IMIS

Bhubaneswar
COURSE MANUAL
Batch : 2009-11 Channel Management (C-504)
Term : V Prof. S. Panda

Course Objective
The objective of this course is to make the student aware about the fundamentals of distribution channel
management practices. Starting from the basic level the course attempts to bring in thorough
understanding of channel management in an organization. The course lays emphasis on the project work
to be undertaken by the students identifying practical insights from the field. It is expected that at the end
of the course the student must have covered all facets of functions & responsibilities of a channel
manager.

Note: This is a new course and the content is in the process of development. Currently there is no book
available matching the course requirements. Hence it is challenging for both the teacher as well students
who would undergo this course. It is therefore suggested to all opted students for the course not to miss
classes and meticulously record class discussions. The class discussions will provide the basis for all
evaluations to be undertaken in the paper. But certain handouts will be made available and cases will be
circulated in the class.

Session-wise Breakups

No Topics & Coverage Pedagogy & Class Discussions

Basic terms and concepts in channel

management - 1

Transactional Efficiency, Producer and buyer

needs, breaking the bulk, Distribution Channel,
Distribution Intensity, VMS, Distributor,
Stockist, Dealer, Sub-Dealer, Retailer, Class Focus : Advance cheque system &
1
Wholesaler, Sale, Gross sales, Net Sales, operational procedures on payment settlements
Invoice, Credit Notes, Outstanding or
receivable, Reverse Distribution, Delivery
challan, Lorry Receipt (L/R) & other NIs, The
operational mechanism of goods, title &
payment settlements within a distribution
setup.
Basic terms and concepts in channel
management - 2 Class Discussion 1: SKU planning
Stock Cover, SKU, Sales Cycle, Journey Cycle
2 & its designs w.r.t sales person productivity & Class Discussion 2: Beat Plan designing for
motivation, Route Plan, Beat plan, Primary distribution operational efficiency & cost
Sale, Secondary Sale, Tertiary Sale, Concept minimization: Case:
of sales territory etc.
Concept of Pipeline stock & its
Class Discussion : Focusing on primary sales &
management: Seasonal variations & customer
3 new product launching, Focusing on secondary
need matching & making channel member
sales & balancing primary & secondary sales
invest on seasonal variations
Channel Design:
Channel Levels, Consumer Durable Channel
Case Discussion 1: P&G’s Golden Eye Project
Designs & Consumer Non-Durable Channel
4
design considerations, Consumer expectations
Case Discussion 2: Channel Evolution @ Godrej
& product type as a basis for channel design,
Need based channel design modifications
 Wholesalers in the Channel:
Appointing wholesalers & managing them for
Class Discussion: Requirement of wholesalers in
sales maximizations, Wholesaler clout &
5 an FMCG channel & balancing retail-wholesale
dealing them effectively, Goods infiltration in
counters.
wrong territories & controlling them, Pricing in
wholesale markets
Case Discussion 1: The approach & pitching for
Appointing Channel Members:
distributor appointment for Rekitt Benkaiser.
6 Right approaches to Distributor Appointment,
Case Discussion 2: Selection of a new distributor
Evaluation of Channel Intermediaries
by evaluating various options.
Case Discussion 1: FMCG Distributor & the
Market Development - 1:
Distribution Infrastructure
Working on getting additional investments by
7
the distributor based market development
Case Discussion 2: Dividing Distributor
needs.
Territories
Market Development – 2:
Dealer motivation & optimal number of
counters in a distribution setup in durables
Class Discussion: Dos & Don’ts in market
8 market, Problems of saturation, Coping
development in exisiting & new markets.
competition while developing market,
Penetration, intensity & credit period issues in
market development
Trade Promotion:
Trade Promotion in FMCG: Manipulating
Case Discussion: Trade Cartels in durables
9 company scheme as per the counter sales
needs, Trade promotion in durables, Scheme
Design
Role of Information Technology
Tracking Systems, Problem of high-tech
10 Case: Mobile Phones Project
products & dealing with obsolescence,
Automatic indenting systems
Handling organized Retail & national
Accounts: Class Focus: Balancing modern trade with
11
Need for a separate national account handling traditional trade channels
cell, Handling organized retail
Impact of legal issues in channel
management

