A Project Report

On

Sales and Distribution Management

VIP Luggages

Submitted by

Deepika Iyer – 14

Mahesh Suryavanshi - 28

Navnath Shinde – 30

Shamali Joshi – 53

Shankar Sahu - 74

Under the guidance of

Prof. Kavita Kanabar

In partial fulfillment of PGDM course at

Vivekanand Education Society’s Institute of Managemet Studies and Research

ACKNOWLEDGEMENT

Most humbly we offer obeisance at the lotus feet of the most revered who and who alone gave us

the task, guidance, inspiration, patience, faith and endurance by her own Revered self and

through others to undertake and complete the task.

We acknowledge with gratitude and appreciation, our indebtedness to our mentor & guide Prof.

Kavita Kanabar for allowing us to work on a very intrinsic part of luggage sector. We also

thank her for the ideas and basic concepts she shared with us, as it helped us a lot in

accomplishing this project of ours.

It gives us enormous gratification to articulate our thankfulness and heart full sense of

indebtedness to our family and friends for extending their support and helping us overcome the

obstacles during the course of this work.

We thank them all for their support, comments and assistance.

Industry Overview

Indian luggage industry

The luggage industry in India is currently undergoing consolidation. Competition in the sector is

expected to intensify with the entry of foreign players like Delsey of France and many other

Chinese players. The luggage market comprises three segments viz., the premium segment,

regular segment, and standard or economy segment. According to a Data monitor report,

“Luggage and leather goods sales via key retail formats in India to

2013”, luggage and leather goods market in India posted a CAGR of 13.5% between 2003 and

2009, to USD 605 million.

Bags, wallets and purses sales led the luggage and leather goods market with a share of 57.9% in

2008. For many years, the market was dominated by players like VIP and Aristocrat. Then,

Samsonite came in ~7-10 years ago, followed by American Tourister and Delsey. A few years

ago, Witco India, a specialty multi brand retail chain of luggage, bags, and travel accessories,

tapped the Indian market.

Witco currently has 12 outlets in Chennai, Bengaluru, Kochi, and Calicut and aims to be India's

leading retailer in travel requisites in the premium segment. It offers internationally renowned

premium brands like Witco, Samsonite, Kipling, Rimowa, VIP, Jansport, Giordano, Delsey,

American Tourister, Case Logic, Fiorelli, Jang, and Blue & Blues. Witco is the No.1 retailer of

Samsonite in India and the No.1 retailer for VIP luggage in South India with more than 60%

market share in Chennai.

The total luggage market is pegged at around INR 30 billion with organised and unorganized

players’ shares pegged at INR 10 billion and INR 20 billion, respectively. While hard luggage

accounts for around INR 7 billion, soft luggage’s share stands at around INR 23 bn. In the

context of the Indian luggage industry, soft luggage continues to be the prominent driver,

growing at 30% per annum, whereas hard luggage is growing at 4-5% annually. There has been a

continuous shift from hard luggage to soft luggage as the latter is much.

Current industry structure and development

Domestic Markets

Overall the luggage industry in India witnessed positive but slowing growth in demand across

price points and product categories and also faced severe cost pressures in the year under review.

Demand was positive in the first half of the year under review, aided by a good marriage season.

However, during the second half, high inflation, high interest rates, high fuel costs and high air

fares impacted leisure travel and reduced disposable income, reducing the rate of demand growth

and leading to a relatively weak festive season. Increased air fares reduced the growth of air

passenger traffic to single digit from 15% - 20% increase in last two years. Airline traffic directly

impacts the growth of luggage category especially the branded segment, where your Company

has significant share.

On the supply side, your Company witnessed stability in supplies from its domestic and imported

sources, however faced tremendous pressure on input costs. The rapidly depreciating rupee

significantly affected your Company’s margins as majority of its soft luggage is imported from

China. Chinese goods have also become more expensive in dollar terms due to the Chinese

government’s focus on domestic consumption instead of exports due to which labor costs in

China have increased steadily. Increase in cost of raw materials like plastic, aluminum etc. and

increase in freight costs have further impacted the cost of goods.

The luggage category is estimated to be of approx. ` 4000 crores in size and is growing at around

10-15% per annum. Hypermarket channel has shown robust organic growth during the year,

growing far rapidly than other distribution channels. The category has witnessed entry of some

niche international players mainly at the premium end.

