The Automobile Industry

Distribution Channel

Presented by:
Shahnoor Khan 20
Tabassum N. 34
Submitted to : Talhah Patel 40

Prof. RAJESH VYAS Abdul K. Shaikh

 DISTRIBUTION

Distribution is the process of delivering the products manufactured or

service provided by a firm to the end user. Various intermediaries are
involved in this process.

DISTRIBUTION CHANNEL

This chain of intermediaries which helps in transferring the product

from one intermediary to the next before it reaches the end user is called
the Distribution Chain or Distribution Channel.
 FUNCTIONS OF DISTRIBUTION CHANNEL

· Bridge the gap between production and consumption.

· Promoting the product.
· Creating contacts or prospective buyers and maintaining liaison with existing ones.
· Understanding the customer's needs and adjusting the offer accordingly.
· Negotiate price and other offers related to the product as per the customer demand.
· Storage and distribution of goods
· Catering to the financial requirements for the smooth working of the distribution
chain.
· Risk taking for example by stock holding
 Channel Levels:
 Length of a channel: No. of intermediaries b/n producer & final consumer
 Zero Level:
Manufacturer Consumers
 Eg: Eureka Forbes, Reader’s Digest
 One Level:
 Manufacturer Retailer Consumer
 Eg: Maruti Suzuki dealers
 Two Level:
 Manufacturer Wholesaler Retailer Consumer
 Eg: FMCG, White goods
 Three Level:
 Manufacturer Dist. Wholesaler Retailer Consumer.
 Eg: FMCG, White goods
 The Indian Automobile Industry

Indian automobile industry crossed a historic landmark: 10 million

vehicles in 2006-07
The Indian auto industry has the potential to emerge as one of the
largest in the world. Presently, India is
• Second largest two wheeler market in the world
• Fourth largest commercial vehicle market in the world
• 11th largest passenger car in the world and is expected to be the
seventh largest market by 2016
The automobile industry in India — the ninth largest in the world
with an annual production of over 2.3 million units in 2008 — is
expected to become one of the major global automotive industries
in the coming years.
With the latest available data Indian Automobile Industry is
expected to grow at 9%-10% in near future.
It is assumed that in coming festive season to meet demand,
carmakers going to produce 70000units/month more over the
average 1.3lac/month with help of 5000 new hands.

(Source: Economic Times)

 Authorized
Manufacturers Customers
Dealers

Distribution Channel for Automobiles (Maruti Suzuki)

Major Lubricants manufacturers in India include;
• Castrol India Ltd.
• Mobil
• Bharat Petroleum Corporation (PSU)
• Indian Oil Corporation (PSU)
• Hindustan Petroleum Corporation (PSU)
 Channel for Auto Lubricants

C&F

Petrol pumps

Stockist

Exclusive dealer Multi brand dealer

Work shops Retailer

Customer
Channel for MRF Tyres
 N K
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