Literature Review

Tomomichi Mizuno(2008) founded that sometimes products are sold directly to consumers through different ways like catalogues,internet or on their own factory outlets or shops.when goods are sold to customers directly it is called direct marketing.Their paper studies about the manufacturers choice wether they would like to sell directly to customers even in presence of rival manufacturers..Direct marketing can be prevented due to comperition in wholesale market. AKIO TORII and TATSUHIKO NARIU(N.D) studied that to capitalize on private information wholesalers enter distribution market. The distribution channels become long only if such private information is valuable.In this article they studied the relationship between wholesale private information and length of marketing channels. Matanda, M. J. and Schroder, B. compared the buter and seller relational dimensions for three categories supplier,small primary producers , large primary producers and wholesalers.The results showed significant difference. Dobbins, M.W., Tauber Oil Co.(1989) studied that wholesale marketing of elegant petroleum products by congregational marketing companies.Different roles which independent marketers and traders play in todays restructed refining environment.Sidney R.jumper(2005) studied the wholesale marketing structure for fresh vegetables includes linkages between groups of producer oriented,customer oriented, and redistribution markets. Enefiok P. Ekanem, Surendra P. Singh,Fisseha Tegegne, and Safdar Muhammad(2000) studied that in advertising nursery which channels are used they are very important to growers. In the selection of channels the difference between wholesalers and retailers should be shown. Reason for attending and exhibiting at trade shows is the scale of making difference between retailers and wholesalers. Mark Grassel and Raymond J. Folwell(2004) founded that the production of table wines in Washington began in 1960s. The annual growth rate in Washington wine sales has been increasing, while total wine sales in the U.S. have been declining. Despite this growth the potential supply of wine grapes exceeds the current sales levels. John M. Marsh and Gary W. Brester(2004) studied that the slaughter cattel prices are fallen down for quite some time. Some people say that variety of factors other than demand and supply are responsible for decline in the

prices. if packer concentration has reduced cattle and hog prices, the effects have been relatively small. C. L. Lorenzen, A. M. Martin, D. B. Griffin, T. R. Dockerty, J. P. Walter, H. K. Johnson, and J. W. Savell (1997) studied that Lamb is sold to the consumer principally as bone-in retail cuts with limited external fat cover. Wholesale lamb can be purchased as a whole carcass or vacuum-packaged and boxed as a three-piece carcass or as subprimal cuts. Although yields of lamb subprimals have been investigated, little information exists for different retail merchandising fabrication styles. Stephan Tubene and James Hanson(2002) studied that to achieve a target of more strengthened agriculture alternative marketing strategies are needed for small farmers.small farmers try their best to update their technologies due to affects. wholesale produce auctions goal was to serve their local communities by providing high-quality produce to local consumers and marketing opportunities for local farmers..

References

Ekanem, E. P., Singh, S. P., Tegegne, F., & Muhammad, S. (2000). Marketing Channels Used by Wholesale and Retail Nursery Companies. Journal of Agribusiness , 345-359. Marsh, J. M., & Brester, G. W. (2004). Wholesale-Retail Marketing Margin Behavior in the Beef and Pork Industries. Journal of Agricultural and Resource Economics, 45-64. Lorenzen, C. L., Martin, A. M., Griffin, D. B., Dockerty, R. T., Walter, J. P., Johnson, H. K., et al. (1997). Influence of Wholesale Lamb Marketing Options and Merchandising Styles on Retail Yield and Fabrication Time. Journal of animal and sciences, 1-6.

MANUFACTURER

SOLE AGENT

WHOLESALER

RETAILER

CONSUMER

RETAILER

RETAILER

CONSUMER

CONSUMER

CONSUMER R

2. Locally manufactured goods like ordinary household essentials which are stocked by small retailers are often distributed in this way since the retailers buy in too small a quantity to make it viable for the manufacturer to sell direct to them. 3. This method of distribution is especially important where the demand for the product is seasonal but production takes place throughout the year, e.g. fireworks and Christmas cards. It is the same if the demand for the product is fairly even throughout the year, but output is concentrated during specific periods of the year,e.g. paddy. In such cases, the wholesaler's function of acting like a reservoir in order to balance demand and supply becomes very important. 4. Goods which are sold in this way become more expensive because of the cost of distribution and profit margins required by the wholesaler and retailer.Moreover, consumers have no direct contact with manufacturers or producers.However, consumers are assured of a wide variety of goods produced by many producers. 5. The producer is free to devote all his attention and resources to the actual work of producing the goods since the marketing aspect of his goods is already in the hands of the wholesaler. At the same time, the producer is assured that his good sare marketed over a wide geographical area.