The short haul sub-categories like backpacks, business satchels and trolley duffels have grown

faster than rest of the category. In the travel segment overall, Soft Luggage continues to grow

faster than Hard Luggage. However, polycarbonate luggage, i.e. a subset of hard luggage which

is a lightweight strong plastic material has shown encouraging growth, mainly due to strategic

initiatives taken by your Company in terms of new product launches and advertising campaigns.

International Markets

The International Business of your Company registered a growth in all regions led by the Asia

Pacific and Middle East & African region which grew by 37% & 21% respectively. Despite

recession and unfavorable market conditions in Europe, your Company managed to retain its

market share there. Taking cue from changing travelling requirements across the globe, the

Carlton brand launched a series of very lightweight luggage in its “Nanolite” category which

have been very well received by the consumers across geographies. The Carlton brand also

added two new ranges of very lightweight yet extremely strong Polycarbonate luggage in its

portfolio.

Going ahead, your Company plans to consolidate its position in various global markets apart

from addressing new business opportunities through private label manufacturing, especially in

the fast growing Polycarbonate segment.

OPPORTUNITIES AND THREATS - LUGGAGE

Company expects domestic luggage market growth to be under pressure for sometimes specially

during the year ahead due to a poor marriage season, high airline fares, a weaker rupee affecting

international leisure travel by Indians, global economic slowdown and slower GDP growth in

India than the growth witnessed in the last two years.

Weak global economic scenario, political uncertainty in India, growing fiscal deficit and investor

uncertainty will all have an impact on the rupee exchange rate which will significantly affect soft

luggage input costs. These factors will affect all players in luggage industry as all luggage

companies import soft luggage from China. Only those companies with enough brand and

pricing power will be able to fully or partially offset these cost increases.

Company’s market leadership and strong brands enables it to pass on higher price increases than

its competitors. On demand front, while the long term aviation industry growth story in India

remains bullish, the growth is expected to be subdued in the short term. Limited number of

marriage dates in key summer months of the year 2012-13 will also impact demand in key hard

luggage markets. Further demand in key channels like CSD is likely to be controlled. While such

factors will impact all branded luggage players, your Company has made suitable plans to

counter such pressures and continue growth momentum.

With strong brands in luggage across all channels and price segments, your Company is uniquely

poised to grow. Company has developed effective offerings in key new segments like backpacks,

satchels and very differentiated polycarbonate luggage. Your Company is also launching new

related categories like travel accessories, wallets, belts etc. mainly to be sold through its

extensive exclusive distribution channels. Company has successfully tested e-commerce, which

is emerging as another fast growing distribution channel.

SEGMENT / PRODUCT WISE PERFORMANCE

LUGGAGE

VIP brand continues to dominate the Indian luggage market with maximum share of any single

brand. VIP’s TV campaign aired in April 2011 featured several new ranges of spinner 4 wheel

luggage. Post this campaign, the dispersion of volumes of four wheelers in the category has

increased significantly. VIP Verve was launched in Diwali 2011. Verve is a stylish, durable yet

affordable polycarbonate spinner luggage which has revolutionized polycarbonate luggage

category in India. The press campaign of VIP Verve also helped to contemporarize the brand’s

imagery. Overall various initiatives during the year have helped the brand to retain its leadership

position and grow at a healthy rate.

Skybags brand was launched across all channels (traditional trade, hypermarkets, exclusive

franchisees) in April 2011 and has done extremely well in the year under review. The brand is

positioned as stylish modern travel gear, endorsed by bollywood celebrity John Abraham.

After soft launch in November 2010, your Company rolled out complete collection of Carlton

brand in India in April 2011. The brand has been supported with various marketing activities

mainly press campaigns, airport branding and Jet airline baggage tags. Your Company also

opened two Carlton mono brand stores in premium locations in Delhi which helped showcase the

brand in the right ambience. The response in these stores has been very encouraging and more

stores are planned for the current year in the cities of Mumbai and Bangalore. Other brands in the

portfolio like Alfa and Aristocrat have been able to offer value for money offering during the

year and have been able to achieve their planned numbers for the year under review.

LUGGAGE

Considering the threats, opportunities and the strengths of your Company, the key task at hand

will be to make most of the category growth across all price segments and maintain margins to

the best possible degree without affecting volume growth. Your Company is successfully

executing its multi brand – multi segment strategy with consistent investment in advertising for

all its luggage brands.

