3-5
2. UNIT PROFILE
CHAPTER – III 6 - 21
3. COMPANY PROFILE
STRUCTURE OF MARKETING DEPARTMENT 22
CHAPTER – IV 23 - 25
4. RESEARCH METHODOLOGY
CHAPTER – V 26 - 41
5. DISTRIBUTION THEORY
CHAPTER – VI 42 - 48
6. DATA ANALYSIS
CHAPTER – VII 49 - 50
7. CONCLUSION & SUGGESTIONS
APPENDIX 51 - 54
• QUESTIONNAIRE
• BIBLIOGRAPHY
CHAPTER – I
INTRODUCTION
1.1.OBJECTIVES
The survey is conducted in favor of MAHINDRA & MAHINDRA Ltd.

It is the one of the top automotive sector.
The survey was done with the following objectives.

• To deliver the goods [vehicles] in time.
• To study the most effective channel of distribution of vehicles.
• To give suggestion to develop companies performance in the marketing field.
• To find out the motivation factors which influence the buying behavior of the
customer.
• To get recognition in international level.
• To establish and maintain laboratories for purpose of research and development.
M.B.A, Osmania University 1

1.2.SCOPE OF THE STUDY
The Study was conducted to find out the problems faced by the dealers and to
know the attitude of dealers as well as suggestion from the dealers on the performance of
MAHINDRA & MAHINDRA Ltd. The present study is conducted in the Twin Cities
(Hyd & Sec), Zaheerabad and Gulbarga. The sample size was selected to be 5 with a
view that the time is a major constraint. The study is conducted in the following areas in
the following cities.
 VARIETY AUTOMOTIVES
Nagole-Uppal Ring Road, Hyderabad – 39.
 BHAVANI MOTORS
Mumbai Highway (NH-9),
Beside Indian Oil Pump, Miyapur, Hyderabad – 500 049.
 AUTOMOTIVE MANUFACTURE LTD

8571, RP road,
Secendarabad – 500003.
 PAVITH AUTOMOBILE
Near R.T.O. Check Post. X Road.
ZAHEERABAD – 502 220.
 AVINISH & COMPANY

Nehru Gunj, Gulbarga.

CHAPTER -II
UNIT PROFILE
UNIT PROFILE
• Unit Scenario:
The MAHINDRA & MAHINDRA Company is located at 108 Kilometers From the
State capital of Hederabad in AP at Zaheerabad. It has an area of 350 hectors land including
all facilities.
In July 1983 Hyderabad Allwyn Limited (HAL), a State Public Sector Undertaking of
A.P. Government entered into a technical and financial assistance Agreement with Nissan
Motor Company (NMC) Limited of Japan for manufacturingOf new generation of Light
Commercial Vehicles (LCVs) in India. The scope of Transfer stocks of imported kits procured
at favorable rates during the year 1962 Vehicles were sold. Although company achieved a
60% localization in its products, yet the raising value of yen continued to adversely effect its
financial performance.
At the same time the State Government was facing a severe financial crisis and both
the Financial Corporation and Industrial Development Corporation were facing massive cuts
in government findings. Therefore, in order to cover the closing down of units, the State
Government indifference to the State Industrial Policy decided to sell Allwyn Nissan Ltd.
(A N L) to capable of business houses, in this case preferably and established automobile

company.
M.B.A, Osmania University. 3

After that an intensive negotiation MAHINDRA & MAHINDRA LTD., the Country’s
leading manufacturing of Jeeps and Tractors entered into a Memorandum of Understanding
with HAL on 10th June 1988 and agreed to acquire 26% of share capital in ANL and there after
take control of the company’s management with this transfer of shares and management. The
Joint venture between HAL & NISSAN Motor Company was terminated and a fresh joint
venture Agreement was entered in to 7th November 1988 by M & M with NMC.
The name of the company was changed to MAHINDRA ALLWYN NISSAN LTD.
M & M finally took entire control of the operation of the Plant on 1992.
 Product Details:
Mahindra & Mahindra has modern facility at Zaheerabad, Near Hyderabad where
some of the important products are
• Mahindra FJ 470 DS4 High Roof Minibus.

• Mahindra Cabking 576
• Mahindra DI 3200
• Mahindra FJ Minibus
• Mahindra Tourister
• Mahindra Cab king 576 DI
• Mahindra Champion
• Mahindra Load King DI
• Mahindra Load King Super
• Mahindra Marshall 2000 Delux
• Mahindra Marshall DX Royale
 Future Focus:
Mahindra & Mahindra Company was to gain number one position in automotive
sector.
CHAPTER - III
COMPANY PROFILE
COMPANY PROFILE
 General Profile:
The Automobile Sector is one of the fastest growing manufacturing sectors in
India. In the 1990’s the industry witnessed an average growth rate of above 20% .
Indian Automobile Industry is characterizzzed by a very high 21% (75%) of two
wheeler production, ranking second only to Taiwan. India is also the largest
Manufacturer of Tracotrs. The world leaders in the sector are evincing keen interest in
establishing Manufacturing facilities for manufacturing and assembling components.
A politically stable and vibrant state, Andhara Pradesh is centrally located with the
support of Seaports, International Airports, assured and reliable power supply,
abundant water, broad base of auto component manufacturers, highly trained, skilled
and disciplined manpower and is therefore, the preferred location for Automobile
industries.
M/s. Ford, Mercedes, Benz, Daewoo, Fiat, Honda, Hyundai, Suzuki,
Mitsubishi, Opal, Peugeot, Proton, Skoda, Toyota etc., have already set up their
units in India. In the last two years, several joint ventures and collaborations have
been set up with investments to the tune of US $ 500 Million. About 10 percent of the
production in value terms are exported all over the world.