6. The retailer needs little capital as he needs to maintain only a small stock. He does not need to keep large stocks because it is easy for him to get new and,hence, fresher stocks from his supplier (wholesaler) once his stocks are depleted. 7. General wholesalers normally stock a wide range of goods and need a substantial amount of capital to finance their large warehouses, stocks and advertising and to pay the salaries of their salesmen. These tend to operate on a national or regional basis. Specialist wholesalers, however, deal mainly in a particular trade in a particular area, for example, a wholesaler of building materials, in fruit, in vegetables, etc. 8. Sometimes, a wholesale merchant may import directly from an overseas supplier. Like the wholesaler, he then sells it to the retailers in smaller quantities.

When an overseas manufacturer appoints a sole agent 1. This is done in the home market to manage the sale and distribution of goods as well as to provide after-sale services. The sole agent is responsible for getting reliable retailers to market the goods throughout the country. Such sole agents are appointed to sell imported cars, cosmetics and electrical goods.

Types of whole seller:

The whole seller are divided into 3 major categories. 1)

Merchant whole seller:

Independently owned business that take the title to the merchandise they handle. In different trade they are called jobber, distributors or mill supply house. They include full- service wholesaler and limited- service whole seller. 2)

Full- service whole seller:

Provide a full of service carrying stock, maintain a sale force offering credit, making deliveries and providing management assistance. It is also divided into 2 types.

Whole sale merchant:

Provide a full line of service carrying stock, maintaining sales force. Sell primary to retailer and provide a full range of service. General merchandise whole seller carry several merchandise lines, where as general line whole sellers carry one or two lines in great depth specially whole seller specialized in carrying only part of a line.

Industrial distributors:
They sell product or services to manufacturer rather than retailer provide several services such as carrying stock offering credit and providing delivery. May carry a broad range of merchandise a general line or a specialty line. 3)

Limited- service whole seller:

Offering fewer services than full service whole seller. These are of different

types.

Cash and carry whole seller:

Carry a limited line of fast moving good and sell to small retailer for cash. Normally do not deliver.

Truck whole seller:

Perform primarily a selling and a delivery function. Carry limited line of semi perishable goods which they sell for cash as they make their sounds to supermarkets, small groceries, hospital etc..

Broker and Agents:

Do not take title to good. Main function is to facilitate buying and selling for which they earn a commission on the selling price

Broker:
Chief function is bringing buyer and seller together and assisting in negotiation they are paid by the party who hired them and do not carry inventory.

Agents:

Represent either buyer or seller on a more permanent basis than brokers do. There are several type of agents. Manufactures agent. Selling agent. Purchasing agent. Commission agent.

HOW THE WHOLESALER SERVES THE MANUFACTURER, THE RETAILER AND THE CONSUMER
By carrying out the above functions, the wholesaler not only helps the manufacturer or primary producer, but also the retailer and the consumer as well.

Services to the manufacturer Low storage expenses

1. The wholesaler absorbs the goods produced by the manufacturer as they are being made. The manufacturer is, therefore, relieved from paying the expenses of storage -that is, rent, insurance, wages, utilities as well as the loss of interest due to money capital tied up in stocks. 2. The manufacturer of goods in seasonal demand such as winter clothing,greeting cards for various festivals, etc. is able to continue production through out the year as the wholesalers are willing to absorb the products when they are being produced. No manufacturer can survive if his factory is forced to close down for a few months in a year for there are costs to be met even if there is no production. These costs include depreciation on plant and equipment, interest on loans and wages of administrative staff.

3. All goods are produced before there are orders for them from the retailers. The manufacturer is relieved of the risk of loss should the anticipated demand for these goods from consumers fail to materialize. It is the wholesaler who has bought the goods in bulk who will have to bear the risk of loss.

Reduced cash flow problems

1. By paying the manufacturer promptly, the wholesaler reduces the amount of working capital required by the manufacturer and allows the latter to continue production smoothly. The manufacturer will, therefore, have a regular inflow of cash after selling off each batch of production. This reduces the amount he has to borrow.