History of VIP Luggages

Formerly Aristo Plast, VIP Industries was incorporated in Jan.'68. In 1971, it became a wholly-

owned subsidiary of Blow Plast. Promoted by Dilip G Piramal, the company manufactures

moulded luggage (from high-density polyethylene), soft luggage (from nylon, polyester,

jupolene, printed polyester) and ABS luggage (from acrylonitrile butadiene styrene plastic)

including briefcases, suitcases, handbags, carry bags and vanity cases. The installed capacity for

flexible luggage is 3,60,000 pa. The company came out with a rights issue in Nov.'93 for

expansion, modernisation and balancing its plants located at Nasik, Jalgaon and Sinnar. It has a

technical collaboration with Tooling Products (Langrish), UK, to set up a state-of-the-art

toolroom to manufacture plastic injection moulds and press tools. VIP Industries sells 60% of its

output in the all-product category in the domestic market through wholesalers and 30% is sold to

institutions and the government.

VIP's R & D unit at Nasik has been accorded recognition by the Government of India, Ministry

of Science and Technology. In 1997-98, it increased the installed capacity of its

injection/vaccum moulded plastic goods by 1000 MT. During the year 1999-2000, the company's

exports increased from 14.91 crores from the previous year to 15.49 crores in the current year

registering a growth of 4%. The company is planning to develop new luggage ranges with

advanced design and superior aesthetics. The company has entered into technical collaboration

with Delsey S A France for manufacturing some of their premium range suitcases & briefcases.

VIP Industries (VIP) is India's largest manufacturer of luggage carriers, and over the years, has

become a generic name for luggage for the Indian traveller. Set up in 1971, VIP emerged as a

popular brand during the 1980s and the 1990s predominantly due to innovative products backed

by successful brand building initiatives. However, in the new millennium the company

experienced decreasing sales and had to struggle with several challenges due to stiff competition

from multinational brands and the presence of a huge unorganised sector that offered cheaper

imitations.

Recently Luggage major VIP Industries recently introduced Caprese, making a foray into

branded ladies handbag category. The company aims to be a dominant player in the Rs 2,000

crores segment over the next five years and is also eyeing lifestyle and fashion accessories for

women. It holds the exclusive brand rights to Caprese in all markets, including Europe and is

currently in talks to distribute the brand in Hong Kong, Singapore and Dubai in addition to

launching the same in the domestic market. Seeing a huge gap in the ladies bag segment, where

according to VIP, no dominant player exists in the Rs 2,000-7,000 price point category, the

company has decided to cash in on the opportunity between the high price points of the luxury

brands and the inferior style and quality labels. And it is certain that company’s strength in

design, sourcing and retailing will help in uniquely positioning the brand in India.

On the revenue contribution front, VIP expects Caprese’s sales to be equal to luggage sales since

fashion according to them is a larger market than luggage. The company will roll out the

handbags in 100 cities and sell them at retail outlets, including 400 VIP Lounges.

EXPORTS AND INTERNATIONAL OPERATIONS

Exports for the year ended 31st March 2012 were at ` 82.87 crores as against ` 73.07 crores in

the previous year, an increase of approximately 13% over the previous year. Global economic

condition continued to remain weak especially in Europe, however your Company consolidated

its market share in the Middle East and Asia Pacific. Company is expecting that with the

introduction of its new ranges, it will be able to further strengthen the market share in the coming

years.

CARLTON TRAVEL GOODS LIMITED

As you are aware, Carlton Travel Goods Limited (CTGL), the wholly owned subsidiary of your

Company in UK incurred heavy losses over the past several years even after taking all measures

to improve sales and reduce losses. In the circumstances, CTGL decided to dissolve the

Company. Accordingly, the Registrar of Companies for England and Wales had dissolved CTGL

on 6th December, 2011.

SUBSIDIARY IN BANGLADESH

Your Company set up a wholly owned subsidiary in Bangladesh under the name and style of

V.I.P. Industries Bangladesh Private Limited with an Authorised Share Capital of BDT 250

million (Two Hundred and Fifty Million Bangladesh Taka) to carry out manufacturing

operations of luggage in Bangladesh.

