Hindusthan Coca Cola Pvt Ltd

Sales StructureSayan Chakraborty

IMT Ghaziabad2014 - 2016

Organizational Structure

Different Roles within STMO

Regional Sales Manager• Looks after the. profit and loss .account of the assigned

territory and the various. analysis that needs to be done • Responsible .for looking. after .the issues .of whether

or .not the sales team is abiding by the .policies that has. been laid by the company

• Responsible for maintaining the cohesiveness of the entire sales. force under him

• Involved in the training and development programs that are there for the Area Sales Manager

• Ensures outlet. merchandising standards. through trade visits

Area Sales Manager• Responsible for all the primary. targets that have. been

assigned to him and his team of sales executives • Accompanies various executives on sales calls when

the .account is crucial .and when some assistance is required and also participates in the training program of them

• Communicates all the company policies and philosophy to his team and is required to maintain good relations .with the clients, major account, legal accounts and other influential. sources in his designated area

• Works with the Distribution team to draw up the route plan of the Route Salesmen

Sales Executives• responsible for secondary target .achivements and is

required to maintain good relations with the retailers, distributors and .dealers

• ensure the smooth execution of the various strategies like selling, promotion etc and takes care of the training program of the distributor salesperson.

• travelling to different markets and distributor points providing them a fair idea as to what is required at the ground level

• information about the needs of the consumers which is helpful in designing marketing campaigns

Presellers• Take orders from retailers. and dealers in the market,

execute various promotional activities• Stay in touch with .them round the year for any operations

related to their day to day job • Every distributor has 3-4 Salesperson of their own who are

on third party payrolls and eventually become Presellers depending on their productivity

Marketing Objectives & Strategy

Obj

ectiv

esThis basically includes. Understanding Customer. Needs, Developing. new products, Increasing. brand awareness, Increasing .profitability, Increasing .Market Share, Diversifications .and Re Launch of any .particular products

Stra

tegi

es

Coca Cola is .using push strategy in. which it uses its sales. force and trade promotion. money to induce. intermediaries to carry, promote .and the sell the .products to .end users. It also uses .pull strategies like .promotions and .advertisements are .used to persuade consumers .to ask the. intermediaries for the company brand product. Marketing strategies generate .sales leads and sales .strategies gain .agreement to purchase. a product or service, therefore generating revenue

P.J.P. (PERMANENT JOURNEY PLAN)

• Day wise .schedule of a market developer .which contains. the names of the outlets to be visited by him coming under the campaign R.E.D where .the project has to be implemented

• After .getting permanent journey plan the next step was to visit the outlets for gaining. initial information of. every individual outlet as well as market. on a whole. The visit to all the outlets. of that area helped in revealing its market condition.

• Visiting the outlets clearly showed the picture .of the market situation prevalent in market.

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PRE SELL CONCEPT Company takes order one day before .and then delivers the product to each route. So this gives more time to market developer to assure RED.Advantages:• This gives .more time to the market developer for the

activation & branding purpose• By this company can easily implement .the RED concept

in better way• Presale concept makes assure of more availability of the

products. in the market• This concept is easy. in processing• By this .concept market .developer can arrange the

product in better way

Market ClassificationThe Market is classified .on two parameters. First one is .Geographic Area. Under this HCCB segments. its market on the basis of region and also on variations as per taste .and income. Second is Competition which includes. strong players like PepsiCo and RC Cola

Segmentation:• Income Level – Divided into three parts: High, Medium

and Low• Consumer. Choice – Divided. into three types :

Convenience Stores, Restaurants and Grocery Stores• Outlet. Volume – Divided into four types : Bronze,

Silver, Gold and Diamond & Platinum

Sales RoleStrategic Role: • Setting sales targets and quotas• Establishing sales quotas• Sales forecasting• Demand planning and sales planning

Control role• Setting up of sales routes• Recruitment and training• Analyzing the sales report

Recruitment & Selection

• The skills that are. mostly sought after .by the company includes productivity, selling skills, improvisation and communication.

• The Area Sales. Manager are mostly .recruited from premier B Schools in the country.

• The Sales Executives are graduates. and are hired .from various B Schools in the country. The initial screening is done by the HR team and final selection is made by the ASM. There is. a preference. for hiring freshers particularly since they want fresh outlook and they believe they have a very robust training structure in place for the new joinees to learn.

• The Selection process involves various activities like Group Discussions., Situational Tasks, Interviews and Psychometric Tests. Fluency in the local language is a must

Training & Development

• ASM goes .through the Management Trainee Program for a minimum of 6 months. Other than that various training programs are arranged round the year

• Sales Executives in contrast goes through a 15 days induction program after joining

The basic aim. is to familiarize them with .the challenges. that are there .on the to .day job. They are given .some time to adapt to their territory and .are sometimes. introduced to. few distributor retailer existing in the region. .Since these .are the people. who promote various products on field they have a session with marketing. Team who understand the objectives and various promotional campaigns that .are in place. They .are also given IT and computer system training. They are also provided with SKU information

Compensation & Targets

• HCCB .pays its sales .employees a basic .salary with incentives .depending on .alloted quotas. The. basic salary .can be around 17,000/- .for a fresher and .it can go up. with the years of experience. Those .who are hired from .competitors like. PepsiCo has the advantage .of negotiating .their base salary based on .their skills

