Master Sun Consulting: Sales & Distribution Services

Master Sun Consulting Difference Connect vision with execution. We specialize in execution We focus on achieving Progress & Outcomes and not on writing reports Accountable, deliver measurable financial results End-to-end execution solutions provider along with partners From Outsourcing to Pure Consulting, Fund Raising to IT Put our money where our mouth is For Long Term Projects open to low fees & high profit share Focus on the building blocks of the organization Processes, Systems, Practices & Procedures Create a joint venture with the client’s management team Steering Committee, Risk Management, Task Force Work both top-down, bottom-up Senior management to field staff. CEO to ‘Peon’ Cohesive strategy for integrating people Competencies, Culture, Attitudes to Workplace

Connect vision with execution. We specialize in execution

We focus on achieving Progress & Outcomes and not on writing reports

Accountable, deliver measurable financial results

End-to-end execution solutions provider along with partners

From Outsourcing to Pure Consulting, Fund Raising to IT

Put our money where our mouth is

For Long Term Projects open to low fees & high profit share

Focus on the building blocks of the organization

Processes, Systems, Practices & Procedures

Create a joint venture with the client’s management team

Steering Committee, Risk Management, Task Force

Work both top-down, bottom-up

Senior management to field staff. CEO to ‘Peon’

Cohesive strategy for integrating people

Competencies, Culture, Attitudes to Workplace

Strategy Execution (SE) : Likely Benefits Indicator Improvement Range Sales Volume 5-25% Turnover 5-30% Capacity Utilisation 15-50% Productivity 20-50% Process Efficiency 5-15% TAT Performance 5-40% Margin 5-20% Overhead 5-40% Yield/Quality 5-25% Indicator Improvement Range WIP 10-30% Overtime 20-60% Warranty Costs 15-20% Labour 5-20% Indirect Overheads 15-25% Time to Market 25-35% Brand Indicators 5-25% Throughput 15-40% New Product Development 10-20%

Strategy Execution Process Sustainable Strategy Strategic Direction Executable Strategy Fine-tuned Strategy Output Institutionalization of the process Identification & definition of areas of improvement Development of solution and testing Implementation of solution across all units Activity Challenges the assumption that Strategy comes first, Execution Later Stage Health Check Plan & Pilot Rollout Institutionalization

Strategy Execution: Building Blocks Change Management Minds Path Matrix Communications Attitudes & Climate Change Assessment Measurement Leadership Sponsorship Goal-Setting Follow Through Right Man-Right Job Project Management Progress & Outcomes Estimating Scheduling, WBS Taskforce, MAT Risk Management People Capability Building Leadership Capability Productivity & Flexibility Continuous Improvement Linking HR to Performance Great Place to Work Success of Key Tasks X Impact of Drivers = Success of Strategy Execution Strategic Plan Health Check & Plan Alignment & Measurement - Balanced Scorecard Synergy : Org. Restructuring Systems & Processes Management Control Systems Process Design , Re-engineering Best Practices Standard Operating Procedure IT Strategy & Automation

Sales & Distribution Methodology

Make vs. Buy Alignment Channel Selection: Tradeoffs, Consumer Expectations, Acknowledged Dependency,Product Life Cycle Trade Marketing Distributor Management Institutional Selling Sales & Distribution Strategy

Make vs. Buy Alignment

Channel Selection: Tradeoffs, Consumer Expectations, Acknowledged Dependency,Product Life Cycle

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Make vs. Buy Alignment : Impact on Sales & Distribution

Make vs. Buy Alignment: Impact on Sales & Distribution Market Quasi-vertical Vertical Contracting Integration Integration Selling (only) Manufacturers’ “Captive” Company Sales Representatives Sales Agency Force (direct salespeople) Wholesale Independent Distribution Distribution Distribution Wholesaler Joint Venture Arm Retail Independent Franchise Company Distribution (3rd party) Store Stores Stores

Channel Selection : Trade-Offs

Channel Selection : Consumer Expectations From Channels Reach Lot size Delivery time Product variety Service back up Quality of selling Buying decision Influence of channel Consumer Durables Moderate Single units One day Moderate Very high Very high High involvement High Consumer Non Durables Very high Single units Immediate Moderate / High Negligible Not much Low involvement Negligible

