2. About the company
The Colgate-Palmolive Company is an American multinational consumer
products company focused on the production, distribution and provision of
household, health care and personal products, such as soaps, detergents,
and oral hygiene products (including toothpaste and toothbrushes).
Colgate-Palmolive is Rs1,300 crore company started in year 1937.In Rs2,400
crore domestic market it enjoys 50% of market share. It spread across 4.5
million retails outlets out of which 1.5 million are direct outlets
In 2011 Colgate-Palmolive (India), the market leader in oral care, in association
with the Indian Dental Association (IDA) achieved the Guinness World
Records™ for ‘maximum number of dental check-ups’ in a single day (multiple
venues)
3. Sales Forecasting (Break down method)(month)
Population 5,763,872
Literacy 65.56%
Sex Ratio (Per 1000) 984
Per capita income Rs 25,442
Total sales potential in Raipur 4,09,25,762.44
Company sales potential (30%) 12,277,728.73
Market potential(in terms of customer) 30,30859
Salary to sales person 15000
Expected return / sales person 4,10,000
No, of sales person employed 30.
4. Build up method (work load, single market)
Category
of dealer
Visiting
freq
No. of
dealer
Avg travel
time
Avg
time/sho
p
Avg min. Total
hours
A 25 8 3 4 96 1.6
B 20 9 3 4 108 1.8
C 15 12 5 4 240 4.00
Total 29 444.00 7.4
ESTIMATED
5. Sales Forecasting
Sales Forecasting is the process of estimating what your business’s
sales are going to be in the future.
Sales forecasting for an established business is easier than sales
forecasting for a new business; the established business already has a
sales forecast baseline of past sales.
A business’s sales revenues from the same month in a previous year,
combined with knowledge of general economic and industry trends,
work well for predicting a business’s sales in a particular future month.
6. Sales Budget
SALES REVENUE BUDGET
Last year sales expected 10,80,00,000 - 100%
Last year achieved 07,45,00,000 - 68.98%
Deficit 3,35,00,000 – 31.02%
Target for current year 16,00,00,000 – 100%
7. Sales Force Expense Budget
For entire Colgate range including new range launched 3cr. has been
decided.
It includes promotion activities, free dental checkup camp, local
advertisements Daily Allowance, design incentive, calculate training
budget and Selling expenditures like Consumer promotional and Trade
promotional Schemes.
Assumed data
10. AVG.Weekly stocking of product in each category
of retail
primarily it is depends upon demand in the market and also based on the sales
in the market.
In general retail which covers maximum part of the market, order taken in
daily basis. The delivery of the product and stock maintain is depend upon
consumption of different SKU.like in every market there is a different order
made daily and deliveries happen according to that.
In this case of Colgate the products has good demand in the market in all
categories,
In general trade dealers they at least maintain one week inventories.
In modern trade order given in bulk quantity, so usually they maintain 15 days
or maximum one month inventory.
12. Distribution Pattern
Intensive:- it s to make sure that the product is made available as many outlet
as possible, so that anywhere the consumer goes they can grab the product.(
local retailer)
Selective:- only few outlets will be permitted to keep the company products.
Outlets are carefully selected by the company in line with image it wants to
project about itself.(few popular dental clinic store, SIS in any retail outlet for
some special offer products)
Exclusive:- only few special outlet operated by the company directly or make
any outlet exclusive by agreement.(company operated dental clinic, checkup
camps)
13. No. Of distributor
In Raipur there is 1 C&F agent and 3 stockist
Under 3 stockist there is 2 wholesaler each and they are operating in 5
urban and 2 rural territories.
14. Purpose of hiring distributor
There are 3 purposes
a) For entering in a new market
b) For additional coverage in the same city
c) For replacing an existing distributor
before deciding whether distributor is required or not town profiling is done.
15. Training of distributor
How to manage demand and stocks
Handling product promotion
Information about new product
Participating in promotional events
To promote the products well in the market
16. Motivating tools for distributors
Sales target achieving incentives
Quantity purchases discount sales contests with attractive prizes in
Inviting distributor for important company meetings
Gifts, sales support
Other motivating incentives like holiday packages and others.
17. Evaluation of sales person
one of the most popular way to evaluate the dealer which is assigned target
achieved or not. where is the gap to achieve the target
Some other parameters
Efforts on new products
Performance on institutional business
Adding and developing new markets and outlets
Handling market complaints
Timely report submission
18. Vertical & Horizontal conflicts
Horizontal Conflicts
A horizontal conflict refers to a disagreement among two or more channel
members at the same level. For example, suppose manufacturer has deals with
two wholesalers, each contracted to sell products to retailers in different
territories . If one wholesaler decides to branch its operations into the other
wholesaler’s territory, a conflict will result.
Vertical Conflicts
Vertical conflicts involve a disagreement between two channel members on
consecutive levels. For example, if the manufacturer discovers its products are
arriving at retail stores later than scheduled, a conflict might develop between
the manufacturer and the wholesaler responsible for shipping to retailers. At
the same time, the retail stores might be in conflict with the wholesaler due to
its inability to ship products on time.
19. Distribution costs
Distribution costs (also known as “Distribution Expenses”) are usually
defined as the costs incurred to deliver the product from the production unit to
the end user.
Product handling cost.
Store house cost
Product transit cost
Loading, unloading cost
Transportation cost
Vehicle cost
Office expenses
Other cost
22. Arrangement of Special Deliveries in exigencies
In the case of urgent order company/ c&f maintain a emergency
inventory
When order placed that time without any delay stocks are putting into
transit
This kind of situation happen at the time of Any event, sudden
shortage, so company ready with this kind of mechanism
23. Delivery mechanism of distributor
Here I am assuming in Raipur there is 7 territories and 12 vehicle for
distribution
for 6 territories there is 6 vehicle assigned and, there is 1 driver and 2
loaders assigned.
For other 2 territories there is 2 vehicle for each territory. Other 2
vehicle are for small orders and for other purpose