• These are .basically set .keeping .in mind .various parameters. At times. a lot of the parameters .mentioned .below are .combined .together .and a final decision .is taken. Some of the .parameters are Industry Growth, . .Last Year Sales, . Company Profits, Advertising .Budget, Operating. Plan. The .target .is generally set giving a .weightage. to a .few parameters. considered. by the .Regional .Sales Manager. The target .is generally set .annually. which. gets divided into .monthly and further. subdivided into .weekly

Performance Ratings• Exceptional Performers(EP) are those who

exceed .their allocated quota in terms of quality and quantity

• Successful Performers (SP) are those who. meet their allocated .quota

• Developing performers(DP) are those whose contributions meet some/most .of the quota but. necessary improvements are expected

• No performers(NP) are those who .did not meet their stated quota for quite a .considerable amount of time

AppraisalsThe steps involved in Performance Measurement steps at HCCB is as follows• Step 1 - Annual .Performance Review which involves assesing

results and prepare. a development. plan• Step 2 – Planning performance of the year which involves

finalising on the development plan• Step 3 - Rewards and Recognition which involves identifying the

performers and generate performance .linked pay and. other benefits

• Step 4 - Mid Term Review. which involves revewing the competencies of the development plan

• The steps. involved in appraising. the salesperson .performance involves defining the job, appraising the performance and providing feedback. Performance review meetings are very common within HCCB

Rew

ards

The rewards. are provided .on an Annual, Monthly .and Quaterly .basis. The Annual performers .are rewarded with salary .increase, Grade Jump. and sometimes .change in designation. The monthly .performers are rewarded. with the title ‘Making .the Move’ while the quarterly. performers with the title. ‘Employee of the Quarter’. The .quaterly system is not practised. much though.

Mot

ivat

ionEmployees. are

provided incentives. based on quarterly performance .and it is measured in number. of units sold or total .revenue generated. There is a concept .of UNIT incentives where every .salesperson adding .a new unit is .eligible for it. Achivers. are provided .with various electronic .goods and with .certificates and .trophies. Sometimes. Dine Out is .also provided with .Senior Executives .of the .company. to make them .feel important

Motivation & Rewards

Sales PromotionThe various .sales promotion activities .that are implemented .by HCCB includes. Price Offs, .Discount .Sales, Buy 1 .Get 1 etc. Besides .these there are .other lucrative offers. like Gold Coins .for High performing .Distributors, Paid. Foreign Trips, Gifting .Branded watches, Dinner .Meet for .retailers. • Some of the promotional offers that are currently valid now Soft .Drink : 1 case. (600 ml bottles) . + 2*500ml. soda free

2 case . (600 ml bottles) .+ 5*500ml .soda free• 1 case. ( 2 litre bottles) . + 2*500 ml .soda free

1 case. (1.25 litre bottles) .+ 1.25 litre. Limca free Juice : 1 case. (1.25 litre Mazaa) + .1.25 litre .Mazaa free Water : . 5 box .(15*5) . + 1 box .free 

Sales Coverage• It is the responsibility. of the .FLSM to ensure. that all the.

salesperson are .following an optimised .route that. includes the .active accounts as. well as potential. accounts. The IDAS software .is in place. which contains. the details of all. the retailers and .distributors in various .territories and .on entering a few. parameters which .are set according .to the objectives .for the day, the. software generates .a route. The main .function of the .software is to ensure .that the expenses .are minimal keeping .in mind the .coverage that .each salesperson .has to do to .meet their .targets. Each salesperson .were provided. with a Blackberry .with which the system .was synced .and .the GPS of the .phone used to .serve as a basis. for evaluating .whether or. not the salesperson. is following the .given orders. Recently the use .of blackberry has .stopped with the advent of various smartphones but the salespersons are provided with a palmtop for the purpose of order taking.

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Sales ProgramRED (Right Execution Daily)

• The objective of this program is to ensure that the coolers are in the prime position in the outlet with clear visibility. The products of HCCB has to be in the order specified that is Coke – Fanta – Sprite – Limca – Thums up – Maaza. The salesperson are to ensure that the availability is always there. It is a must that two of the shelves must be filled with Immediate consumption packs.

• The Area Sales Manager is responsible for ensuring that this program is happening smoothly and the Sales Team Lead is required to submit a report for all the salespersons under him.

• Implementation starts with a meeting with a Distributor and 3-4 Pre Sellers for half to one hour to discuss the agenda for the day where the performance of everyone is reviewed and at the same time it is ensured that they follow a pre journey plan

Recommendation• Since the territory is a bit large and it is considered as a Hot Spot

for Delhi NCR region, the Presellers should be increased in number to ensure smooth functioning. It has been pointed out by my FLSM that sometimes Thumbs Up whose sales are highest at the moment are not available at various junctures

• Also the salary for fresh Graduates are quite low and hence sometimes they are demotivated and are looking for fresh jobs while they are on duty

• The communication is also an issue at specific points like if any salesperson is on leave and the outlets he serves requires some immediate restocking. Hence a new policy should be implemented for addressing such issues.

• A special section should be in place for high profile hospitality segment since the territory is filled with such. The shelf display can also be implemented in restaurants which is currently missing