Changes in Life Cycle and Channels:Designer Apparel Introductory Stage Declining/ Death Growth Stage Mature Stage Boutique (e.g., service utility) Off-price Outlets (e.g., convenience utility) Better Department Stores (e.g., selection utility) Merchandisers (e.g., lot size utility) Market Growth Rate Low High Utility Added by Channel Low High

Factors Influencing Marketing Channel Strategies Characteristics of Short Channels Characteristics of Long Channels Market factors Business users Consumers Geographically concentrated Geographically diverse Extensive technical knowledge and regular servicing required Little technical knowledge and regular servicing not required Large orders Small orders Product factors Perishable Durable Complex Standardized Expensive Inexpensive

Factors Influencing Marketing Channel Strategies Characteristics of Short Channels Characteristics of Long Channels Producer factors Manufacturer has adequate resources to perform channel functions Manufacturer lacks adequate resources to perform channel functions Broad product line Limited product line Channel control important Channel control not important Competitive factors Manufacturing feels satisfied with marketing intermediaries’ performance in promoting products Manufacturer feels dissatisfied with marketing intermediaries’ performance in promoting products

Trade Marketing Distributor Management Institutional Selling Sales & Distribution Strategy Sales Strategy Framework Sales Management Control System SPIN Approach To Selling Sales Force Management Incentive Planning Sales Meeting & Everyday Effectiveness

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Sales Strategy Framework Buying Situation Buying Center Buying Process Buying Needs Account Targeting Strategy Relationship Strategy Sales Channel Strategy Selling Strategy Account Salesperson Sales Strategy Organizational Buyer Behavior

Sales Strategy Account Targeting Strategy Classify accounts so you can develop strategic approaches for selling to each category Possible basis for classification: Account size Account potential Desirability of the account Selling Strategy What approach will you use to establish the relationships that you decided on above? What type of sales presentation would you use to build a transactional relationship? What type of sales presentation would you use to build a collaborative relationship?

Account Targeting Strategy

Classify accounts so you can develop strategic approaches for selling to each category

Possible basis for classification:

Account size

Account potential

Desirability of the account

Selling Strategy

What approach will you use to establish the relationships that you decided on above?

What type of sales presentation would you use to build a transactional relationship?

What type of sales presentation would you use to build a collaborative relationship?

What Makes Up The Sales Strategy Relationship Strategy What type of relationship do you want to establish with each of the above categories Transaction relationship? Solutions relationship? Partnering relationship? Collaborative relationship? The closer the relationship, the higher the costs! For example … What type of relationship do you want to have with “C” level accounts (small size, slow growth)? How about “A” level accounts (important, large customers)?

Relationship Strategy

What type of relationship do you want to establish with each of the above categories

Transaction relationship?

Solutions relationship?

Partnering relationship?

Collaborative relationship?

The closer the relationship, the higher the costs!

For example …

What type of relationship do you want to have with “C” level accounts (small size, slow growth)?

How about “A” level accounts (important, large customers)?

Sales Management Control System-Example BC members Sales/ Mkt Head Sales Force Forecast Plan Control Report Mission, Vision, Corporate Values, Group Policy Annual Business Plan Annual Operating Plan Five Year Business Plan Monthly sales Plan Quarterly sales Plan Weekly sales Plan Cumulative Weekly Score Card Monthly Score Card Quarterly Sales Report Annual sales Report Business head Daily Activity Control Sheet Daily Score Card Forecast Last year performance Marketing Info Sys Financial Budget Resource Planning Census Contact Strategy Corporate policy Seg.Head Weekly Contact Plan Check List Review of annual Sales plan Review Action Log Review Action Log Review Action Log

Spin Selling –Needs Creation Selling SPIN - an easy way to remember the basic model and process for 'needs-creation selling' S - Situation Discuss, understand or explain the situation with the prospect P - Problem Next identify the problem that exists or could arise. I - Implication Explain, discuss or understand the implication of the problem for the prospect's business (i.e.., what organizational improvement can potentially be achieved) N - Need This effectively creates a need or opportunity to rectify the problem (with the sales person's product/service).

