Sales and Distribution(S&D) Presentation on Proctor n Gamble

7/31/2019 Sales and Distribution(S&D) Presentation on Proctor n Gamble

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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.


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P&G: COMPANYPROFILE

Started in 1837 by William Procter and JamesGamble

First products were soaps and candles

Markets 250+ brands to nearly 5 billionconsumers in 140 countries

Main Headquarter in Cincinnati, Ohio

Employ 138,000 people Fast moving consumer goods company

162 years old


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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


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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


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MAIN COMPETITORS

Johnson & Johnson Co.

Kimberly-Clark Co.

Unilever Co.


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OLDSALESANDDISTRIBUTION

SYSTEMOFP&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.


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PROBLEMSINTHEOLDDISTRIBUTION

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.


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Moving to super- stockist setup

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


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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


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HOWDOESAN FMCG SALESANDDISTRIBUTIONSYSTEMDIFFERFROMTHE

INDUSTRIALSYSTEM


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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


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DISTRIBUTION CHANNEL STRUCTURE FORFMCG

Factories

Branches

WSP

Wholesaler Service

Providers

WDWholesaler Dealers

Secondary WholesalersRetailers


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INDUSTRIALSALES

For the companies which has low volume of

sales.

Less intermediaries involved.


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CHANNELSFORINDUSTRIAL PRODUCTS

Manufactu

rer

Industrial

User

Manufact

urer

MerchantWholesaler

User.

Manufact

urer

Agent

Wholesaler User

IndustrialUser

Agent

Merchant

Wholesal

er

User


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COOLHEADSINTRO

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.


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CONTD.

Launched new product- Choc-coffee(Coffeewith 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 50stockiest with 150 representatives.

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


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REASONSFORFAILUREOFCO. TOACHIEVETARGET

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 itstarget 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.


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SALESPROMOTIONPLAN

1. Scheme designed for both public and the dealers.2. For Consumers:

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

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

3. For Dealers:

Sales competition should be arranged. Special offers should be made if they show a substantial

progress in sales.


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CONTD.

1. Cash awards,

2. Merchandise prizes &

3. Special honor

e.g. winners could be requested to appear in a

TV or game show.

C D


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CANACHANGEIN DISTRIBUTIONCHANNELBRINGIMPROVEMENTINTHESALESOFTHE

COMPANY According to us 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 thecustomers.

2. The Co. can increase its sales performance bypromotion its product to the target consumers

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


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Sales and Distribution(S&D) Presentation on Proctor n Gamble

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Transcript of Sales and Distribution(S&D) Presentation on Proctor n Gamble