Company Product Details:
 Mahindra Scorpio
Bolero Range:
 Mahindra Bolero
 Mahindra Bolero Caper
Pick-up Range:
 Mahindra Utility
 Mahindra pick-up
 Mahindra NC 640 DP
 Mahindra pick-up CBC
Maxx Range:
 Mahindra Maxx
 Mahindra Maxx LX
CL Range:
 Mahindra MM 540/550 DP
 Mahindra MM 540/550 XDB
 Mahindra MM 540 DP
 Mahindra MM ISZ-Petrol Soft-Top.
Commander Range:
 Mahindra Commander 650 DI

 Mahindra Commader 750 ST
Hard Top Range:
 Mahindra Economy
 Mahindra Marshal
 Mahindra MM775 XDB
 Mahindra Three and Five Door Hard Top
 Mahindra Marshal 2000 Delux
 Mahindra marshal DX Royale

DISTIBUTION CHANNEL
Alternative Fuel Range:
 Mahindra CNG – Three Door

 Mahindra Bijlee
 Mahindra FJ CNG Mini Bus
Army Range:
 Mahindra Rakshak (Bullet – Proof Vehicle)

 Mahindra MM550 XD
Three Wheeler Range:
 Mahindra Champion DX
 Mahindra Champion
Business:
The main business of Mahindra & Mahindra Limited is to manufacture the utility
Vehicles and Light Commercial Vehicles and Tractor to market these Vehicles for customers.
The Mahindra Group is divided into 6 sectors and these are the strategic core business units.
♦ Automotive Sector
♦ Farm Equipment Sector
♦ Automotive Component Sector
♦ Trade and Finance Sector
♦ Infrastructure Development Sector
♦ Telecom Software Exports Sector
Location:
Automotive Sector:
It is nothing but the manufaturing and marketing of Light Commercial Vehicles and
Utility Vehicles. The Plants are located at the following places.

♦ Kandivili Plant is located at Mumbai.

♦ Nasik Plat is located in the State of Maharashtra,
♦ Ligature Plant is located in the State of Maharastra.
♦ Zaheerabad Plant is located at Zaheerabad, Andhra Pradesh.
 Mission:
At M &M, will design, manufacture and market Internationally Competitive, Automotive
Vehicles farm equipment and products.
Our customer’s needs – especially the requirement of safety, reliability value for
money and farm productivity will be our primary concern. In our Business operations are will
– ensure sustained profitability and growth we will create a dynamic collaborative in which
our people will feel challenged and cared or and build an organization that is re-silient flexible
and productive.
As an organization we will be recognized for high Ethical Standards and
responsiveness to the social environment we will continue to be.
• Objectives:
The main objective of Mahindra is that they want to maintain none to second
position. Best top company by maintaining talented people.
Customer Focussed:
People Culture:
• By Encouraging team work
• By providing a healthy and good work environment
• By Sake practices
• By appraisal and Reward System.
DISTRIVBUTION CHANNEL
Community Culture:
• By setting high ethical standards.

• By responsible to environmental needs.
• By to community welfare.
Time Discipline:
• By Meeting set targets

• By delivering on time
• By ensuring service on time
• By quick response to needs
Quality Discipline:
• By positive reputation for quality

• By following international quality assurance, systems and procedures.
• By delivering right time and every time.
Cost Discipline:
• By elimination of non-value added work.

• Through continues improvement.
• By productive use of assets.
 History:
Mr. J.C. Mahindra and Mr. K.C. Mahindra established the company in 1945 and
named as “ Mahindra & Mahindra Limited ”.
Mr. Mohammed name was included in the name of the company as Recognition of his
Enormours help for the establishment of the company. After the divergence of India and e
Pakistan Mr. Mohammed has become the First Finance Minister of Pakistan and the company
was incorporated in 1945.

The company renamed as “ Mahindra & Mahindra Limited “in 13 Jan, 1948. Upto
Jan 14, 1955 it was continued as private company which covered under the Companies Act,
1923. It has become public limited company on 15th Jan 1955 and the shares were listed in
BSE in 1956. It was initially formed to manufacture the utility vehicles to Indian People and it
was initially assembling and importing “ Willy Over Land Corporation “.
The Mahindra & Mahindra Limited has started manufacture of Utility Vehicles firstly
the “ Willis Jeep “ in 1954 and later in 1965 it has concentrated on manufacturing the
Light Commercial Vehicles by producing “Successor”. New Part of Diamler Chrysler
corporation. In year 1963 the International Tractor Company.
In 1969 Export of Vehicles started and the company started to export
the spare part to Yugoslavia. Exports also made to Ceylon, Singapore, Philippines and
Indonesia. In 1987 M & M 540 D P Metal Body Wagonette introduced. In 1993
Mahindra launched Armada and LCV Vehicles were shifted from Nasik to
Zaheerabad. In 1995 Cab King D I 3150 were introduced and classic vehicles were
launched. In 1997 Voyager was launched at Zaheerabad Plant. In 1998 complete
localization of Cab King Model at Zaheerabad Plant.

