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Tamul Plates Marketing Private Limited (TPMPL) is looking into how to strategically improve the company's distribution strategies with the confirmation of the approval of a round of funding. The company's CEO, also a co-founder of the company, is faced with the challenge of expanding distribution channels. This case study describes the various channel options available to TPMPL for distributing its products across the country.
Harvard Business Review (W20303-PDF-ENG)
April 20, 2020
Case questions answered:
- Describe the product features of Tamul Plates Marketing Private Limited (TPMPL) dinnerware and how they influence the distribution channel.
- Describe the role of distribution channels, in general, and Tamul Plates Marketing Private Limited’s needs, in particular.
- Describe the various channel options available to TPMPL for distributing its products across the country.
- TPMPL currently relies heavily on wholesalers for distribution. What are the advantages and disadvantages of this strategy?
- Map the various consumer groups onto different distribution channels, specifically with respect to TPMPL, and explain their importance.
- Analyze the economic and consumer preference features of the market and determine the best distribution channel, or combination of channels, for TPMPL to pursue to reach its future growth targets.
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Tamul Plates Marketing: Channel Challenges for an Organic Product Case Answers
1. Describe the product features of Tamul Plates Marketing Private Limited dinnerware and how they influence the distribution channel.
The existing market for Tamul Plates Marketing Private Limited comprises five distinct divisions.
For starters, disposable tableware was used mainly by high-income households for weekend parties and get-togethers. The requirement was usually for small quantities with a high degree of consistency. The second section included lavish and costly events such as weddings and other comparable occasions, which were also hosted by high-income households. Third, premium fast-food restaurants tended to utilize a lot of throw-away or disposable plates. Fourth, institutional buyers such as temples and commercial cafeterias served their customers with throw-away dinnerware. Finally, corporate or commercial events, such as company parties or conferences, are included in the last category.
When a product or service is sold, it goes through a series of intermediaries before reaching its ultimate consumer or end-user. All viable distribution routes include wholesalers, retailers, distributors, and even the internet. As a result of having extra channels, you will be able to reach a larger audience and generate more revenue.
Distribution channels refer to the pathways used by goods and services as they move from the point of origin to the point of consumption. Consumer goods industries, in particular, are increasingly dependent on the use of marketing channels to implement their marketing plans and goals.
2. Describe the role of distribution channels, in general, and Tamul Plates Marketing Private Limited’s needs, in particular.
Role of Channels of Distribution:
In the current enlarging market, dissemination channels assume a significant part in accomplishing showcasing goals of an association. A maker makes esteem utility in the item or administration; however, general setting utilities are made by dispersion channels. In the expressions of Drucker, “both the market and the circulation channels are much of the time more vital than the item. They are essential, the item is auxiliary”.
Dissemination directs help in the following ways:
1. Enhance Efficiency
The parts of dispersion channels improve the proficiency of the framework. An arrangement of makers straightforwardly managing purchasers will be less proficient than the decentralized framework, including circulation specialists.
2. Smooth Flow of Goods and Services
The circulation channels smoothen the progression of labor and products by making ownership and general setting utilities.
3. Reducing Cost of Transactions
The expense of exchanges is limited, assuming that they are embraced consistently. The conveyance through intermediates will be conceivable, assuming that items are normalized. The agreements of procurement, deal, and installments will be normalized, coming about into an expanded number of exchanges. Rather than easygoing exchanges, routine dealings will lessen the expense of showcasing.
4. Facilitate Search
The purchasers and merchants look for one another in the market to execute items and administrations. This capacity is worked with by dispersion specialists. These middle people stay in contact with dealers and purchasers. In this manner, they work with trade.
5. Fewer Stocks of Goods
Without any dispersion specialists, producers are expected to keep vast supplies of products. Whenever agents enter the chain of conveyance, stocks are kept up with by a huge number of delegates, and it decreases the weight of makers.
6. Proximity to Consumers
The delegates are more close to the shoppers when contrasted with the makers. They are in direct touch with the clients of labor and products and get their responses to the provisions. The go-betweens help makers know buyers’ reactions to the work and products brought out by them. This data is of enormous worth to makers in getting ready for their items.
Tamul Plates Marketing Private Limited
Tamul Plates Marketing Private Limited (TPMPL) is a four-year-old association developing areca nut sheath-based plates and dinnerware. It is together advanced by the areca nut leaf plate makers of Assam. The principal work of TPMPL is the creation and showcasing of dispensable plates and the promotion of leaf plate-making machines. The underlying excursion has been energizing, with the association moving from a turnover of INR 12.9 lakh to over INR 2 corers.
The items presented by TPMPL are unique as they utilize fallen sheaths which customarily have been viewed as a waste, and transform them into a climate accommodating thing, which is better than the ongoing substitutes on the lookout. The market for the item is tremendous. However, so are the difficulties of delivering and promoting them.
One of the many difficulties which TPMPL is confronting is the area of the creation of offices. It has been known for creating offices nearest to the wellspring of unrefined components, that is to say, the towns. The most rewarding business sectors are farthest from the abundance of natural substances, and matching the interest examples and inclinations is difficult. TPMPL is dealing with this test by setting up business visionaries at the town level, yet advertising and dispersion stay a test with the dependence on wholesalers being extremely weighty.
Tamul Plates Marketing Private Limited is planning for the…
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