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Sales & Distribution - Introduction

3rd Nov, 2012

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S & D - Introduction

Sales Management isthe management offield sales effort in a

territory in order to

maximize : Sales revenue ( Volume

& Value sales)

Market share gains

Profitability.

Distribution Management isa part of sales mgmt whichensures that the product is

available to the consumer

within an arms length of hisdesire.

The various dist. channels

within the company include :

Own sales force C&Fas or Depots

Distributors

Transporters

Key Accounts

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Tropicana Delhi - snapshot

Delhi SM

ASM 1 -UDS

CE 1

Dist 1

PSR 1 PSR 2

Dist 2 Dist 3

CE 2 CE 3

ASM 2 -UDS

CE 4 CE 5 CE 6

ASM 3UDS

ASM 4MT & Instt

Strategic Sales Managers

Tactical Sales Managers

Operational Sales Managers

Frontline Sales Force

Distributor Sales Force

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S & D - Introduction

Number of distributors , PSRs , Customerexecutives , ASMs . get decided basis :Geography

Market potential

Companys sales budget

Sales objective key tasks

Key terms include :

Beat Plan Call Productivity

Route book

Market visibility

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S & D Emerging Trends

Mega trends include :

1. Emergence of Modern Retail formats.

2. Revolution in technology

3. E-selling ; M-selling4. Sales force diversity

5. Sales training

6. Thrust into rural markets

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S & D Emerging Trends

The retailer evolves on : Size ( equals higher leverage) Better understanding of consumer buying behavior

& trends.

Merchandising principles

Growth of labels

Multiplicity of formats ( Size / Range / Pricing )

Companies impacted & also evolve by : Separate sales force

Specialized merchandising teams

Training on negotiations , category

management , ROI , space management

ModernRetail

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S & D Emerging Trends

Emergence of social networks which

afford company an opportunity to : Opportunity to engage & reinforce brand

values.

Build community Enduring relations with

shared values. Order booking thru palm devices :

Reduce errors in billing

Better service levels based availability.

Visibility / transparency in stocks / billing

Material handling : Fork lifts / Palletization

Bar code readers

TechnologyRevolution

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S & D Emerging Trends Amazon , EBay , Yebhi , Myntra , Flipkart ,

Makemytrip , Snapdeal, ClearTrip , Yatra , Shadi

, Rediff shopping are few fully functional e-

commerce operations.

Industry impacted most by e-selling ?

E-selling imperatives are : Site architecture

Shopping-cart software

Delivery lead times ( Logistics back-end)

Financial gateway - security

Indian twist COD.

Innovation 1 month trial period

More & more upscale brands ( Louboutin , Gucci

, Burberry) are developing mobile apps enabling

m-selling & m-sharing.

E-selling&M-selling

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S & D Emerging Trends

M-selling

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S & D Emerging Trends

SalesForceDiversity

Increasing diversity on account of:

Increasing globalization. ( IT) Urbanization trends forcing movement

Women adopting careers in sales

Needs the Sales Managers to not only deal with

diversity but harness it.

Selling complexity New retail formats

Successful selling predicated on RightAttitude coupled with Right Skills.

Sales training plays a critical role towards :

Company success in market place

Sales team motivation

Identifying / developing a talent pool for

promotion.

SalesTraining

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S & D Emerging Trends

Can you name a few companies which

have used rural thrust successfully ? Hero Honda

Maruti Suzuki

ITC / HUL / Colgate / Dabur

LG

Why is this trend emerging and how is

it both a threat and an opportunity? Saturation in major markets.

Rising rural affluence ( 4 years of normal monsoon ,NREGA ) & rural aspirations.

Higher cost-of-distribution.

De-risking of portfolio.

RuralThrust

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Continual Evaluation Details Sem IV

S.No Details of Evaluation Component Weightage Date of conducting

evaluation

1. Project( Environment / Industry & company) 5% 17

t

Nov12

2. Written case analysis ( Planning) 10% 8t

Dec12

3. Written case analysis (

Managing mktg channels)

8% 22n

Dec12

4. Written examination

( S&D , Selling , Sales effort )

12% 12t

Jan13

5. Written examination

( Managing sales force ; managing mktg

channels ; mkt logistics)

15% 9t

Feb13

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Class to be split into teams not exceeding 5

students each. Each team has the option to pick company of choice

from industry of choice viz : FMCG

Banking

Insurance

Healthcare Consumer Durables

IT

Each team then studies the selected company &determines :

How the environment has changed over last decade.

How organization evolved to stay relevant & current.

Submission on 17th Nov.

3 randomly selected teams would be asked topresent before the class.

Anoverview

Project ( Wt 5%)

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Company : ITC

Industry : Cigarettes , Hotels , Confectionery .

Project Sample Slide

Broad Industry Trends1. Emergence of modern retail

formats

2. Rising rural affluence

3. Growing middle class & rising

consumption trends.

4. Smoking on government

negative list Increasing

excise / Pack declaration

Revenue stream under threat.

ITC response :1. De-risking of business through

entry into sunrise industries (

McKinsey report on food) : Confectionery

Namkeen

Soups / Noodles / pastas

Personal care

Wills Lifestyle2. ITC Chaupal The rural

supermarket

Presented by : AAAA , BBBB , CCCC , DDDD , EEEE , FFFF , GGGG , HHHH