Unique Achievements:
1945:
On October 2, Mahindra & Mohammed formed.
1948:
The Company was renamed Mahindra & Mahindra Limited (M & M) Steel
Trading business was started in association with Suppliers in U K Business
connections in USA through Mahindra Wallace.
1950:
The first business with Mitsubishi Corporation (for 5000 Tons) for Wagon
building plates for supply from Yawata Iron & Steel.
1954:
Technical & Financial Collaboration with Willys Overland Corporatin.
1956:
Shares listed on the Bombay Stock Exchage Dr. Beek & Co. Formed a JV with
Dr. Beck & Co., Germany.
1958:
Machine Tools Division started.
1960:
Mahindra Sintered Products Ltd. Formed – a JV with the GKN’s Group, UK.
1963:
Iinternational Tractor Co. of India (ITCI) formed – a JV with International
Harvester Co., USA
1965:
Vickers sperry of India Ltd., a JV with Sperry Rand Corporation, USA Roplas
(India) a collaboration with Rubery Owen, UK Manufacture of Light Commercial
Vehicles commenced.
1970:
Mahindra Engineering & Chemical Products Ltd. (MECP) commenced
operation.
1971:
International Harvester Collaboration ended.
1977:
ITCI merges with M & M, to become its Tractor Division.
1979:
License from Automobile Peugeot, France for manufacture of XDP Engines.
1982:
License from KIA for manufacture of 4 Speed Transimissions “Mahindra”
Brand of Tractors born Siro Plast formed.
1983:
M & M becomes market leader in Indian Tractor Market.
1984:
Mahindra Hellenic Auto Industries S.A. formed – J V in Greece to assemble
and market utility vehicles in Europe.

1986:
Mahindra British Telecom (M B T) formed – a JV with British
Telecommunications plc (BT), UK.
1987:
Acquired international instruments Ltd.
1989:
Automotive Pressing Unit acquired from GKW.
1992:
Triton over Water Transport Agency Ltd. Formed.
1993:
Mahindra Steel Service Centre limited formed in association with Mitsubishi
Corporation and Nissho Iwai Corporation of Japan. Mahindra Acres Consulting
Engineers Ltd. (MACE) formed.
1994:
Mahindra Realty & Infrastructure Developers Limited. (MRIDL) formed
Mahindra USA Inc., formed, for distribution of Tractors in the USA EAC Graphics
(India) Ltd., formed in collaboration with The East Asiatc Company Ltd. Mahindra
Sona Ltd., Mahindra Nissan Allwyn Limited merged with the Company.
1995:
Mahindra Holding & Finance Ltd. ( M H F 1 ) becomes a subsidiary of M & M
to carry out business as an investment company technical collaboration with
Mitsubishi / Samcor to manufacture L300.
1999:
Launch of ‘Bijlee’ a battery – operated, 3 – Wheeler environmenta friendly
vehicle. The largest online used vehicle web site in India launched by Mahindra
Network Services. The business of Inter Trade Division and Mahindra Exports Ltd.m
Combined and renamed Mahindra Inter Trade Ltd. The Company acquired major stake
in Gujarat Tracors. Mahindra & Mahindra Financial Services Ltd. Becomes a
subsidiary of M & M.
2000:
The Company unveils new logo.
Mahindra Auto Specialties Ltd., a new 100% subsidiary is formed.
M & M sets up its first satellite tractor plant at Rudrapur.
The Company launches New Age Tractor, the Mahindra Arjun 605 DI.
The Company launches Bolero GLZ a utility Vehicle a response to needs of urban
Consumer.
2001:
A 3 – Wheeler diesel vehicle “ Champion “ is launched. The Company
Launches Mahindra MaXX a MUV positioned with the caption Maximum Space,
Maximum Comfort. M & M ties up with Renault for petrol engines. M& M
established a separate division to provide Defence Solutions.
2002:
M & M launch SCORPIO – A sprots utility vehicles.
2003:
Scorpio – Recipient of prestigious Awards – “car of he the year” award from
Business Standard Motoring, “Best SUV of the year” and “Best car of the Year”
Award from BBC on Wheels, “Car of the Year” Award from CNBC Auto Car.
M & M launch the “Invader” – a sporty open top vehicle.
M & M open a second tractor assembly plant USA.
M & M launches MaXX Pik Up.
M & M Tractors awarded the prestigious deming Prize for excellence in Quality.
The first tractor company in the world to receive the award.
M & M launches India’s first Turbo Tractor, Scorpio wins National Award for R & D.
M & M venture into Industrial Engine business.

 Functional Profile:
Organization Chart:
The Mahindra & Mahindra Limited is headed by General Manager (Operations)
Who is assisted by Deputy General Manager from Production Department, Quality
Assurance, Finance Department, PHRD Department, Supply Module Department, and
Ancillary Administration Department. The General Manager (operation) is also assisted
by Senior Managers from Service Department, Administrative Department, and
Vehicle Engineering Department and also assisted by manager from Product Control
Department. The Senior Manager Production and Senior Manager Maintenance assist
the Deputy General Manager Quality Assurance is assisted Senior Manager Quality
assurance and Senior Manager Pre Delivery Inspection.
The Deputy General Manager Finance Department is assisted by the senior
Manager Accounts, Senior Manager Finance and Senior Manager of Excise Cell. The
concerned Senior Manager assists the Deputy Manager of Ancillary Development
Department.
Departmentalization:
In “Mahindra & Mahindra Limited” the departmentalization is divided into:
1. Direct Departments.
2. Indirect Departments.
 Direct Departments:
The Department, which directly involves in the production process, comes under this
Category. The Core Departments are as follows:
♦ Production Planning and Control Department

♦ Vehicle Engineering Department (VED)
♦ Paint Shop.
Production Planning and Control Department:
The Core Function of this Department is target setting. This Department seeks
information from Mumbai regarding the requirements of vehicles depending on the targets for
which the company has to strive to achieve. To achieve the targets Mahindra & Mahindra at
ZHB get engines from Igathpuri Plant and spare parts from other plants.
The Chief Functions is: -
• Realize plans for model of the Vehicle, based on marketing.

