sdm ppt final
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SALES AND DISTRIBUTION
FUNCTION
Presented by-
Swati Singh (165)
Garima Sanger (133)
Karan S Bora (137)
Mohd. Sadiq Khan (205)
Mohd. Saad Rashid (143)
Vikas Yadav (170)
FMCG Industry in India
• At present, the fourth largest sector with a total market size in excess of $13 billion as of 2012.
• Expected to grow to a $33 billion industry by 2015 and to a whooping $ 100 billion by the year 2025.
• Highly fragmented FMCG market and a considerable part of the it comprises of unorganized players selling unbranded and unpackaged products.
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HINDUSTAN UNILEVER
• India’s largest consumer goods company based in Mumbai, Maharashtra.
• Owned by British- Dutch company Unilever, controls 52% majority stake in HUL.
• Headquartered in Mumbai, India.
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I.T.C. Limited
• Incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited
• Changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974.
• Headquartered in Kolkata, West Bengal, India.• Employs over 29,000 people; more than 60
locations across India. • Listed on Forbes 2000.
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OVERVIEW OF THE COMPANIES
HUL ITC
Product lines Soaps, shampoos, detergents, beverages, packaged foods, personal care, cosmetics.
Cigarettes, foods, apparel, personal care, stationary, safety matches and agarbattis.
Market share 36.4% 30.3%
Growth rate Net profit grew at the rate of 17% .
Net profit grew at the rate of 25%.
Profit 2011- 2012- 2599.23 crores 2011- 2012- 1,333 crores
Turnover 2011- 2012- 21,735.6 crores 2011- 2012- 4,071.32 crores
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SALES ORGANIZATION STRUCTUREI.T.C. LIMITED HINDUSTAN UNILEVER
Redistribution stockist
Territory sales incharge
Sales officer
Area sales Manager
Regional sales manager
Regional Manager
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RESPONSIBILITIES OF A SALESPERSON
I.T.C. LIMITED
• Merchandising.
• Checking stocks.
• Getting distributor’s feedback.
• Maintaining good PR with the distributors
HINDUSTAN UNILEVER
• Selling and marketing of products.
• Booking orders.
• Reporting on a daily basis.
• Getting feedback from the distributors.
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SALES FORCE AUTOMATION
I.T.C. LIMITED
• SAP is used for improving transparency in billing and order placing.
• Sify online’s distribution management.
• VAJRA machine for booking orders.
HINDUSTAN UNILEVER
• HHT machines are provided for taking the orders and billing purpose.
• UNIFY software is used.
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SETTING UP OF SALES TARGETI.T.C. LIMITED HINDUSTAN UNILEVER
• Minimum billings per month.
• Sales volume
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• Non- tobacco division: stock availability in every outlet.
• Tobacco division- 1. Stock availability in
every outlet.2. Sales volume-
(+20%) of the last month sales.
CRITERIA OF TERRITORY ALLOCATION
I.T.C. LIMITED
• Past records
• On rotational basis.
HINDUSTAN UNILEVER
• On the basis of area size:– Less experienced in
retail outlets & kirana stores.
– More experienced in high frequency stores.
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PERFORMANCE APPRAISAL SYSTEM
I.T.C. LIMITED
• Monthly basis• Amount of sale of
different products.• Achievement of sales
targets• Feedback form.
HINDUSTAN UNILEVER
• Performance evaluation is done using QOC model.
• Quantitative- 80% Qualitative- 20%
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TRAINING
I.T.C. LIMITED
• Initial training- 20 days; senior salesperson accompanies the salesperson.
• Skill training- – WEP; every 6 months– Training and
development
HINDUSTAN UNILEVER
• Initial training on product knowledge.
• Fortnight training on field job.
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MOTIVATION & COMPENSATION
I.T.C. LIMITED
• Best salesman competitions are held.
• Awards and trophies are provided to the winners.
HINDUSTAN UNILEVER
• MOC awards given on the basis of QOC score.– QOC score > 4.5: 7-star
award– QOC score > 4: 5-star
award– QOC score > 3.5: 3-star
award
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DISTRIBUTORS
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HINDUSTAN UNILEVER
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Hindustan Unilever ltd.
Carrying and Forwarding Agents
Redistribution Stockist
Wholesalers
Urban retailers
Consumers
Rural retailers
Sales and Distribution Management
I.T.C. LIMITED
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Company Hub Factory
Carrying and Forwarding Agent
Distributors
Retailers
Consumers
Small Wholesalers
FUNCTIONS OF THE CHANNEL MEMBERS
I.T.C. LIMITED
• Distribution & promotion of goods.
• Gather information regarding the demand and competition.
• Inventory management.
HINDUSTAN LEVER
• Provide logistics support.
• Financing.• Make the brand
available in rural areas.
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CHANNEL SELECTION CRITERIA
I.T.C. LIMITED
• Financial reputation.• Infrastructure• Delivery vans• Degree of
computerization.• Past performance.• To deal in cigarettes, it
is must to deal in other goods.
HINDUSTAN UNILEVER
• Goodwill.• Market reach• Past reputation.• Availability of sales
force.• Warehouse &
infrastructure.• Investment capacity
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FINANCIAL TERMSITC HUL
Mode of payment Cheque. RTGS
Initial deposit No initial deposit NIL
Margin 3 % 5.5%
Credit limit No credit; only cash No credit to distributor
Order placed Online software- sify online Online software- Unify
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ITC HUL
Order cycle time 7 day pipeline reserve alongwith the replacement of order sold in a day.
In 2-3 days.
Time period for late payment
0 days. 4-6 days.
Interest on late payment
Yes; 8-10% Not mentioned; demand draft is taken.
Cash/ trade discount
NIL NIL
Mode of transport of goods
3- wheelers, pick- up vans. Delivery vans, mini- trucks.
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SATISFACTION INDEXParameters Weightage Rating Satisfaction
IndexProduct quality 25 5 125
Service quality 20 3 60
Promotional activities
20 3 60
Field work 15 4 60
Trade promotion 20 3 60
Total 100 18 365
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5 Very good
4 Good
3 Average
2 Below average
1 Dissatisfied
SATISFACTION INDEX
Parameters Weightage Rating Satisfaction Index
Product quality 25 2 50
Service quality 20 3 60
Promotional activities
25 5 175
Field work 15 4 60
Trade promotion 15 5 75
Total 100 19 420
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RETAILERS
RETAILERSITC HUL
Role Sales to the customer, determining trends in the market
Sales to the customer, trends determination in the market
Payment Cash Cash
Margins on different products
Upto 10% 2-10%
Average sales per month
1) Rs. 20-25 thousand per month2) Rs. 10000 per month
1) Rs. 70-80 thousand per month2) Rs. 48000 per month
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ITC HUL
Promotional activities Bingo display stands are provided to the retailers, dummy packs.
Display packs, gifts to retailers.
Transport service Delivery vans, 3- wheeler autos.
Delivery vans, autos.
Average order cycle time
Next day 2-3 days
Credit period from distributor
Credit period of 1 week from distributor
Credit period of 1 week from distributor
Service of sales person
Pay frequent visit to them Come once or twice in 4-6 months
Acquisition of products from
Distributor (Govindpuri) Wholesaler (Kalkaji)
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SATISFACTION INDEXParameters Weightage Rating Satisfaction
IndexDelivery time 15 4 60
Quality of product
20 5 100
Incentives 10 3 30
Promotional activities
15 3 45
Transport service
15 5 75
Commercial terms
10 2 20
Service of salesperson
15 2 30
Total 100 24 360
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5 Very good 4 Good
3 Average 2 Below average
1 Dissatisfied
SATISFACTION INDEXParameters Weightage Rating Satisfaction Index
Delivery time 15 5 75
Quality of product
15 4 60
Incentives 15 4 60
Promotional activities
20 5 100
Transport service
10 4 40
Commercial terms
10 3 30
Service of salesperson
15 4 60
Total 100 29 425 27
RECOMMENDATIONS
I.T.C. LIMITED• Provide credit period facility to distributors.• Provide greater margin.
HINDUSTAN UNILEVER• Provide credit period facility to distributors.• Salespersons should pay frequent visits to
the distributors and retailers.• More prompt in order delivery.
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