A Study on Distribution Channel of Aachi Products at Aachi Group

Abstract

A distribution channel is a chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. It can include wholesalers, retailers, and distributors. Channels are broken into direct and indirect forms, with a "direct" channel allowing the consumer to buy the good from the manufacturer, and an "indirect" channel allowing the consumer to buy the good from a wholesaler or retailer. It is the path by which all goods and services must travel to arrive at the intended retailer or customer. Conversely, it is also used to describe the pathway that payments make from the end retailers to the original vendor. It can be short or long, and depend of intermediaries required to deliver a product or service. However, goods and services are sometimes passed to retailers through multiple channels, a combination of short and long. While increasing the number of ways in which a retailers can find a good can increase sales, it can also create a complex system that sometimes makes distribution management is difficult. While a distribution channel can sometimes seem endless, there are three main types of channels, all of which include a combination of a producer, wholesaler, retailer and end consumer.

The first channel is the longest in that it includes all four, from producer to the end consumer. The masala industry is a perfect example of this long distribution channel. In this industry, cannot sell directly to a retailer. It operates in what is known as the three-tier system, law to first sell its product to a wholesaler, who then sells to a retailer. The retailer, in turn, sells the product to the end consumer. The second channel is one where the producer sells directly to a retailer, who then sells the producer's product to the end consumer. This means the second channel contains only one intermediary. The third and final channel is a direct to consumer model where the producer sells its product directly to the end consumer. This paper discusses the current distribution channel followed by Aachi group pvt. ltd, to analyze the level of satisfaction toward Aachi products, to analyze the factor influencing the purchase of Aachi products and to know the importance of distribution strategy in the positioning of Aachi products.