Sales Force Management Framework Recruiting/Selection Objectives Training Objectives Person Outcomes Job Outcomes Realism Job Satisfaction Initiation to Task Job Involvement/ Commitment Congruence Resolution of Conflicting Demands at Work Performance Role Definition Task Specific Self -Esteem

Incentive Planning-Approach Pure Commission Quota Territory Share Goal Share/Share Change Relative Measure Relative Rank Flat Rate High Motivation High ROI Low Motivation Low ROI

Pure Commission

Quota

Territory Share Goal

Share/Share Change

Relative Measure

Relative Rank

Flat Rate

High Motivation

High ROI

Low Motivation

Low ROI

Understanding the Continuum of Incentive Plans Since the pure commission plan has the highest potential ROI and the highest Motivation effect why would we not use this in all cases? This plan at the top of the continuum only work when the forecast is perfect. If the plan is under-forecast the corporation can largely over pay. If the plan is over-forecast the sales force will quickly become unmotivated. A variance of more than 15% in the forecast can cause drastic over or underpayments. Most commission plans do not have a linear payout and consequently 15% low in share or units can result in 30% low in payout. And vice versa.

Since the pure commission plan has the highest potential ROI and the highest Motivation effect why would we not use this in all cases?

This plan at the top of the continuum only work when the forecast is perfect.

If the plan is under-forecast the corporation can largely over pay.

If the plan is over-forecast the sales force will quickly become unmotivated.

A variance of more than 15% in the forecast can cause drastic over or underpayments.

Most commission plans do not have a linear payout and consequently 15% low in share or units can result in 30% low in payout. And vice versa.

Productivity Study : Day in the Life Of Salesman A full day in the life of a salesman studied & time spent on Active selling Passive Selling Administration Delivery Order Taking Traveling Available/Free Comparison of Reality Perception Ideal Diagnosis of sales man’s productivity & alignment to business needs

A full day in the life of a salesman studied & time spent on

Active selling

Passive Selling

Administration

Delivery Order Taking

Traveling

Available/Free

Comparison of

Reality

Perception

Ideal

Diagnosis of sales man’s productivity & alignment to business needs

Selling Execution: Salesman Checklist Compliance Pre-meeting, Meeting & Post-meeting issues analyzed on Preparation, Building relationship, Identifying needs & objections, closing & administration Diagnosis of sales man’s selling effectiveness & alignment to business needs

Pre-meeting, Meeting & Post-meeting issues analyzed on

Preparation, Building relationship, Identifying needs & objections, closing & administration

Diagnosis of sales man’s selling effectiveness & alignment to business needs

Sales Audit : Sales Meeting Effectiveness Analyzes the effectiveness of salesman during the course of the meeting Analyzes soft sales skills Diagnosis of sales man’s soft skills & re-training priorities assessed

Analyzes the effectiveness of salesman during the course of the meeting

Analyzes soft sales skills

Diagnosis of sales man’s soft skills & re-training priorities assessed

Trade Marketing Distributor Management Institutional Selling Sales & Distribution Strategy Channel Design Channel Management Termination & Appointment Distributor Economic Model Policy Framework Management Control System Performance Management Distributor Feedback

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Trade Marketing Distributor Management Institutional Selling Sales & Distribution Strategy Channel Design Channel Management Termination & Appointment Distributor Economic Model Policy Framework Management Control System Performance Management Distributor Feedback

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Marketing Channels: Issues and Answers What is channel design? Decisions associated with forming new or altering existing channels. Why are design decisions critical? They directly influence all other marketing decisions. Key external resource for many manufacturers. How do marketing functions factor into design decisions? Who performs what channel function more efficiently and effectively. When is it time for channel redesign? When a new firm is established, new product introduced, new market targeted, external environment change, or when there is a change or performance failure of channel members.

What is channel design?

Decisions associated with forming new or altering existing channels.

Why are design decisions critical?

They directly influence all other marketing decisions.

Key external resource for many manufacturers.

How do marketing functions factor into design decisions?

Who performs what channel function more efficiently and effectively.

When is it time for channel redesign?

When a new firm is established, new product introduced, new market targeted, external environment change, or when there is a change or performance failure of channel members.