• Control on the moving models.
• Total control and coordination with other departments.
• Coming up with contingency plans, in case of any problems.
Vehicles Engineering Department:
The Main objective of the Department is customer satisfaction Research and a design
activity of the organization depending on customer wants. Taking consideration as privations
and with of customer this Department designs required vehicles with the help of Corporate
R & D.
• Looks after the new products units it goes into production.

• Responsible for bringing out manual for different vehicles.
• Testing the vehicles for ascertaining its functioning.]
• Incharge / handles the technical library.
Paint Shop:
Paint shop is used to give a high technology paint to the body of the vehicles.
 Indirect Departments:
The Departments, which are not directly, involve in production process, and give more
assistance comes under this category. The Core Departments are as follows:
• Administrative Department.
• Finance Department.
• Personnel and HRD Department.
• Service Center
• Material Control Department of Ancillary Development Department.
• Industrial Engineering Department.
• Maintenance Stores Department.
Administrative Department:
Administrative Department is one of the important, which looks after various aspects
like house keeping, provision of transport facilities, maintenance of security, safety aspects and
maintenance exchanges.
Finance Department:
The Department looks after allocation of funds, costing and accounting of the financial
resources of the organization. A Part from these functions the Finance Department looks after
the Provident Fund Trust as the Treasurer, Capital Purchase, Taxation and final Accounts.
Personnel and HRD Department:
The Department looks after HRD activities they are
• Training for apprentices

• Internal and external training and development
DISTRIBUTION CHANNLE
• Induction programs
• House magazines and Mahindra news
• Suggestions schemes
• Sports and Games
• Quality circles
• Increment Policy
• Staff performance appraisal
The above HRD activities are conducted by Personnel Department. The quality circles
program conducted with the assistance of Production Department and Industrial Engineer. This
organization greatly concentrates on training aspects.
Service Center:
This center comes under the MARKETING Department it provides services to
customers to field officers and dealers. The various functions of this Department are as under:
• Provides service training to dealers and field officers.

• Feed back to various departments about the products.
• Warranty processing.
• Makes service trails.
• Technical sale and collaboration with foreign companies.
• Sales of manuals and operators instructions.
Material Control Department of Ancillary Development Department:
The ADD and MCD Departments are linked to one another the control focus of these
Department is too. Indigenous localizes the components of various parts used in the vehicles.
Industrial Engineering Department:
The IED is an important Department, which totally coordinates with all the other
Departments it is responsible of the manpower planning of each section and also arranges, the
tools needed for production of the vehicles in this Department they will self the production
targets and inform to all the Departments. They also draw the process sheets, charges from time
to time. The implement of TACT and MOST will be looked after through this Department.
Maintenance Stores Department:
In M & M Maintenance Department which take care of the maintenance of the various
machinery equipment assets and instruments the Department does the following functions.
• Up Keeping of the plant and machinery for high productivity.

• Spare part planning, stocking, inventory control of the maintenance stores.
• Break down maintenance.
• Periodical inspection of factory equipment’s and installations.
STRUCTURE OF MARKET
DEPARTMENT
STRUCTURE OF MARKETING Dept (SALES SUPPORT)
22
CHAPTER – IV
RESEARCH METHODOLOGY
RESEARCH METHODOLOHGY
DATA COLLECTION METHODS:
The information which has collected through the processes of
• Personal Interview
• Questionnaire
• Previous records (like Dealers data record of the company).
SOURCES OF DATA:
The data which was collected for the study is of the following two types,
those are
a. Primary Data:
The primary data is collected through survey method by administering a
Structured questionnaire.
b. Secondary data:
The secondary data is collected from the printed material provided by
the SPL and from journals and magazines.
SAMPLING METHOD:
Sample is picked from the total dealers by adoption Random Sampling Method.
SAMPLE SIZE:
The sample size is selected to 5. The total 5 Dealers were covered in some
selected cities.
DURATION OF STUDY:
The study was carried on for 45 days i.e., from April 25 to June 8, 2005
AREA OF STUDY:
The study is conducted in
 VARIETY AUTOMOTIVES
Nagole-Uppal Ring Road, Hyderabad – 39.
 BHAVANI MOTORS
Mumbai Highway (NH-9),
Beside Indian Oil Pump, Miyapur, Hyderabad – 500 049.
 AUTOMOTIVESECTOR
8571, R.P.Road, Secenderabad – 500 003.
 PAVITH AUTOMOBILE
Near R.T.O. Check Post. X Road.
ZAHEERABAD – 502 220.
 AVINISH & COMPANY

Nehru Gunj, Gulbarga.
DISTIVBUTION CHANNEL
LIMITATIONS:
It would be inappropriate to say that the survey conducted is perfect and
accurate. Infact like other surveys, it also faced some limitation due to which the
outcome may have certain deviations. These limitations were:
1. The area, which is the researcher, covered for the particular research will not be
suitable for entire marketing area of the product.
2. The conclusions drawn are subjected to the information provided by the various
dealers contacted.
3. The Dealers are very busy with business activities. Due to the limitation Dealers
may not be able to provide correct information.
4. The researcher cannot specify the data which has collected is purely right,
because some of the Dealers may not have given the actual information.
Inspire of all above limitations, a sincere attempt is made in this to assess the
significance of distribution of the Mahindra & Mahindra vehicles.