Business agreements, record keeping of Class Discussion: Workshop Mode, Take Notes
12 inbound and outbound materials, of the Discussions
documentations and branch accounts, claim
settlements, legality of schemes and lottery
registration, sales tax, bad debts, grievance
handling and other statutory requirements
Pre-seminar discussion: Old System of sales
13
Value Added Tax (VAT): Tax Structure & its taxes
&
impact, Related Documentations Seminar mode: “New system of VAT” by a Sales
14
Tax Practitioner
Managing Channel During Corporate
15 Seminar Mode: by Phillips India Orissa Head
Restructuring/Transition etc.
Channel Conflicts: Issues & their resolution,
Power in distribution channels and their Class Discussion: Price Undercutting & How to
16 impact, Negotiation as a tool in channel reduce its effect in durable & Non-Durable
management, managing short supplies, Claim markets
settlements
Evaluating channel performance

Setting parameters for evaluation, assigning Class Discussion: Developing KRAs for channel
17
weights to KRAs, Mutually agreeing on taking members
corrective and progressive actions
 Maximizing Channel Sales: Working with
dealer sales infrastructure for durable sales, Class Discussion: Customize sales based on
18
Working with distributor sales infrastructure for customer demographics
FMCG sales
Physical Distribution
Class Discussion : Outsourcing as an Option in
An overview of the physical distribution Physical distribution
19
system, Tradeoffs involved between logistics
and distribution, identifying number of
warehouses required in the distribution system
Open House: Clarifying your doubts &
20
Preparations for end term examination
21 Topics will be allocated and groups will be formed
Student Project Presentations
& in the class in the second week of the
22 commencement of the course.

Suggested Readings

• Marketing Channels by Louis W. Stern, Adel I. El-Ansary & Anne T. Coughlan.

• Marketing Channel Management by Pingali Venugopal.
• Sales Management by Richard R. Still, Edward W. Cundiff & Norman A.P. Govoni.
• Sales and Distribution Management by Tapan K. Panda & Sunil Sahadev
• Sales Management: Teamwork, Leadership and Management by Charles M Futrell (Text)

Additional Readings

• “Efficient replenishment in the distribution channel” By Yan Donga,∗, Venkatesh Shankar b,1, Martin
Dresner C.
• “Mathematical Models of Distribution Channels” By Rudolf Rosas Flunger
• “Interfirm Influence Strategies within Distribution Channels” By Soumava Bandyopadhyay
• “Channel management and sales management: Some key interfaces” By Bert Rosenbloom; Rolph
Anderson
• “Direct Marketing, Indirect Profits: A Strategic Analysis of Dual-Channel Supply-Chain Design” By
Wei-yu Kevin Chiang, “Dilip Chhajed, James D. Hess
• “Coordinating Channels under Price and Non-price Competition” By Ganesh Iyer
• “Pull Promotions and Channel Coordination” By Eitan Gerstner; By James D. Hess
• “Resource Allocation Behavior in Conventional Channels” By Erin Anderson, Leonard M.Lodish, and
Barton A.Weitz

For additional readings, collect these research papers personally from me and discuss the
learning beyond class timings.

Project

This is a group activity and the groups will be formed. This project assignment has a field component.
Grouping and other parameters regarding the project will be announced in the class. This project will
cover both, written and oral submission requirements for the course.

Quizzing

There will be two quizzes conducted each in pre-mid term and post-mid term sessions. Both the quizzes
will be taken without any prior intimation. (Weightage: 10%)
Important Note

1. No request will be entertained for shifting of presentation dates.

2. You have to complete the field assignment (group-wise) within the stipulated time.
3. No special provisions will be made to make time available for field assignments. You have to plan
your own schedules for these assignments.
4. No girl student will work beyond 6.00 p.m. in the field and should always be accompanied by
male students of the group while visiting the field.
5. Appropriate penalty will be given for late submission of assignments.
6. No cross migration within groups is allowed.
7. There will be no midterm examination in this paper.

The evaluation components are:

Quiz: - 10 percent
Class Participation - 10 percent
Written report on Project - 15 percent
Oral Presentation of Project - 15 percent
Class Written Test - 10 percent
End-Term - 40 percent