A PRESENTATION ON THE SALES AND DISTRIBUTION SYSTEM OF P&G&COOL HEADS

Presented By:-

Praneet Raj

CONTENTS

P&G Company Profile P&G Brands Old sales and distribution system of P&G Problems in the old distribution network Project Golden Eye How does FMCG S&D system differ from

Industrial System. Cool Head intro Reasons for failure of Cool Head to achieve

its sales target. Sales Promotion Plans For Cool Head.

P&G: COMPANY PROFILE Started in 1837 by William Procter and

James Gamble First products were soaps and candles Markets 250+ brands to nearly 5

billion consumers in 140 countries Main Headquarter in Cincinnati, Ohio Employ 138,000 people Fast moving consumer goods company 162 years old

P&G BRANDS

baby care: beauty care: fabric & home

care: feminine

protection: food & beverage: health care: tissues & towels:

Pampers Pantene, Head &

Shoulders Arial, Tide, Bold, Ace,

Lenor Always, Alldays, Tampax Pringles, Folgers Blend-a-Med, Vicks Swiffer

Personal & Beauty- Cosmetics, Oral Care, Hair Care

House & Home- Laundry care, Dish Soap, Snacks & Coffee

Health & Wellness- Prescription drugs, Health Care

Baby & Family Pet Care & Nutrition

MAIN COMPETITORS Johnson & Johnson Co.

Kimberly-Clark Co.

Unilever Co.

OLD SALES AND DISTRIBUTION SYSTEM OF P&G

Imitating the HLL distribution system. Using many distributors in a limited area. Applying every possible method to match the

lever. Tried to establish direct coverage of rural

market. Spent extensively on distribution network.

PROBLEMS IN THE OLD DISTRIBUTION NETWORK

Increase in cost due to increase in distribution cover.

The current volume did not justify the large distributor network.

The distributors were getting low ROI. This resulted in distributors trying to push up

volumes, but again the volume did not meet the demand.

ANALYSE THE NEW SALES AND DISTRIBUTION SYSTEM

OF P&G

PROJECT GOLDEN EYE

Moving to super- stockist set – up

Reducing its number of distributers

Provided better ROI to the distributers

Better ROI helped the distributers to

improve infrastructure

Cost saving

Large invest in advertising

Target to expend its distribution cover,

appoint new distributors and plumb for

volume growth

Process of redrawing

Rationalising distributors network

Invest in storage and warehousing

Focus on key urban market

HOW DOES AN FMCG SALES AND DISTRIBUTION SYSTEM

DIFFER FROM THE INDUSTRIAL SYSTEM

FMCG SALES

Specifically developed for the

company, which has high volume of

sales.

The rotation of stocks is high.

Higher number of intermediaries

involved.

Wide distributer network

DISTRIBUTION CHANNEL STRUCTURE FOR FMCG

Factories

Branches

WSPWholesaler Service

Providers

WDWholesaler Dealers

Secondary WholesalersRetailers

INDUSTRIAL SALES

For the companies which has low

volume of sales.

Less intermediaries involved.

CHANNELS FOR INDUSTRIAL PRODUCTS

Manufactur

er

Industrial User

Manufactu

rer

Merchant Wholesaler

User.

Manufactu

rer

Agent Wholesaler User

Industrial User

Agent

Merchant Wholesale

r

User

COOL HEADS INTRO A leading pharmaceuticals co. Established in 1985. Purely Indian co. Made its image in the last decade. Works in the field of manufacturing,

distribute & market pharmaceutical soft drinks.

In 1995 Co. MD seek the need of diversification & addition of new product to its existing range.

CONTD. Launched new product- Chocó-

coffee(Coffee with milk, cocoa & sugar.)

price of Rs74 for 400gm pack. Its target customers are middle class

peoples. The product was heavily advertised in

newspaper, magazines, radio & television.

In order to promote its product Co. made 50 stockiest with 150 representatives.

Initial discount of Rs5 was given to buyer on purchase of 400gm pack.

REASONS FOR FAILURE OF CO. TO ACHIEVE TARGET

Product is manufactured only on certain advisory notes & brief market research.

Price was high for middle class people.

Promotional strategy of the Co. was not according to its target audience.(Rs 5 discount on each pack)

The company spent too much in the initial stages.

It tried to cover the entire country in one go.

SALES PROMOTION PLAN Prize schemes1. Scheme designed for both public and the

dealers.2. For Consumers:

Attractive offers should be made, like giving a Coffee cup free with the pack.

Lucky draw coupons can also be given with the packs with attractive prizes.

3. For Dealers: Sales competition should be arranged. Special offers should be made if they show a

substantial progress in sales.

CONTD.

Trade fairs and exhibition The main objective behind this are-1. Meeting potential customers.2. Making direct sales.

Providing catalogues Advantages are-1. To get orders.2. To make the customers aware about the

specifications.3. To provide detailed information.4. To solicit product sales. Sales contest should be done to motivate the

sales force, increase sales and bring more profit to the Co.

CONTD.

Different kind of contest prizes

1. Cash awards,

2. Merchandise prizes &

3. Special honor

e.g. winners could be requested to

appear in a TV or game show.

CAN A CHANGE IN DISTRIBUTION CHANNEL BRING IMPROVEMENT IN THE SALES

OF THE COMPANY According to us YES, a change in distribution

channel can improve the sales of the Co.1. The Co. can increase its sales with the help

of trade fair & exhibition by doing direct sales to the customers.

2. The Co. can increase its sales performance by promotion its product to the target consumers preferred areas and location.

3. Also by organizing different prize schemes and sales contest among the customers, dealers & the sales force the co. can increase its sales volume.