`
CHAPTER – V
A THEORATICAL APPROACH
DISTRIBUTION CHANNEL: (Def)
A set of interdependent organizations in the process of making a product or
service available for use or consumption by the consumer or business users.
The distribution channel transport & store goods & services from producers to
consumers.
Distribution channels can be described by the number of channel levels involved.
CHANNEL LEVEL:
A layer of intermediaries that performs some work in bringing the product and its
ownership closer to the final buyer is Channel level.
Because the producer and the final consumer both perform some work, they are
part of every channel.
We use the number of intermediary levels to indicate the length of a channel.
There are two types of marketing channel.
a). Direct Marketing channel
b). Indirect Marketing channel

a). A market channel that has intermediary levels is called “Direct marketing
channel”.
b). A market channel containing one or more intermediary level.
Below figure shows several consumer distribution channels of different lengths
CHANNEL 1.
Channel 1 Called a direct marketing channel, has no intermediary levels. It
consists of a company selling directly to consumers.
Ex: - AMVAY---etc; sell their product door to door or through home and office sales
parties. The remaining channels in figure are indirect market channels.
CHANNEL 2.
Channel 2 contains one intermediary level. In consumer market this level is
typically a retailer.
Ex: - The makers of televisions, cameras and many other products sell their goods
directly to large retailers. Such “Wal-Mart” and “Sears” which then sell the goods to final
consumers.
CHANNEL 3.
Channel 3 contains two intermediary levels, a wholesaler and a retailer. Small
manufacturer of food drugs, hard ware and other products often uses this channel.
CHANNEL 4.
Channel 4 contains three intermediary levels. In the meat packing industry.
For example, Jobbers buy form wholesalers and sell to smaller retailers who generally are
not served by larger wholesalers.
Figure 1:

A. CUSTOMER MARKETING CHANNEL
Figure 2: -
Consumer and business marketing channel
B. Business Marketing Channel
In the past many companies used a single channel to sell to a single market or
market segment.
To day with the proliferation of customer segments and channel possibilities,
more and more companies have adopted “Multi channel” distribution system often called
“Hybrid marketing channel”.
Multi Channel: (Def)

A distribution system in which a single firm sets up two or more marketing
channels to reach one or more customer segments is called “Multi Channel” distribution
system.
Functions and Distribution [Marketing] Channels perform: -
This channel performs many key functions. Some help complete transactions by
gathering and distributing information needed for planning and aiding exchange by
developing and spreading persuasive communication about an offer
by performing contact work  finding and communicating with prospective
buyers;
by matching  shaping and fitting the offer to the buyer’s needs and by entering
in to negotiation to reach and agreement on price and other terms of the offer so that
ownership can be transferred.
Other functions help to fulfill the completed transaction by offering “Physical
Distribution” transporting and storing goods.
Financing  acquiring and using funds to cover the costs of the channel work.
Risk taking  assuming the risks of carrying out the channel work.
 DEALERS PERCEPTION: -
Dealer Selection:
Marketing take great care in the selection and appointment of dealers granting
franchise to under serving dealers will be detrimental to the business interests or the firm.
The firm should take for a number of essential qualities and qualification in their
prospective dealer. Some of these qualifications are irrespective of products lines and
such alitiesare financial strength, credit worthiness, salesmanship, experience and reties,
business capacity; etc. in practice, the firm may some times find it difficult to locate
dealers possessing all the desired qualifications and attributes. Out of the available
candidates dealers should be selected care fully. In the case of specialty.
Products, selections of dealers require elaborate efforts.
Qualities to be looked for while selecting dealers:
• Credit worthiness
• Financial soundness & willingness to invest in line
• Previous experience in the field
• Business reputation
• Business capacity & salesmanship
• Willingness to provide credit
Capacity to offer:
• Required assortments of product
• Required service
Capacity to provide: -
Good relation with:
• Concerned government officials, sub – dealers if any, consumers,
Banks and other financial institutions.
• Storage facilitates, Show rooms, Shops, Service Workshops, Sales and
serviceman, consummate with expected business.
• Social status.
Positive attitude towards the company on the part of the dealer and his key personnel.
Dealer motivation: -
To be effective the dealers have to the constantly motivated. The firm should
constantly strive the needs of the dealers. It is applied said that a wise firm gets a good
band of dealers settle down with firm. Dealer’s motivational elements are as follows.
1. Harmonious dealer’s motivation is very important in dealer motivation.
2. Ensuring good store image and deriving promotion advantage though the store
image.
3. An attractive trade margins is not doubt. The primes factor in dealer motivation.
4. Ensuring dealers support in merchandising is another important aspect of dealer’s
management and dealer’s motivation.
5. Prompt delivery, efficient service and incentives.
Managing the dealer network:
The designing of the channel and the creation of the channel are not everyday
tasks in channel management. It is the administration of the dealer’s network that
constitutes every day tasks channel management. In the broadest sense, managing the
dealer network will include the dealer servicing, dealer administrating, co – dealer
compensation, dealer motivation and dealer development.
Performance appraisal of individual dealers: -
Periodical evaluation of the performance of the dealers is yet another important
Aspect of channel management. The performance appraisal must be done with a view to
identifying the specific strengths and weakness of the dealers. If the performance is
below the desire level, remedial action must be taken promptly
Criteria for dealer appraisal: -

