Read the following case study and answer question.
Ranvijay is an entrepreneur who has set up his enterprise with the manufacturing of an innovative product i.e. GPRS glasses with Al feature which is going to help the blind people in navigation and identifying places and people in front through voice. He has given a unique name to his product "Elinir". For all the usage instructions to reach to the consumer, he got them printed over the packaging which is made up of biodegradable material. He wants to get it advertised by some celebrity but fears that the cost of product may increase with the involvement of celebrity and will make it unaffordable. He is also planning to open his own outlets and his own website in order to sell the product.
Identify the channel of distribution used by Ranvijay to sell his product?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Direct Channel
Option (1) Direct Channel — Correct. The passage says Ranvijay plans to sell through his own outlets and his own website. So the product goes straight from the maker to the customer, with no middleman in between. This is the direct channel (zero level channel). Selling through the maker’s own retail outlets and internet selling are its examples.
Option (2) Indirect Channel — Incorrect. An indirect channel uses one or more middlemen to move the goods to the customer. Ranvijay uses none.
Option (3) Two level Channel — Incorrect. Here the goods pass through a wholesaler and a retailer. This is not Ranvijay’s plan.
Option (4) Three level Channel — Incorrect. Here an agent, a wholesaler and a retailer all come in between. This is the longest channel, the opposite of selling directly.
Note: The levels of channels of distribution are not there in the latest NCERT textbook (2026-27). They were there in the pre-rationalised NCERT, and hence this question has been picked from the pre-rationalised NCERT. NCERT (Pre-rationalised Edition): “Direct Channel (Zero Level) The most simple and the shortest mode of distribution is direct distribution, where in the goods are made directly available by the manufacturers to customers, without” “involving any intermediary. This is also called zero level channel. A straight and direct relationship is established between the manufacturer and the customer. For example, when a manufacturer sells his goods through his own retail outlets (e.g., Mc Donald, Bata); it is referred to as direct channel. Similarly, mail order selling, internet selling and selling through own sales force, (e.g., Eureka Forbes) are example of direct selling or zero level channel.” “Indirect Channels When a manufacturer employs one or more intermediary to move goods from the point of production to the point of consumption, the distribution network is called indirect. …” |