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