 Market awareness
 Sales point facilities
 Public relation
 Storage space provided
 Inventory handling support
 Market intelligence
 Efficient of service provided to customers
 Sales intensity
 Enrollment of new accounts
 Promotional support
 Submission of reports
 Timely payment of bills
 Maintaining of business records
The appraisal of dealer’s performance should lead an important in their
performance in addition to proper performance appraisal of individual dealers,
periodic review of the dealer network as a whole and removal of weakness in the
network must also be take – up. Hence, we can say that dealer’s job is a
continuous job.
M.B.A, Osmania University 34.
Dealer – principal relation: -
The relations between a firm and a dealer revolve largely around the following
factors.
1. Services or functions to be performed by the dealer.
2. Territory of operation.
3. Services or functions to be performed by the principal.
4. Remuneration to the dealer.
The firm normally expects a dealer to establish the product in the market,
maintain fair trade practices, and provide serviced to consumers and help in promoting
the products. The dealer in turn expects the firm to delivery a quality product, make
adequate and reasonable profits for the Delaware in the price structure and render good
sales promotion support.
Dealer induction: -
Proper induction of the dealer in to the organization is another important part of
dealer management. Many firms view dealers as synonymous with dealer training. While
induction does include a training component, it needs to be handled as a distinct function.
It should lead to the smooth assimilation of the dealers in to the organization.
About area offices and their addresses, and Dealers address and distance
from ZAHEERABAD.
NORTH ZONE: -
AREA OFFICE CHANDIGARH NEW DELHI/ JAIPUR LUCKNOW
KARNAL
ADDRESS Sco33,sector Mahindra Tower 408,4th floor, Mahinra Towers,
26G,Madhya 2A, BIKAJI GANAPATHI gopal Tirath plaza,
Marg,chandigarh CAMAPLACE, PLAZA,MI Road Auto Sector,Opp-
160 026 NewDelhi/ Jaipur – 302 006 HALL, Fizabad
Road,Lucknow,22
sco-15,sector 6 016
8,Main
market,karnal-
132 001
Distance from Km km Km Km
ZAHEERABAD
By Own power 1950 1609/2000 1730 1494

2010/2060 1730 1627
By Carrier/Trucks 2100
24 Dealers attached to the CHANDIGARH area office in those 8 main dealers
(MD), 5 mahindra authorized dealer branch (MADB), 5 mahindra authorized service
center (MASC), and 5 stockiest.
31 Dealers attached to the NEW DELHI/KARNAL area office in that 10 main
dealers (MD), 1 mahindra authorized dealer branch (MADB), 7 mahindra authorized
service center (MASC), 7 stockiest.
36 Dealers attached to the JAIPUR area office in those 10 main dealers (MD), 8
mahindra authorized dealer branch (MADB), 12 mahindra authorized service center
(MASC), and 2 stockiest.
39 Dealers attached to the LUCKNOW area office in those 34 main dealers (MD),
0 mahindra authorized dealer branch (MADB), 0 mahindra authorized service center
(MASC), and 2 stockiest. Totally 129 dealers attached to the north zone.
EAST ZONE: -
AREA OFFICE CALCUTTA GUWAHATI PATNA

ADDRESS 7,KYD Street, 3rd 1st floor, consultancy 3rd floor,J-J complex,
floor, kolkatta-700 house, mani ram East Boarding, conal
deven road, bamuni road, patna – 800

016.
maidan. 001.
Distance from Km Km Km
ZAHEERABAD
By own power 1765 2956 1632
By trucks/carrier 1767 3300 1632
16 Dealers attached to the CULCUTTA area office in those 5 main dealers (MD),
14 Dealers attached to the GUWAHATI area office in that 7 main dealers (MD),
(MASC), 2 stockiest.
10 Dealers attached to the PATNA area office in those 10 main dealers (MD), 0
3 Dealers attached to the AGARTALA area office in those 2 main dealers (MD),
21 Dealers attached to the BHUBANESHWAR area office in those 5 main
dealers (MD), 8 mahindra authorized dealer branch (MADB), 4 mahindra authorized
service center (MASC), and 3 stockiest. Totally 64 dealers attached to the east zone.
WEST ZONE: -
AREA MUMBAI/ PUNE NAGPUR BHOPAL AHMEDAB
OFFICE GOA AD
nd
ADDRESS Mahindra 6, Jagatap A1- 2 floor, APG
Towers, marg, indrasagar, quality bungalow
ground floor, ambedkar ravindranath business no.12,
worli road tagore road, center, plot N.C.marg,sha
road,pune-
no. 13, civil lines, no: 7, zone II, hibaug,
411 001
mumbai- nagpur-440 M.P. nagar, ahmedabad-
4000 018 001. commer 380 004
complex,
Bhopal.
Distance Km Km Km Km Km
from
Zaheerabad
By own
Goa-730 1025 1150
power
By
Goa-730 1025 1150
trucks/carrier
16 Dealers attached to the MUMBAI/GOA area office in that 8 main dealers
center (MASC), 5 stockiest.

21 Dealers attached to the PUNE area office in those 12 main dealers (MD), 4
10 Dealers attached to the NAGPUR area office in those 7 main dealers (MD), 0
mahindra authorized dealer branch (MADB), and 0 mahindra authorized service center
27 Dealers attached to the BHOPAL area office in those 3 main dealers (MD), 6
17 Dealers attached to the AHMADABAD area office in that 12 main dealers
center (MASC), 1 stockiest.
14 Dealers attached to the COHIN area office in that 1 main dealer (MD), 8
(MASC), and 2 stockiest.Totally 105 dealers attached to the west zone.