Five Marketing Functions in an Automobile Channel Information Function Promotion Function Customer Customer Customer Customer Advertising Agency Suppliers Suppliers Suppliers Suppliers Suppliers Physical Function Title Function Payment Function Customer Transporters Warehouses Manufacture r Transporters Warehouses Dealers Transporters Manufacturer Dealers Banks Manufacture r Banks Dealers Banks Transporters Warehouses Banks Manufacturer Transporters Warehouses Banks Dealers Transporters Banks Manufacturer Advertising Agency Dealers

Issues of Control vs. Resources in Channel Design Intermediary’s Control Over Channel Functions Manufacturer’s Financial Resources Manufacturer’s Financial Resources Fewer financial resources required Less control given up More financial resources required More control given up Number of Intermediaries Few Many High Low

Channel Design : Acknowledged Dependency Eveready Electrolux Raymonds VNC

Design Challenges : Distributing Auto Accessories Vs. Auto Spare Parts Accessories Spare Parts Independent network of accessory distributors. The accessory distributors do not distribute spare parts. Independent network of spare parts distributors/stockists. Spare part distributors do not distribute accessories Target audience is the accessory Institutional er /installer Target audience is the workshops and mechanics. Mechanics create a pull for the product ‘ Push’ product.Demand for accessories have to be created ‘ Pull’ product. Require competitive selling , “incentives” to induce Institutional ers to sell our brands Selling by order taking Typical promotion will be an ad in an auto magazine like Overdrive, with massive POP support(banners, posters, product displays and demo boards etc.) A typical promotion will be mechanic contact programmes where company MSRs will educate/train/sell to mechanics

Trade Marketing Distribution Management Institutional Selling Sales & Distribution Strategy Channel Design Channel Management Termination & Appointment Distributor Economic Model Policy Framework Management Control System Performance Management Distributor Feedback

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Channel Management -Management Challenges Key Challenges Maximize channel revenue & profitability Increase partner loyalty Improve collaborative sales, marketing and service Enhance visibility into channel performance Optimize resources across programs

Key Challenges

Maximize channel revenue & profitability

Increase partner loyalty

Improve collaborative sales, marketing and service

Enhance visibility into channel performance

Optimize resources across programs

Channel Management-Best Practices Integrated Partner Program Management Closed-loop Collaborative Business Planning Collaborative Campaign Design & Execution Score-based Partner Performance Management Real-time Partner Lead Management Coordinated Lead Registration Collaborative Service Network Management

Integrated Partner Program Management

Closed-loop Collaborative Business Planning

Collaborative Campaign Design & Execution

Score-based Partner Performance Management

Real-time Partner Lead Management

Coordinated Lead Registration

Collaborative Service Network Management

Channel Management- Distribution Activities 1) Hold the goods (storage, delivery costs) 2) Own the goods (inventory carrying costs) 3) Promote (sell, advertise, public relations, trade deals) 4) Negotiate (takes time and money) 5) Finance (credit, terms and conditions of sale) 6) Assume risks (price guarantees, warranties, insurance, repair, after-sales service) 7) Assume costs of processing orders (often greater than cost of items!) 8) Handle payment (collection, bad debt)

1) Hold the goods (storage, delivery costs)

2) Own the goods (inventory carrying costs)

3) Promote (sell, advertise, public relations, trade deals)

4) Negotiate (takes time and money)

5) Finance (credit, terms and conditions of sale)

6) Assume risks (price guarantees, warranties, insurance, repair, after-sales service)

7) Assume costs of processing orders (often greater than cost of items!)

8) Handle payment (collection, bad debt)

Trade Marketing Distributor Management Institutional Selling Sales & Distribution Strategy Channel Design Channel Management Termination & Appointment Distributor Economic Model Policy Framework Management Control System Performance Management Distributor Feedback

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Termination & Appointment: Termination Termination of Existing Distributor & Appointment of a New One Step 1: Quantify Exit Risk Every termination is a transition.Assess risk associated with transition: Length of agreement Required notice period Inventory levels Distributor marketing/promotional spend Distributor’s annual sales Understand distributor’s culture and company history Employee redundancy Assess new distributor’s willingness to absorb transition cost

Termination of Existing Distributor & Appointment of a New One

Step 1: Quantify Exit Risk

Every termination is a transition.Assess risk associated with transition:

Length of agreement

Required notice period

Inventory levels

Distributor marketing/promotional spend

Distributor’s annual sales

Understand distributor’s culture and company history

Employee redundancy

Assess new distributor’s willingness to absorb transition cost

Termination & Appointment: Termination Step 2: Define transition period:period usually concurrent with the notice of termination period Step 3: Define transition services, if necessary preservation of shelf space/warehouse space generation of certain trade reports logistics and warehousing support delivery of product remaining at end of transition period Step 4: Embody final transition terms in written agreement Waiver of claims Reconciliation of all receivables/payables Return of marketing materials

Step 2: Define transition period:period usually concurrent with the notice of termination period

