Sales n Distri - Oct 4 Th

Embed Size (px)

Citation preview

  • 8/14/2019 Sales n Distri - Oct 4 Th

    1/25

    JOHN DEERE EQUIPMENTPRIVATE LIMITED

    JohnDe

    ere

    SALES AND DISTRIBUTION

    Nailesh JacobAnish PandathPradeep KumarRishabh SoodGovindarajan ASymbiosis Institute ofInternational Business,Pune

  • 8/14/2019 Sales n Distri - Oct 4 Th

    2/25

    INTRODUCTION

    Founded in 1837, presently employees around 56000

    employees.

    Its business is spread over 52 countries in the world,

    with its headquarters located at USA.

    For 2008, its net sales from equipments account for

    about 26000 million USD.

    John Deere

  • 8/14/2019 Sales n Distri - Oct 4 Th

    3/25

    John Deere consists of three major business segments:

    agriculture and turf- includes farm equipments,

    irrigation equipments, tractors, golf course equipmentsetc.

    construction and forestry- leading manufacturer of

    forestry equipments and construction equipments aswell.

    credit- in addition to financing of its agricultural andconstruction equipments, also offers operating loans tofarmers, crop insurance etc.

    JohnDeere

  • 8/14/2019 Sales n Distri - Oct 4 Th

    4/25

    INTRODUCTION

    The GREEN AND YELLOW TRACTORS

    Entered in India in 2002 and is at fifth position in Indian

    Market.

    In Indian market JD potential competitors are Mahindra

    and Mahindra, TAFE, Escorts, New Holland Ford etc.

    It is the No. 1 exporter of tractors in India exportingalmost 60% of the production.

    Offers a wide range of tractors from 35 hp to 70 hp.

    John Deere

  • 8/14/2019 Sales n Distri - Oct 4 Th

    5/25

    JOHN DEERE EQUIPMENT, SANASWADI PUNE

    John Deere Equipment Private Limited is a subsidiary ofDeere & Company, USA in India. Its factory, locatednear Pune, manufactures 5000 Series agriculturaltractors.

    John Deere

  • 8/14/2019 Sales n Distri - Oct 4 Th

    6/25

    THEMODELSOFFEREDIN INDIA

    MODEL Hp5103 Economy 35

    5103 405103 Super 42

    5104 455203 47

    5203 Super 505204 505310 55

    5310 MFWD 555410 65

    5310 Super 70

    John Deere

  • 8/14/2019 Sales n Distri - Oct 4 Th

    7/25

    John Deere

    SALES ORGANISATIONSTRUCTURE (INDIA)

  • 8/14/2019 Sales n Distri - Oct 4 Th

    8/25

    John Deere

    SALES ORGANISATION STRUCTURE(MAHARASTRA)

    Territory

    Manager

    Assistant

    territory

    Manager 1

    Assistant

    territory

    Manager 2

    Assistant

    Territory

    Manager 3

    Assistant

    territory

    manager 4

    Office

    Assistant

    Demonstrat-ors

    and exchange

    experts

    Dealers & sub

    dealers

  • 8/14/2019 Sales n Distri - Oct 4 Th

    9/25

    In Maharashtra, state is roughly divided into four zonesviz. east, west, north, south.

    Each assistant territory manager is assigned one zonewhich comprises of five to six districts.

    Demonstrators and Exchange experts play vital role instrategic selling.

    John Deere

    SALES ORGANISATION STRUCTURE

    (MAHARASTRA)

  • 8/14/2019 Sales n Distri - Oct 4 Th

    10/25

    Different theories that companies adopt for selling theirproduct, JD prefers AIDAS Theory. AIDAS means:

    A - Attract

    I - Develop Interest D - Deliver

    A - Action

    S - Satisfy

    John Deere

    SALES ORGANISATION STRUCTURE

    (MAHARASTRA)

  • 8/14/2019 Sales n Distri - Oct 4 Th

    11/25

    John Deere

    DISTRIBUTION NETWORK

    INDIA

  • 8/14/2019 Sales n Distri - Oct 4 Th

    12/25

    Head office (PUNE)

    Factory(PUNE)

    Area office(14)

    Learning & DevelopmentCentres(4)

  • 8/14/2019 Sales n Distri - Oct 4 Th

    13/25

    AREAOFFICES

    Ahmedabad

    Bangalore

    Bhopal

    Bhubaneswar Chandigarh

    Chennai

    Hyderabad

    Jaipur

    Kolkata

    Lucknow

    Patna Pune

    Raipur

    Udaipur

  • 8/14/2019 Sales n Distri - Oct 4 Th

    14/25

  • 8/14/2019 Sales n Distri - Oct 4 Th

    15/25

    Operating sales forecast is a prediction of how

    much of a companys product can be soldduring a future period.