SOUTH ZONE: -
Area office BANGOLORE CHENNAI HYDERABAD

Address APH, Raheja APG,Bharat Mahindra house,
chamber, 1st floor, Insurance TSR complex,1-7-
husum road, Buld,129,annasalai, 1,Park
bangalore-560 001. chennai-600 002 lane,secenderabad-3
Distance from Km Km Km
ZAHEERABAD
By own power 750 825 120
By trucks/carrier 850 900 ---
15 Dealers attached to the BANGALORE area office in those 8 main dealers
18 Dealers attached to the CHENNAI area office in that 15 main dealers (MD), 2
19 Dealers attached to the HYDERABAD area office in those 7 main dealers

M.B.A,Osmania University. 41
CHAPTER - VI
DATA ANALYSIS
1Q. Since how long you are taken dealer ship of M & M vehicles?
RESPONSE PERCENTAGE
a) Before 1 year 10%
b) Before 2 years 0%
c) Before 3 years 20%
70%
LINE CHART
PIE CHART
80%
60% a)PERCENTAG
Before 1 year
40%
20% E
0% b) Before 2 years
a) b) c) d)
Before Before Before More c) Before 3 years
1 year 2 years 3 years than 3
years d) More than 3
years
d) More than 3 years
Most of the Dealers taken their Dealer ship more than 3 years.
20 % Dealers taken their Dealer ship before 3 years.
And 10 % Dealers taken their Dealer ship before 1 year.
42
2Q. What is the present position of M & M in the market?
RESPONSE PERCENTAGE
a) Excellent 95%
b) Good 5%
c) Average 0%
0%
C O L U M N C H AR T
10 0% BAR CHART
8 0%
6 0% d) Poor
P E RC E NTA GE
4c)0%
Average
Series2
2 0%b) Good
Series1
a)0%
Excellent
RESPONSE a) b) Goo d c) A verag e d) P oo r

E xcellent
0 0.2 0.4 0.6 0.8 1
Most of the Dealers said that present position of M & M company is Excellent.
Remaining 5 % of the Dealers said present position of M & M Company is good.
43
3Q. Will you get the vehicles from the “ R.S.O” intime?
RESPONSE PERCENTAGE
a) Yes 90%
10%
PIE CHART
a) Yes
b) N o
b) No
Most of the Dealers said that they would get the vehicle from R.S.O intime.
10 % of the Dealers said no.
44
4Q. Will Company people assist you in advertisements?
RESPONSE PERCENTAGE
a) Yes 90%
LINE CHART
1
0.8
0.6 Series1
0.4 Series2
0.2
0
RESPONSE a) Yes b) No
b) No 10%
RADAR CHART
RESPONSE
1
Series1
0
b) No a) Yes Series2
Most of the Dealers said that company people assist them in advertisement.
10 % of the Dealers said that no.
45
5Q. What is your expectation of sales target?
LINE CHART
1
0.8
0.6 Series1
0.4 Series2
0.2
0
RESPONSE PERCENTAGE
a) Reach the goal 100%
b) Other factor 0%
LINE CHART
120%
100%
80% PERCENTAG
60%
40% E
20%
0%
a) Reach the b) Other factor
goal
All of the Dealers said that their expectation sales target is Reach the goal.
46
6Q. Are you satisfied with the margins given by the company?
RESPONSE PERCENTAGE
PIE CHART
RESPONSE
a) Reach the goal
b) Other factor
a) Yes 100%
b) No 0%
RADAR CHART
RESPONSE
1
Series1
0
b) No a) Yes Series2
All the Dealers said that they satisfied with the margins given by the company.
47
7Q. Are you conducting any survey regarding customer satisfaction?
COLUMN CHART
1.2
1
0.8 Series1
0.6
0.4 Series2
0.2
0
RESPONSE PERCENTAGE
a) Yes 90%
b) No 10%
COLUMN CHART
1
0.8
0.6 Series1
0.4 Series2
0.2
0
Most of the Dealers said that they are conducting survey regarding customer satisfaction.
Remaining 10 % of the Dealers said that they have no time.
48
PIE CHART
RESPONSE
a) Yes
b) No
CHAPTER – VII
CONCLUSION & SUGGESTIONS
CONCLUSION
The Project has been taken – up to find out the what are the problems faced by the
Dealers and what is the present company position in Twin Cities (Hyd, Sec), Zaheerabad
and Gulbarga and what are the other suggestions to the company to increase the sales. I
did the survey with the sample of 5 Dealer points in the given cities.
• Actually in the market Mahindra & Mahindra have very good name.
• In a survey I can conclude that the transportation (Dispatching) of the
vehicles of M & M Company is very good.
• Dealers are showing their good response.
• Most of the Dealers opinion is that the company advertisement is not good
in Cities. They are telling that the management is not showing interest to
increase the advertisement.
• Maximum number of dealers are satisfied with the services of the
company.
49
SUGGESTIONS
After Through analysis of the findings researcher offers following suggestion to
the Management of the Mahindra & Mahindra for their improvement.
• The most of the dealer’s suggestion is the management has to maintain to
their increase the company sales.
• Maximum numbers of Dealers are satisfied with the transportation. But
some are not satisfied. Because they are telling that the management is doing
some delay in transportation. Dealer’s suggestion is to avoid the time delay.
• And most of the Dealer’s suggestion is to conduct the Dealers at least once
in a month.
• Some of the Dealers telling that in the Regional Sale office (R.S.O)
[AREA OFFICE] is no good response. So my suggestion is the management
have to concentrate on the Area Office, which is in city.
• My best suggestion is that the management has to increase the
advertisement of their vehicles. They have to concentrate on advertisement
very much.
50
APPENDIX
QUESTIONNAIRE ON DISTRIBUTION CHANNEL
Dealer perception in terms of “DISTRIBUTION CHANNEL”.
Dealer point:
1Q. Since how long you are taken dealer ship of M & M vehicles?
a) Before one year b) Before 2 years
c) Before 3 years d) More than 3 years
2Q. What is the present position of M & M in the market?