Asia’s No. 1 luggage maker and the world’s second largest, headed by Mr. Dilip G. Piramal. A

part of the DG Piramal Group, VIP, established in 1971, heralded the birth of modern luggage in

India. The company's four factories produce nearly five million pieces a year. The state-of-the-

art VIP Design Lab at Nashik has to be credit several international patents and design

registrations. Since inception, the company has kept in step with the changing need and taste of

the discerning and quality conscious traveler. VIP Industries already has a global footprint with

its products available not just across India but also all over Middle East, the UK, USA, Germany,

Spain, Italy and select African and South East Asian countries.

Leadership position in organized market with presence in all price ranges

VIP has presence in various price ranges (low, medium and premium) in the luggage segment.

Presence across the price range coupled with strong brand image and distribution network has

ensured leadership position for VIP in the Indian organized market (60% share). To maintain this

position, the company’s ability to continuously innovate and launch new products will be

critical.

Competition from unorganised sector and international brands

The unorganised segment is expected to grow at a faster rate as most of the unorganised players

import luggage, which is aggressively priced with compromise in quality. The increasing

competition from the unorganised sector remains a challenge for VIP with rising raw material

prices. VIP also faces stiff competition from international brands like American Tourister and

Samsonite.

Competition may strengthen further if the slowdown in Chinese economy results in dumping of

consumer goods in international markets especially in countries like India with high domestic

demand.

Product Portfolio

The product portfolio of VIP Industries Ltd. today includes a diverse range of hard-sided and

soft-sided luggage. The range includes strollys, suitcases, duffles and overnight travel solutions,

executive cases, backpacks, and even school bags. VIP Industries Ltd. has renowned brands like

VIP, Alfa, Footloose, and Buddy covering the entire spectrum of travel products. VIP Industries

Ltd. has a license and markets Delsey products in India and SAARC countries.

These products reach over 8000 retail outlets across the country. Outside India, we have a

network of over 1300 retailers across 27 countries. Our range includes injection moulded PP

cases; vacuum formed ABS cases as well as soft-side luggage in nylon, polyester and EVA

material.

Luggage Hard suitcase, soft suitcase,

hard upright, soft upright, cabin

luggage.

Polypropylene,

polycarbonate,

ABS nylon.

Travel Bags Totes, travel bag, trekking

bag, trolley tote.

Nylon, leather

Backpacks School bag, trekking bag, laptop

backpack.

Nylon

Executive

bag /

Portfolio

Briefcase, soft executive bag,

laptop bag, Laptop trolley,

messenger bag

Nylon, synthetic

(foam),

polyurethane,

leather.

Belts Pure Leather

Reversal belt with reversible

buckle & regular buckle

Regular belt with fancy buckle

& regular buckle

Casual belts

Leather

Wallets Pure Leather

3 to 10 credit card holder with

pockets for coins and identity

Leather

card

Card holder with pockets for

coins

Zip pockets, 2 fold wallet with

pockets for coins and cards 3

fold wallets with pockets for

coins and cards

Credit card holder with 10 to 20

pockets

Travel

Accessories

Security leg wallet, hip money

belt, neck safe pouch,

secret wallet, shoe bags, passport

control with 7 compartments,

hands free CD case, MP3 player

case, iPod case, eye glass holder,

cell pouch, foldable bag, key

lock, number lock, luggage tag,

travel pillow, toilet kit, luggage

strap, key pouch, travel security

with number lock etc

Handbags Office / Everyday bag, mess bag,

shopping bag, leather bag,

leather purses, leather wallets,

jewel bag, fancy, vanity hard,

vanity soft

Leather, Nylon

The company entered the nineties with four sub-brands, segmented on form and customer

profile. Market Positioning :

Skybags - soft luggage range, for the business traveler.

Alfa - economy range, for the first-time buyer or the up grader to the branded

segment.

VIP range - priced twice as much as Alfa, for the stereotypical Indian luggage

customer.

Odyssey - for the exclusive, lifestyle buyer.

VIP Industry is Asia’s largest luggage manufacturers & world’s second largest luggage

manufacturer. It has some of the finest brands & has been ranked second in the recent brand

awareness survey. The growth rate and sales in each of these brands in 1992 indicate the skewed

growth towards the upper end of the market.

These all brands are found in the lower segment. It has manufacturing facilities in Nasik,

Nagpur, Jalgaon & Sinner. It proposes to start manufacturing units in Sri Lanka & other

SAARC countries. VIP manufactures 280 models. The manufacturing long-term objective

capacity is 12000 units per day. VIP has a strong 4000 dealer network in place.

Long Term Objectives:

To achieve 50% of the turn over from exports & become a major player in the International

market by the year 2005.

To get a major chunk of the unorganized sector through their product ‘MANTRA’.

BRAND Contribution

to sales (%)

Growth Rate (%)

Skybags 10 35

Alfa 40 3

VIP range

35 10

Odyssey 15 30

Short Term Objectives:

To have a volume & value growth of 15%.

Segmentation

VIP is catering to income group of 5000-10000 for the standard & popular segment product &

their premium product is targeted to an income group of 10000+. They are catering to all the four

zones.

Distribution Network

VIP has 21 branches & a strong dealer network of approximately 5000.

Product Differentiation

VIP has made a dent into the unorganized sector as

the only branded product present in the standard

segment.

Premium Segment :-

There is hardly any differentiation in the product offered by VIP. Product is almost same as to

the product of their competitors Samsonite in features. The differentiation is only in terms of

prices (VIP is @ 20% cheaper than Samsonite.)

Popular Segment:-

It is the segment where VIP makes money. This segment provides a better margin. The luggage

is of the frameless type & the company has a large market share. The product is promoted as

sturdy & enduring hard knocks of travel in India.

Market Distribution – in India

Sales Channel Share (%)

Army canteens 30-40%

Luggage shops 60%

Market Distribution – World over

Sales channel Share (%)

Department Stores 41

Luggage shops 21

Catalogue stores 16

Variety stores 15

Mail order 2

Others 5

Standard Segment:-

Product has the bare minimum features & is differentiated on low prices. Product is promoted as

value for money.

Positioning

It positions itself as an A-Z luggage company without diffusion of the mother brand.

V.I.P. is looking at tapping the lucrative European market where people are buying more

luggage

Sales Strategy

VIP has established itself in the Indian market using product innovations, stress on quality and

brand building. VIP was the first to introduce “non reversible multi safe lock”, soft grip handle,

dual action lock and central locking system. These innovations together with brand building

made VIP a market leader.

Then VIP faced the problem faced by most of the giants: the brand becoming generic to the

category and local brands eating into the share of the company.

In 1997 came a formidable threat to VIP – Samsonite. With in short time Samsonite established

its presence in the luxury segment of the market. While VIP was very dominant in the mid-

segment, it had no presence in the luxury segment. Samsonite posed a major threat to VIP and

garnered a market share of about 35% in the luggage market within a short period of time. This

forced VIP to seriously reconsider its marketing strategy. To counter the threat of Samsonite,

VIP launched Elanza range of premium luggages. Samsonite meanwhile also wanted to enter the

popular segment (800- 2000 range). It launched the brand “American Tourister “to enter this

segment posing a major threat to the market leader. More over Samsonite had an international

contemporary look and appealed to the new generation than VIP which was not perceived as a

vibrant brand.

In order to attract the new generation and create a new brand identity, VIP embarked on a

rebranding exercise. The usual ads of VIP was appealing to the middle class and focusing more

on emotion. The “Kal Bhi, Aaj Bhi” ads were very powerful and appealed to the middleclass.

But since the consumers changed, in order to succeed, the brand had to have a contemporary

look.

The new strategy of VIP is focusing on capturing or owning the concept of “Travel”. The logo

was changed to a more contemporary logo and the ads were changed to communicate the new

positioning. The agency thought of the most appropriate moments of travel and decided that the

“time of departure “are the most critical constituents of travel. The ads aimed to tie the brand to

Travel. Thus originated the “Bye- Bye “campaign with a very youthful imagery that appealed

more the new generation travelers. The baseline was changed to “Happy journey” thus

attempting to own the concept of traveling.

The new campaigns were supported by new ranges of products. The sub brands of VIP include

Delsey (international brand from France) to capture the premium segment, Footloose: the trendy

bags for the youth, Buddy: school bags and Alfa: value for money segment.

VIP is a market leader that is trying hard to retain its leadership position. It had failed to create

barriers for competition by keeping many categories open for competition to enter. Now also

leather bag category is now seeing lot of action with big players like Hidesign taking the lead.

VIP does not have a presence in this segment. But with its strong brand equity and ability to

change with the consumer trends will help VIP in its future battles.

Advertising Strategy

Their advertising strategy is to promote image of sturdiness, value for money & toughness. Plan

to spend RS 20 cr. for the same. Its price ranges from RS 225 to Rs.8000. The company has also

been in fresh talks with French company Delsey, for marketing the latter's premium luggage

range.

Pricing Strategy

Market Segmentation

Segment Price range

(Rs)

Market share

(%)

Premium

1500+ 15

Popular 700-1500 30

Standard 300-700 55

The premium segment is at the top of the rung in India. It is followed by the popular segment

which is slightly larger than the premium segment but smaller than the premium segment, the

latter segment is the largest and contributes to maximum sales in developing countries. In

contrast, the standard segment in the developed countries is very small.

Such constitution of the customer profile is aiding the unorganized sector in India which

manufactures low cost goods. The high quality manufacturers are finding it difficult to penetrate

the market due to high production costs. The target customers at the high end (premium segment)

form just 15% of the total customers while the low end standard segment constitutes 55%.

The premium segment is controlled by the Apollo group (US) company, Samsonite (I). The

popular segment is dominated by the domestic giant, VIP Industries. The standard segment, the

largest segment, is serviced by VIP Industries and Universal. The unorganized players price their

products at around Rs 300 per piece.

Apart from competition and undercutting by the unorganized sector, the moulded industry is

facing a tough fight from the soft luggage segment as well. This segment has caught customer

fancy in the last few years. Even though the soft luggage segment forms just 15-20% of the total

industry. It is growing at the rate of 25% which is much higher than the moulded luggage

segment growth.

The industry majors differ in opinion on the growth rate of hard luggage or moulded luggage.

VIP Industries optimistically puts the growth rate at 10% while the multinational Samsonite says

the hard luggage market has shrunk by 4%. But, both the companies are not ready to ignore the

hard luggage market for soft luggage. Abroad, most of the luggage manufacturers are into both

hard and soft luggages. In India too, VIP and Samsonite manufacture both soft and hard luggage.

Universally, the luggage business is seasonal in nature. In India, luggage sales depends on two

factors—tourism development and on the marriage season. The marriage season extends from

March – June and from October – December. These months see good luggage sales. Also, the

domestic tourists usually plan their yearly trips during the holiday season between April – June.

During this period, there is fierce competition among the luggage manufacturers to grab the

market share.

However, socio-political turmoil in the last few years has affected the Indian tourism industry.

Market sources say all such problems have retarded the cumulative annual growth rate of the

moulded luggage industry to 5%. However the Kargil issue at Kashmir has worsened the chances

of revival of the Indian tourism industry, thereby reducing the chances of improvement in the

growth rate of the luggage industry.

SWOT Analysis

1. Strengths:-

Very high brand awareness (2nd in India).

52% market share in organized sector (largest in Asia).

11% through Universal luggage.

Form 31 years it has been in this market.

It has 21 branches & a strong dealer network of about 5000 outlets.

Low raw materials cost.

Real Value for money.

Money power & aggressive management.

All plants are ISO Certified (government recognized R & D unit in Nasik).

2. Weakness:-

Less Research & Development expenditure.

3. Opportunities:-

Scope to increase exports.

Economy is reviving.

Untapped lower segment area.

4. Threats:-

Worsening situation in Kashmir for tourism.

Unorganized sectors are cheaper by 25% due to less amount of excise duty.

Excess capacity in the South East Asian countries.

The players in the unorganized sector getting them organized and coming out with branded products.

Distribution Network

VIP has a portfolio of strong brands in the luggage segment including Carlton, V.I.P. Skybags,

Aristocrat, Alfa and Footloose. Along with the strong brand image, it has a wide distribution

network. In India, around 9,700 outlets stock VIP products, which include 671 exclusive stores

and nearly 11,000 multi-brand retailers. VIP also has its brands registered with the CSD and

sales to CSD accounted for 26% of total revenue in FY11. Besides, the company exports its

products to Europe and Middle East, which contributed about 10% of revenues in FY11.

Distribution Channel

To Customers

Sales and Distribution figures:

Sales Process

Sales is co-ordinated by Area Sales Manager (ASM), Activation Manager (AM), and a Territory

Sales In-charge (TSI). These people act as a link between the stockist and the company. The

goods move to the stockists godown by the companys truck. The stockist then appoints a Re

Stockist Salesman (RSSM) who is responsible for collecting the orders and payments from the

retail outlets.

Motivating factor - Performance based appraisal for salespersons and for promoters incentives

on the basis of the sales target