Shree Chanakya Education Society's INDIRA SCHOOL...

Shree Chanakya Education Society'sINDIRA SCHOOL OF BUSINESS STUDIES, PUNE

POST GRADUATE DIPLOMA IN MANAGEMENT - (pGDM) (Mktg -Splz)

End-Semester Examination - December 2012Semester- ill

SUBJECT: Sales Management Code: 304M

Total Marks: 60 Duration: 2~ hours

Note: 1. Q.1 is compulsory.2. Attempt any Four from remaining Five Questions3. All Question carry equal marks.

Q.1 Amul Kitchen: 12 MarksGujarat Co-Op Milk Marketing Federation (GCMMF) has four flagship products, like AmulMilk, Amul Butter, Amul Ice-cream &Amul infant milk powder or dairy-whitener. Liquidmilk contributes 40% to its revenue while other three bring remaining 60%.All these brandshave grown 10-20% year on year for last 5 years.Amul' s new launch includes milk in tetrapack, paneer, fresh fruit lassi&gajarkahalwa.Amul wants to transform every kitchen to anAmul Kitchen, i.e., from milk to meals& grow sales from Rs 9,000 cr(201O) to Rs 30,000crby 2020.Amul Pizzas venture is big flop, but Amul wanted to sell its cheese through pizzas. Now it isconcentrating on core business ... Right now Amul handles only 3% of total organized milkproduction of India i.e., 92 lakh liters per day& by 2020 it want to process 200 lakh liters ofmilk per day. During 1995 Amul introduced Amul ice-cream. Amul offered very attractiveprices, nearly 80% lower, which resulted in breaking monopoly of Kwality Walls. Till thattime ice- cream was overpriced& eating ice cream was luxury. Amul introduced realisticpricing to the market making ice cream affordable to the common man. Similarly when Arnullaunched AmulMithaiMate( sweetened condensed milk), Nestle was selling the product at Rs58. Amullaunched its brand at Rs 25 & broke the monopoly.Amul is market leader across India. Its strategy is to sell dairy whitener in places where it donot sell liquid mill. It has 88% market share in butter, 63% share in infant milk & 45% sharein milk powder.Challenges in front of Amul:(i) India's packaged milk market size is Rs 25, ooocrores, in which Amuls share is 26%.

Despite market leader, it has to compete with 5 MNC brands at national level likeBritannia, Reliance, Nestle, Mahanandetc& around 25 regional brands at district level.

(ii) (ii)As a policy decision, GCMMF never spends more than I% on brand building.More over the compulsion is to promote all brands together in a campaign like Tasteof India. Individual brand promotion is not possible because of budget problem. Forexample, for year 2011, money available for promotion could be around Rs 90-100cronly. Regional players & MNCs are spending around 6-7% on promotion & brandbuilding.

Questions:a) Do you think Amul will able to achieve its sales target ofRs 30,000cr by 2020?b) Explain Amul's pricing strategy for ice-creams & condensed milk.c) From data provided in case, compute sales for four major brands of Arnul.

Q.2 "The job of personal selling is not merely of booking orders" - In the light of this statementdescribe the changing role of personal selling and the process of selling portable VacuumCleaners in Indian Markets. Clearly state the type of objections that might be raised &strategies to overcome them.

12 Marks

Q.3 a) Define Sales Quota. Also state importance, objectives &types of sales quota for say, 12 MarksHome Appliances Company like LG, Samsung etc.

b) Ms Katrina KhanlKapoor is a sates woman working in Big TV. Her job is to sell digitalTV connections, as well arrange the installations of dish. Following data is provided.

Company: Big TVSales Person: Ms Katrina KhanlKapoor.Activity: selling TV connections & installations of dish.Activity Quota(Target) Actual Sales Weight

123 ----~---------------+----------------~Rs 50 lacs Rs 44lacs 5(i)Sales volume/year24 20 4'--------i

10 10 5(ii)New Accounts(iii)Maintaing existingAccounts(iv)Calls to prospects 1000 950 3~~----~--~------~------------~------------~--------------~~(~v~)fu~sta~lla~t_io_n~s__ ~ __ ~_2~0~ ~1~5 ~2~ ~(vi) Sending Greetings to 500 500 1valued customers.

~ ~ ~ ~2~0~ ~Evaluation Criteria:

1Financial Reward in R~~~~~----~Seven Increments in B~~~--------~Five Increments

Combination Performance Index

0.9- 0.990.8- 0.89 Three Increments0.7- 0.79 Two IncrementsLess than 0.7 One Increment.

Questions:a) a)Compute combination performance index.b) b)Increment eligibility of Katrina.

Q.4 Describe various types of channel partners & their functions as appiicable to ChocolateIndustry.

12 Marks

Q.5 What is horizontal & vertical conflicts? How to resolve such conflicts? Your answer shouldbe related to Skin Care Industry.

12 Marks

Q.6 Write short notes on: Any TWO:a) Role of organized retailers in FMCG Industry.b) Performance appraisal of channel partners for Automobile Industry.c) Sales Planning for Insurance & Banking Sector.

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12 Marks