Low marketing cost

1. Should the manufacturer undertake to market the goods himself {he will incur a lot of expenses for transport, advertising as well as administration since it is conceivable that some of the smaller retailers would prefer credit. 2. However, if he were to sell through the wholesalers, he would deal with only a few major customers who buy in bulk and who can pay him cash fairly promptly.This would reduce his marketing costs.

Ware housing:
Production and consumption cycles rarely match. So most companies store their tangible goods while they wait to be sold. A company must decide on how many and what type of ware houses it needs and where they will be located. The company may use either storage ware houses or distribution centers

Distribution centers:
A large highly automated warehouse designed to receive good from various plants and suppliers take order, fill them efficiently and deliver goods to customer as quickly as possible.

Inventory management:

Manager must maintain the delicate balance b/w carrying too little inventory and carrying too much many companies have greatly reduced their inventories and related cost through just-in-time logistic system. Our warehouses are well equipped and Process in the following steps: Pick and Pack Dispatch. Storage. Returns Handling.

Pick and pack dispatch:

Our Warehouse systems integrate with customer management software. Once an order is placed and approved it begins a smooth journey from our warehouse to customer. All delivery notes are personalised to include our logo and company details which helps us to maintain our company image and raise brand awareness with our customers. Details of despatch can be emailed to a designated address or sent by Post direct to our customer if required. To provide the most cost effective method of despatch we are linked in to DHL, and TCS services and in case of big orders we will deliver the goods through our warehouse on our own company logo mini vans.

Storage:
We have a modern secure warehouse with monitored alarms and CCTV for our peace of mind. From a box to a container, from shelving to racking, fireproof storage to pallets for bulk store. Flexibility is the key to our approach and whether we need long term or short term storage, lots of space or a just a little our warehouse can cater our unique business profile. All the goods received are checked, counted and put away. This makes the inventory control and invoicing easier and more accurate.

Returns handling:
Returns are a crucial element in customer service. Whether the goods are returned for replacement, repair or refund if the situation is handled quickly and efficiently it can only benefit our image and standing with our customer. Marketing Logistics will handle the returns process with the minimum amount of administration and fuss for us and the customer. By using a bespoke returns note we can quickly determine if the goods can be returned to stock for resale or re supply or if they need to be disposed of.

Everyone remembers poor service, our whole philosophy is one of great customer service. The power of word of mouth marketing should only ever be used for the benefit of our business.

Transportation:
Transportation and delivery performance also affect the customer satisfaction. There we will discuss 5 ways of transportation.

Truck:
Trucks have increased their share of transportation steadily and now account for nearly 35 percent of total cargo ton miles.

Rail road:
Rail road account for 31 percent of total cargo ton miles moved. They are one of the most cost effective modes for shipping large amounts of bulk product like coal, sand, mineral, oil, etc.

Pipe lines:
Which also account for about 16 percent of cargo- ton miles are a specialized mean of shipping petroleum natural gas and chemicals from source to market.

Water carriers:
Which account for about 11% of cargo tome- miles transport large amount of goods by ship and barges on U.S

Internet carriers:
Digital products from producer to customer via satellite, cable, modem or telephone wire.

Services to the retailer

Purchase of small quantities 1. A wholesaler's willingness to sell in small quantities is a boon to a small retailerwho only places small orders and is unable to get his stock directly from themanufacturer as the latter only sells in bulk. Transporting orders of smallquantities all over the country would be costly for the manufacturer. Reduced cash flow problems 1. Wholesaler provides credit to a retailer and reduces the latter's capitalrequirements. A producer is often not willing to grant credit to a retailer since itwould increase his working capital. 2. As a result, the retailers have time to sell the goods before they have to pay for them. Low goods preparation cost 1. A wholesaler simplifies a retailer's work since the goods are already graded and repacked into convenient quantities and sizes. Low storage expenses 1. A retailer is always assured of delivery of fresh stocks from the wholesaler's warehouse if he runs short. This reduces the amount of stock he needs to hold at a time, hence saving on costs of storage, insurance and risk, in case demand is below expectations. Wide choice of related products 1. A wholesaler offers a variety of goods made by various manufacturers, both local and abroad. This saves the retailer time which would otherwise have to be spent in dealing with each manufacturer individually. The retailer is also kept up-to-date on the latest products available. The information supplied by the wholesaler is much less likely to be biased than that supplied by the manufacturer. Low wholesale prices 1. A cash-and-carry wholesaler who is a wholesale 'supermarket' offers retailer goods at cut prices although the latter may have to arrange for his own transport. Lower prices are possible due to savings in cost which are a result of: (a) No credit facility - sales are on 'cash' basis

