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7/30/2019 Lec 1 - S & D
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Sales & Distribution - Introduction
3rd Nov, 2012
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S & D - Introduction
Sales Management isthe management offield sales effort in a
territory in order to
maximize : Sales revenue ( Volume
& Value sales)
Market share gains
Profitability.
Distribution Management isa part of sales mgmt whichensures that the product is
available to the consumer
within an arms length of hisdesire.
The various dist. channels
within the company include :
Own sales force C&Fas or Depots
Distributors
Transporters
Key Accounts
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Tropicana Delhi - snapshot
Delhi SM
ASM 1 -UDS
CE 1
Dist 1
PSR 1 PSR 2
Dist 2 Dist 3
CE 2 CE 3
ASM 2 -UDS
CE 4 CE 5 CE 6
ASM 3UDS
ASM 4MT & Instt
Strategic Sales Managers
Tactical Sales Managers
Operational Sales Managers
Frontline Sales Force
Distributor Sales Force
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S & D - Introduction
Number of distributors , PSRs , Customerexecutives , ASMs . get decided basis :Geography
Market potential
Companys sales budget
Sales objective key tasks
Key terms include :
Beat Plan Call Productivity
Route book
Market visibility
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S & D Emerging Trends
Mega trends include :
1. Emergence of Modern Retail formats.
2. Revolution in technology
3. E-selling ; M-selling4. Sales force diversity
5. Sales training
6. Thrust into rural markets
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S & D Emerging Trends
The retailer evolves on : Size ( equals higher leverage) Better understanding of consumer buying behavior
& trends.
Merchandising principles
Growth of labels
Multiplicity of formats ( Size / Range / Pricing )
Companies impacted & also evolve by : Separate sales force
Specialized merchandising teams
Training on negotiations , category
management , ROI , space management
ModernRetail
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S & D Emerging Trends
Emergence of social networks which
afford company an opportunity to : Opportunity to engage & reinforce brand
values.
Build community Enduring relations with
shared values. Order booking thru palm devices :
Reduce errors in billing
Better service levels based availability.
Visibility / transparency in stocks / billing
Material handling : Fork lifts / Palletization
Bar code readers
TechnologyRevolution
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S & D Emerging Trends Amazon , EBay , Yebhi , Myntra , Flipkart ,
Makemytrip , Snapdeal, ClearTrip , Yatra , Shadi
, Rediff shopping are few fully functional e-
commerce operations.
Industry impacted most by e-selling ?
E-selling imperatives are : Site architecture
Shopping-cart software
Delivery lead times ( Logistics back-end)
Financial gateway - security
Indian twist COD.
Innovation 1 month trial period
More & more upscale brands ( Louboutin , Gucci
, Burberry) are developing mobile apps enabling
m-selling & m-sharing.
E-selling&M-selling
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S & D Emerging Trends
M-selling
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S & D Emerging Trends
SalesForceDiversity
Increasing diversity on account of:
Increasing globalization. ( IT) Urbanization trends forcing movement
Women adopting careers in sales
Needs the Sales Managers to not only deal with
diversity but harness it.
Selling complexity New retail formats
Successful selling predicated on RightAttitude coupled with Right Skills.
Sales training plays a critical role towards :
Company success in market place
Sales team motivation
Identifying / developing a talent pool for
promotion.
SalesTraining
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S & D Emerging Trends
Can you name a few companies which
have used rural thrust successfully ? Hero Honda
Maruti Suzuki
ITC / HUL / Colgate / Dabur
LG
Why is this trend emerging and how is
it both a threat and an opportunity? Saturation in major markets.
Rising rural affluence ( 4 years of normal monsoon ,NREGA ) & rural aspirations.
Higher cost-of-distribution.
De-risking of portfolio.
RuralThrust
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Continual Evaluation Details Sem IV
S.No Details of Evaluation Component Weightage Date of conducting
evaluation
1. Project( Environment / Industry & company) 5% 17
t
Nov12
2. Written case analysis ( Planning) 10% 8t
Dec12
3. Written case analysis (
Managing mktg channels)
8% 22n
Dec12
4. Written examination
( S&D , Selling , Sales effort )
12% 12t
Jan13
5. Written examination
( Managing sales force ; managing mktg
channels ; mkt logistics)
15% 9t
Feb13
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Class to be split into teams not exceeding 5
students each. Each team has the option to pick company of choice
from industry of choice viz : FMCG
Banking
Insurance
Healthcare Consumer Durables
IT
Each team then studies the selected company &determines :
How the environment has changed over last decade.
How organization evolved to stay relevant & current.
Submission on 17th Nov.
3 randomly selected teams would be asked topresent before the class.
Anoverview
Project ( Wt 5%)
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Company : ITC
Industry : Cigarettes , Hotels , Confectionery .
Project Sample Slide
Broad Industry Trends1. Emergence of modern retail
formats
2. Rising rural affluence
3. Growing middle class & rising
consumption trends.
4. Smoking on government
negative list Increasing
excise / Pack declaration
Revenue stream under threat.
ITC response :1. De-risking of business through
entry into sunrise industries (
McKinsey report on food) : Confectionery
Namkeen
Soups / Noodles / pastas
Personal care
Wills Lifestyle2. ITC Chaupal The rural
supermarket
Presented by : AAAA , BBBB , CCCC , DDDD , EEEE , FFFF , GGGG , HHHH