    Following are the techniques for forecasting: Jury of Executive Opinion

    Poll of Sales Force Opinion

    Projection of Past SalesSurvey of Customers Buying Plan

    John Deere

    SALES FORECASTING

  • 8/14/2019 Sales n Distri - Oct 4 Th

    16/25

    How sales force actually works andachieve targets at ground level.Territory Assignment

    Budget & Sales Expenditure

    Job Responsibilities

    Pricing Policy

    John Deere

    SALES FORCE EXECUTION

  • 8/14/2019 Sales n Distri - Oct 4 Th

    17/25

    TRAINING CENTRES

    JD emphasises on quality training and development ofits employees as well as dealers and his staff.

    JD has four training centres in India. These centres arelocated at

    Maharashtra - Pune

    West Bengal - Burdwan

    Karnataka - Bengaluru.

    Haryana - Yamuna Nagar

    John Deere

  • 8/14/2019 Sales n Distri - Oct 4 Th

    18/25

    TRAINING CENTRES

    JD conducts customised training programmes at thesetraining centres. Few of which are listed below.

    Product training programme

    Tractor overhaul programme Certified salesman programme

    Refresher programme etc

    It also conducts lectures by different consultants forsales staff and dealers.

    John Deere

  • 8/14/2019 Sales n Distri - Oct 4 Th

    19/25

    TERMS OF TRADE

    Payment Terms

    o

    No credit provided to dealers with the exceptionof big dealers with a good track record - at thesole discretion of the company .

    o Big dealers Max of 15 days credit

    o Max credit is 35 % of the total amount

    o Goods dispatched from manufacturing unit onlyonce payment is received .

    John Deere

  • 8/14/2019 Sales n Distri - Oct 4 Th

    20/25

    o Payment is through RTGS or DD drawnon nationalized banks only .

    o Margin 15 20 % of the cost of thevehicle .

    o Commission The sales staff are

    provided 10 % commission on thetotal margin of dealer .

    o Individual customers are provided loansat attractive rates by GE money via atieup with John Deere .

    o NABARD or other co-operative banksalso provide subsidized loans .

    JohnDeere

  • 8/14/2019 Sales n Distri - Oct 4 Th

    21/25

    DELIVERY TERMS

    The tractors are insured by the company & a PDC ( Pre-Dispatch Check ) is done at the manufacturing unit of thecompany . A unique PDC no is also issued to every tractor .

    The total transportation costs & the insurance costs areborne by the company .

    Dealer Delivery terms

    o The company is responsible for the vehicle till it reachesthe dealers warehouse & the dealer signs the PDI form

    (Pre- Delivery Inspection) .

    John Deere

  • 8/14/2019 Sales n Distri - Oct 4 Th

    22/25

    The dealer checks for any damages & reports it

    to the company immediately & also bills the

    company for any repairs required

    The company does not take back vehicles oncesold to the dealer .

    JohnDeere

  • 8/14/2019 Sales n Distri - Oct 4 Th

    23/25

    Replacement Terms

    The company has long term contracts with transporters & in transit damage isborne by the transporter (outside the ambit of insurance ) .

    If vehicles meet an accident then it is the responisbility of the transporter toreturn the damaged vehicles back to the manufacturing unit .

    If a vehicle is found to be damaged during the PDI , the dealer informs thecompany & if it is covered under insurance the company claims it . The dealer isprovided a holding charge for the damaged vehicle till the insurance is cleared .

    If during PDI any mechanical problem is found , the dealer repairs it and bills thecompany the repair amount .

    John Deere

  • 8/14/2019 Sales n Distri - Oct 4 Th

    24/25

    Linefill Rate

    Replenishment Time 15 days

    John Deere

  • 8/14/2019 Sales n Distri - Oct 4 Th

    25/25

    THANK YOU JohnDeere