a) Excellent b) Good
c) Average d) Poor
3Q. What is the reason to sell exclusively for M & M vehicles only?
4Q. Will you get the vehicles from the “RSO” in time?
• Yes { }
• No { }
5Q. How many types of vehicles maintaining in your dealer shop?
6Q. At present which one is the highest selling vehicle? What is the reason?
7Q. Who are your competitors?
51
8Q. What is the equal range of competitors of your vehicles?
M & M vehicles Competitor vehicles
9Q. Will Company people assist you in advertisements?

• Yes { }
• No { }
10Q. Are you satisfied with the margins given by the company?
• Yes { }
• No { }
11Q. Will you tie up with any banks for giving vehicle loans to the customers and why?
Do you choose that particular bank?
• Yes { }
• No { }
12Q. How do you provide the service to make the customer satisfaction?
13Q. Are you conduction any survey regarding customer satisfaction?

• Yes{ }
• No { }
14Q. Have you observed any increasing sales on particular vehicle & why?
What is the reason?
52
15Q. The company gives what is your actual target to selling the vehicles that?
16Q. What is your expectation of sales target?

a) Reach the goal
b) Other factor
17Q. How do you promote the vehicles?
18Q. What is your sales Index & Sales growth?
19Q. What is the perception towards M & M vehicles?
20Q. On which factor emphasize for which vehicle?
53
BIBLIOGRAPHY
 BOOKS
TITLE AUTHOR
1) Marketing Management  PHILIP KOTLER

McGraw – HILL EDITION
2) Principles of Management  KOONTZ

McGraw – HILL EDITION
 BASIC MATERIALS
1. Profile of Mahindra and Mahindra Ltd.

2. Product Profile of Mahindra and Mahindra Ltd.
 WEB SITE ADDREESS

• www.indiainfoline.com
• www.automartindia.com
• www.automotive.mahindraworld.com
54

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A STUDY ON DISTRIBUTION CHANNEL

IN MAHINDRA & MAHINDRA LIMITED

Dissertation report submitted to the OSMANIA UNIVERSITY. Hyderabad in partial

MASTER OF BUSINESS ADMINISTRATION

I declare that this dissertation report entitled “DISTRIBUTION CHANNEL”

I am very much thankful to MR.SANJAY LAL, principal of HOLYMOTHER

I express my sincere thanks to our marketing lecturer MR.NAGA RAJU, under

I am indebted to Mr.K.P.N Rao, DGM – HR & IR. Mahindra & Mahindra

STRUCTURE OF MARKETING DEPARTMENT 22

7. CONCLUSION & SUGGESTIONS

The survey is conducted in favor of MAHINDRA & MAHINDRA Ltd.

The survey was done with the following objectives.

M.B.A, Osmania University 1

 AUTOMOTIVE MANUFACTURE LTD

 AVINISH & COMPANY

M.B.A, Osmania University 2

(A N L) to capable of business houses, in this case preferably and established automobile

M.B.A, Osmania University. 3

leading manufacturing of Jeeps and Tractors entered into a Memorandum of Understanding

some of the important products are

• Mahindra FJ 470 DS4 High Roof Minibus.

The Automobile Sector is one of the fastest growing manufacturing sectors in

Indian Automobile Industry is characterizzzed by a very high 21% (75%) of two

establishing Manufacturing facilities for manufacturing and assembling components.

support of Seaports, International Airports, assured and reliable power supply,

M/s. Ford, Mercedes, Benz, Daewoo, Fiat, Honda, Hyundai, Suzuki,

production in value terms are exported all over the world.

Company Product Details:

 Mahindra Commander 650 DI

Hard Top Range:

M.B.A, Osmania University 7

Alternative Fuel Range:

 Mahindra CNG – Three Door

 Mahindra Rakshak (Bullet – Proof Vehicle)

Three Wheeler Range:

Utility Vehicles. The Plants are located at the following places.

♦ Kandivili Plant is located at Mumbai.

At M &M, will design, manufacture and market Internationally Competitive, Automotive

Vehicles farm equipment and products.

As an organization we will be recognized for high Ethical Standards and

responsiveness to the social environment we will continue to be.

position. Best top company by maintaining talented people.

• By setting high ethical standards.

• By Meeting set targets

• By positive reputation for quality

• By elimination of non-value added work.

named as “ Mahindra & Mahindra Limited ”.

was incorporated in 1945.

M.B.A, Osmania University 10

was initially assembling and importing “ Willy Over Land Corporation “.

Light Commercial Vehicles by producing “Successor”. New Part of Diamler Chrysler

corporation. In year 1963 the International Tractor Company.

In 1969 Export of Vehicles started and the company started to export

Indonesia. In 1987 M & M 540 D P Metal Body Wagonette introduced. In 1993

launched. In 1997 Voyager was launched at Zaheerabad Plant. In 1998 complete

localization of Cab King Model at Zaheerabad Plant.

Trading business was started in association with Suppliers in U K Business

connections in USA through Mahindra Wallace.

building plates for supply from Yawata Iron & Steel.

Dr. Beck & Co., Germany.

Harvester Co., USA

(India) a collaboration with Rubery Owen, UK Manufacture of Light Commercial

International Harvester Collaboration ended.