(b) No delivery service (c) Self-service - no need to employ huge staff (d) Goods stocked are those that sell quickly. Services to the final consumer Regular supply at steady prices 1. Consumers are assured of a regular Supply of goods throughout the year at steady prices since the wholesaler releases the goods when required. 2. This is particularly important for goods which are produced seasonally such as rice but whose demand is regular. 3. This is because a wholesaler buys goods when they are plentiful, and hence prices are comparatively low, and releases them in times of shortage without raising prices unduly. Convenient shopping and wider choices 1. The wholesaler enables the small retailers to compete with the large retailers,especially in suburban areas where rentals are lower than in the city centre. Thus,consumers are assured of getting the goods they want from the retailer nearest to their homes. Usually, the large retailer is situated in the city centre. 2. The consumer is assured of a wider choice of goods even at the smaller shops,since the retailers get their supplies from a number of wholesalers, who would in turn obtain their supplies from many producers. 3. Since wholesalers encourage the setting up of a number of smaller retailers, consumers have a wider choice of shops. Consumer demand 1. Since the wholesaler is in closer contact with the public through feedback from retailers, he can ensure that a consumer's opinion of a particular good generally.

LERATEHER WARE PVT LTD.

I am going to emphasis on Distribution of our product CHAMOIS DEER wallets. Before setting up the prices and launch of the product we are going to rely on Cost Leadership strategy in which we are going to sell the product at very low prices than our competitors so that every body can afford to buy our product in this area of inflation and recession.

Distribution Channels:
We are going to distribute or sell CHAMOIS DEER by means of Retailers Salesman Transportation Warehouse Decoration

Warehouse:
Our warehouses are well equipped and Process in the following steps. Pick and Pack Dispatch: Storage Returns Handling Support

At all stages of the above process the system will update in real time, keeping in touch with latest information. Reporting Keeps us in control and allows to make decisions quickly to keep our business moving forward and while maintain our cost under control. Pick Pack and Despatch: Our Warehouse systems integrate with customer management software. Once an order is placed and approved it begins a smooth journey from our warehouse to customer. All delivery notes are personalised to include our logo and company details which helps us to maintain our company image and raise brand awareness with our customers.Details of despatch can be emailed to a designated address or sent by Post direct to our customer if required. To provide the most cost effective method of despatch we are linked in to DHL, and TCS services and in case of big orders we will deliver the goods through our warehouse on our own company logo mini vans. Storage: We have a modern Secure warehouse with monitored alarms and CCTV for our peace of mind. From a box to a container, from shelving to racking, fireproof storage to pallets for bulk store. Flexibility is the key to our approach and whether we need long term or short term storage, lots of space or a just a little our warehouse can cater our unique business profile.

All the goods received are checked, counted and put away. This makes the inventory control and invoicing easier and more accurate. Returns handling: Returns are a crucial element in customer service. Whether the goods are returned for replacement, repair or refund if the situation is handled quickly and efficiently it can only benefit our image and standing with our customer. Marketing Logistics will handle the returns process with the minimum amount of administration and fuss for us and the customer. By using a bespoke returns note we can quickly determine if the goods can be returned to stock for resale or resupply or if they need to be disposed off. Everyone remembers poor service, our whole philosophy is one of great customer service. The power of word of mouth marketing should only ever be used for the benefit of our business.

Free Sample Distribution:

To introduce the product in the market we are going to distribute our free samples of wallets on Major Busy Traffic Lights (Like Qalma Chowk, Shadman, Ichra, Shah Aalam Market, and Moon Market.

In front of all major retail stores.

Once our product is launched our main focus will be on following retail stores.

Pace Lahore:

HKB Lahore.

CENTRAL PLAZA GARDEN TOWN:

MAIN MARKET : LIBERTY MARKET:

HALL ROAD MARKET:

MAKRO:

MIAN PLAZA:

METRO:

PACE:

SALAAR CENTRE BARKAT MARKET: