Download - Sales force management by Abdul Gafoor
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 1
FMCG SALES FORCE
MANAGEMENT
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 2
Sales Force - Design .
Recruitment.
Selection.
Training.
Supervision.
Motivation &
Evaluation.
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 3
Sales Force - Design
Sales Force - Size
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 4
Steps to estimate Sales Force size.
1. Plan the number of towns to be covered.
2. Plan the number of beats to be covered.
3. Plan the number of outlets to be covered.
4. Plan the frequency of coverage.
5. No of outlets per day covered by a sales force
Sales Force Size
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 5
Example.
1. Towns planned : 8
2. Beats / Localities per town : 5
3. Outlets planned per beat : 40
4. Frequency of outlets coverage : weekly.
4. No Of outlets per day by a Sales Force :40
5. No Of Days working in a month : 24
Sales Force Size
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 6
1.Total number of beats : 40
2. Total Outlets Coverage : 1600
3. Total Callage : 6400
Sales Force Size
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 7
Calculate the Sales Force requirement.
1. Total Callage : 6400
2. Per day callage : 6400 / 24 = 267
3. Total Sales Force required : 267 / 40
7
Sales Force Size
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 8
Calculate the Sales Force requirement.
Exercise
1. Towns planned : 12
2. Beats / Localities per town : 12
3. Outlets planned per beat : 44
4. Frequency of outlets coverage : weekly.
4. No Of covered by a Sales Force per day : 36
5. No Of Days working in a month : 23
Sales Force Size
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 9
Solution
Total number of beats : 144
Total Outlets Coverage : 6336
Total Callage : 25344
Per day Callage : 1102
Sales Force required : 31
12 x 12
144 x 44
6336 x4
25344 / 23
1102 x 31
Sales Force Size
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 10
Calculate the Sales Force requirement.
Exercise -2
1. Towns planned : 22
2. Beats / Localities per town : 26
3. Outlets planned per beat : 26
4. Frequency coverage : 50 % weekly & 50% monthly.
4. No Of covered by a Sales Force per day : 30
5. No Of Days working in a month : 26
Sales Force Size
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 11
Solution
Total number of beats : 572
Total Outlets Coverage : 14872
Total Callage : 37180
Per day Callage : 1430
Sales Force required : 48
26 x 22
572 x 26
14872/2 x 4 + 14872/2 x1
37180/26
1430 /30
Sales Force Size
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 12
From Part -1 – We know how to calculate
number of Sales Force required.
The Part -2 – Is about recruitment
of experienced sales force.
How to select right Sales Force.
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 13
Recruitment
Selection Criteria
Written test
Group Discussion
Personal Interview
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 14
Recruitment
Job knowledge
Written test is to know the candidate’s job knowledge.
To what extent the candidate can think and fulfill the job requirement
To decide the candidate’s training requirements.
To know the candidate’s numerical abilities.
Written test
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 15
Recruitment
What job knowledge required to a FMCG Sales force.
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 16
Recruitment
1. MARKET MANAGEMENT.
2. DISTRIBUTOR MANAGEMENT.
3. PEOPLE MANAGEMENT.
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 17
Recruitment
MARKET MANAGEMENT.
SALES MERCHANDISING
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 18
Recruitment
DISTRIBUTOR MANAGEMENT.
INVESTMENT INFRASTRUCTURE INVOLVEMENT INFLUENCE
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 19
Recruitment
PEOPLE MANAGEMENT.
ITINERARIES
& CONTACTS
CALLAGE
& PRODUCTIVITY
TRAINING
& DEVELOPMENT
MOTIVATION
& INCENTIVES
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 20
RecruitmentWritten test
WRITTEN TEST STARTS NOW
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 21
RecruitmentWritten test
Question-1
Modern distributors is the distributor for a FMCG company.
In his town total beats available are 6 and 310 outlets.
“A” Class outlets Contributes to 20% , “B’ Class contributes to 31.93 % ,
From the balance outlets “C” Class contributes to 29.72 % and
“D” Class contributes to 70.28
FIND OUT CLASSIFICATION OF OUTLETS
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 22
RecruitmentWritten test
ANSWER
“A” Class outlets :
“ B” Class outlets :
“ C” Class outlets :
“ D” Class outlets :
62
99
45
104
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 23
RecruitmentWritten test
Question-2
Modern distributors has launched a new brand called “ VOGIR”. The
Placement norms are “A” Class : 24 pieces, “B” Class : 6, “C’ Class : 3 &
“D” Class : 3 pieces in every second outlet.
Find out launch quantities.
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 24
RecruitmentWritten test
ANSWER
“A” Class :
“ B” Class :
“ C” Class :
“ D” Class :
1488
594
135
156
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 25
RecruitmentWritten test
Question-3
The launch and off take sale trend as follows. Launch week sale : 2000
Pieces. 2nd
week : 2900 pieces. 3rd
week : 3000 pieces and 4th
Week : 560 pieces. At the end of 4th
week 63.38 % of the target achieved.
Find out what is the total launch target of “ VIGOR”.
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 26
RecruitmentWritten test
Answer
TOTAL LAUNCH TARGET:13348
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 27
RecruitmentWritten test
Question-4
During the launch the company has given two successive trade discounts
Of 8.33% and 8.33 % to all “A” Class outlets.
Find out what is two successive trade discounts of 8.33% and after 8.33 %
are equivalent to a single discount .
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 28
RecruitmentWritten test
Answer
15.96
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 29
RecruitmentWritten test
Question-5
Modern distributors have got 6 salesmen. The total callage & productivity
Of 6 as follows. Total calls available pa : 14880. Total calls made pa :14865.
Total Productive calls pa :10405 .Total secondary sales pa : $ 2438
thousands. Total Brands sold pa :11873 and range sold pa :35620.
1.Average calls made by per salesman.
2.Average productive calls made by per salesman.
3.Average secondary sales by per salesman.
4.Average secondary sales per week.
5.Average secondary sales per week per salesman.
6.Average brands sold by per salesman.
7.Average range sold per salesman.
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 30
RecruitmentWritten test
Answer
Average calls made by per salesman : 2477.5
Average prod calls made by per salesman : 1734.16
Average secondary sales by per salesman : 406333.33
Average secondary sales per week per salesman : 7524.69
Average brands sold by per salesman : 1978.8
Average range sold by per salesman : 5936.66
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 31
RecruitmentWritten test
Question-6
Total invoices value from company to Modern distributor was $ 1976000
For the total year. The closing stock value at the end of the year$ 20000.
M/s Modern distributors investment for the year as follows.
Average stock: 2 weeks. Average credit: 8 days. Unpaid stocks : $ 11,000.
Due to company : $ 13,000 and due to company : one day secondary sales.
Expenses: 2.1 % of gross profit.
Calculate : Gross profit. Gross margin. Number of rotations.
Investment in stocks in $.Investment in market credit in $. Net investment.
Expenses in $. Net margin. Net profit. Return on investment.
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 32
RecruitmentWritten test
Answer
Gross profit : 2477.5
Gross margin : 1734.16
Number of rotations : 406333.33
Investment in stocks in $ : 7524.69
Market credit in $ : 1978.8
Net investment in $ : 5936.66
Expenses in $ 5936.66
Net margin : 5936.66
Net profit : 5936.66
ROI : 5936.66
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 33
RecruitmentWritten test
Question-7
M/s Modern distributor operated different trade promotions on one brand.
To achieve the target. First 2 months:24 + 1, next 2 months:6 + 1, next 2
Months: 10 + 1 , next 3 months :16.66% and the last 3 months:3 + 1. After all
The promotions, the cumulative target achievement was: February end: 18%
April end :26% ,august end:78%, November end:83% and December end :91%
Calculate : % of different promotions operated.
Achievement % V/s time lapse comparison.
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 34
RecruitmentWritten test
Answer24 + 1 4.17 %
6 + 1 16.67 %
10 + 1 10 %
3 + 1 33.34 %
February : 18% 16.67 %
April :26% 33.34 %
August : 78% 66.67 %
November :83 % 91.67 %
December :91 % 100 %
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 35
RecruitmentWritten test
Question-7
Mr. Rambo, sales officer has been handling M/s Modern distributors since
One year. He always feels that the capital is the only requirement to
Appoint a new distributor.
What are the key factors to be looked to appoint a new distributor..
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 36
RecruitmentWritten test
Answer
INVESTMENT
INFRASTRUCTURE
INVOLEVEMENT
INFLUENCE
Please remember the 4 “ l ” formula.
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 37
RecruitmentWritten test
Question-8
Management decided to add one more new town to Mr. Rambo. The town has
Got 1000 outlets. 20% outlets weekly coverage,25% fortnightly and the
Balance monthly.
Mr.Rambo to prepare manpower required to 1000 outlets as the sales
Force covers 40 outlets per day and works 24 days in a month.
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 38
RecruitmentWritten test
Answer
1.05 1000 / 40 /24
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 39
RecruitmentWritten test
Question-9
Mr. Rambo is handling a company depot and always facing the problem of
Depot stock management. As per the policy, all the depots should have
One week floor stock plus transit days. Mr. Rambo's depots transit time
Is one week.
This is the data of depot stock.
Product Opening
stock
Target
for
NEXT
month
Average
sales
A 10 27 23
B 15 39 16
C 25 28 31
D 120 169 155
E 16 37 49
Prepare depot indent.
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 40
RecruitmentWritten test
Answer
Product Opening
stock
Target for
NEXT month
Balance
stock
Minimum
floor
stock
Transit
days
indent
A 10 27 -17 4 4 8
B 15 39 -24 4 4 8
C 25 28 -3 8 8 16
D 120 169 -49 39 39 78
E 16 37 -21 13 13 26
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 41
RecruitmentWritten test
Answer
What is the formula?
Target + floor stock – opening stock = indent
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 42
Training
Training
&
Development
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 43
On the job training
&
Off the job training
Training
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 44
On the job training
Training
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 45
On the job training
Market work Merchandising Competition
Training
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 46
Market work
Training
Callage & Productivity
Range selling
Credit Management
Brands per call Lines per call
Stock pressure
New product launches Coverage
Width & Depth of distribution
Merchandising Trade promotions
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 47
Merchandising
Training
Displays
POP Usage
Brand image windows
Hangers DanglersShelf strips
Shelving Gondolas
Posters
Backing paper
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 48
COMPETITON
Training
Companies
Launch
promotions
Products
Pricing
Margin Trade
Promotions
Strategy to attack
Price cut Displays credit Consumer offer
Media Trade promotion
media
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 49
Off the job training
Training
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 50
Off the job training
Reporting Distributor
Management
Communication
Training
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 51
Reporting
Training
Daily Reports Weekly Reports Monthly Reports Special reports
DSR -TGT V/s Ach
Callage &Prod
Competition
New product launch
Sales log
Callage & Prod
Target V/s Ach
Primaries
V/s Secondary
Sales log
Callage & prod
Target V/s Ach
Primaries
V/s Secondary
Closing Stock
Stock Order
Off take report
Monthly Business
summaryCoverage
POP Usage
Coverage
Rural Coverage
Rural Coverage
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 52
Distributor Management
Training
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 53
Distributor Management
Training
Investment Infrastructure Involvement
Stocks
Market credit
Due from the company
Advance with company
Office & Godown
Mechanical and
non units
Furniture
People
Owner
Communication
Signatory
Controls
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 54
STOCKS
Training
Minimum floor stock management
Range Selling
Proper stocking in Godown
Re ordering levels
More rotations
Avoid investment blocks
Damage stocks
Free samples
Returned stock
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 55
MARKET CREDIT
Training
With in limits
Spread to Maximum outlets
Equal to frequency of visit
Follow bill to bill system
Some cases – Regular collection
DUE FROM CO
Submit claims in time.
Follow up for the pendings
Always have written approval
Be within budget
Keep claims copies
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 56
INFRASTRUCTURE
Training
Proper PJPs for vehicles
Vehicle cost management
Sufficient & Proper Godown
Facilities in Godown
Optimal utilization of people
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 57
INVOLVEMENT
Training
Owner participation
Communication with owner
Signatory owner
Owner – Market knowledge
Owner – Credit management
Owner Market visits
Owner – Stock management
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 58
COMMUNICATION
Training
Proper communication to Market , Distributor & field force
Company plans
Product promotions
Budgets
Investment
New Launches
Company memos
Competition
Requirements
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 59
Motivation
Training
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 60
W I I F M
Training
What’s in it for me
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 61
MOTIVATION
Motivation
Financial
Motivation
Non financial
Motivation
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 62
Motivation
CONTINUED IN NEXT
PRESENTATION
THANK YOU VERY [email protected]
FMCG Sales Force Management by
Abdul Gafoor for www.pureoranges.com 63
Motivation
Financial Motivation
Incentives Bonus Foreign Trip Gold & Silver ESO Commission