Step 3: Define transition services, if necessary

preservation of shelf space/warehouse space

generation of certain trade reports

logistics and warehousing support

delivery of product remaining at end of transition period

Step 4: Embody final transition terms in written agreement

Waiver of claims

Reconciliation of all receivables/payables

Return of marketing materials

Termination & Appointment : Appointment Appointment of New Distributor Step 1: Get all the facts (Distributor Data Form) Distributor name/address,Territory Length of agreement,Exclusive or Non-Exclusive Performance criteria Credit terms,Delivery terms Step 2: Evaluate and Explain Local Legal Landscape finite term vs. evergreen contract litigation history of distributor dispute resolution (arbitration, mediation)

Appointment of New Distributor

Step 1: Get all the facts (Distributor Data Form)

Distributor name/address,Territory

Length of agreement,Exclusive or Non-Exclusive

Performance criteria

Credit terms,Delivery terms

Step 2: Evaluate and Explain Local Legal Landscape

finite term vs. evergreen contract

litigation history of distributor

dispute resolution (arbitration, mediation)

Termination & Appointment : Selection Criteria

Trade Marketing Distributor Management Institutional Selling Sales & Distribution Strategy Channel Design Channel Management Termination & Appointment Distributor Economic Model Policy Framework Management Control System Performance Management Distributor Feedback

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Distributor Economic Model Objective To estimate the economic viability of the distributor’s business by simulating sales quantities and mix, margins, costs and profitability parameters.

Objective

To estimate the economic viability of the distributor’s business by simulating sales quantities and mix, margins, costs and profitability parameters.

Distributor Economic Model Example- Break Even Analysis

Trade Marketing Distributor Management Institutional Selling Sales & Distribution Strategy Channel Design Channel Management Termination & Appointment Distributor Economic Model Policy Framework Management Control System Performance Management Distributor Feedback

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Policy Framework Exclusive/Non Excusive Scope Territory Breadth Customer Distributor Obligations Terms of Contract Information

Exclusive/Non Excusive

Scope

Territory

Breadth

Customer

Distributor Obligations

Terms of Contract

Information

Policy Framework: Example-Whenever Exclusive Exclusivity could be a key requirement of the distribution appointment, thus: Distributor shall not deal in any competing product directly or indirectly Distributor shall not share his physical assets with any other competing product Distributor shall not share competing products, on which he has direct or indirect control Distributor shall not enter into any partnership or have a sister company for distributing competing products Distributor shall not promote any competing product directly or indirectly Where Company’s product range does not meet market requirements, Company (Segment Manager) will authorize specific competitor products that can be sold by Distributors to complete his product offerings

Exclusivity could be a key requirement of the distribution appointment, thus:

Distributor shall not deal in any competing product directly or indirectly

Distributor shall not share his physical assets with any other competing product

Distributor shall not share competing products, on which he has direct or indirect control

Distributor shall not enter into any partnership or have a sister company for distributing competing products

Distributor shall not promote any competing product directly or indirectly

Where Company’s product range does not meet market requirements, Company (Segment Manager) will authorize specific competitor products that can be sold by Distributors to complete his product offerings

Policy Framework: Example-Territory To ensure smooth working, a designated territory will be assigned to each distributor Distributors will sell to end users and/or manufacturing units and/or retailers lying in the distribution territory assigned to them Under no circumstances will a distributor sell to a customer/party who is neither a retailer and/or end consumer in your territory Under no circumstances will a distributor sell to a retailer/end user who is directly served by Company’s sales force. Company reserves the right to redefine any territory and appoint another Distributor in the redefined territory Any changes will be communicated in writing separately

To ensure smooth working, a designated territory will be assigned to each distributor

Distributors will sell to end users and/or manufacturing units and/or retailers lying in the distribution territory assigned to them

Under no circumstances will a distributor sell to a customer/party who is neither a retailer and/or end consumer in your territory

Under no circumstances will a distributor sell to a retailer/end user who is directly served by Company’s sales force.

Company reserves the right to redefine any territory and appoint another Distributor in the redefined territory

Any changes will be communicated in writing separately

Policy Framework: Example-Breadth Distributor will endeavor to promote the integration of the channel Distributor will be responsible for maximizing value within the chain Distributor will minimize the intermediaries within the chain Distributor will be willing to distribute the complete range of Company’s products To the extent that they are covered in the markets he is serving And is necessary to promote the Company brand

Distributor will endeavor to promote the integration of the channel

Distributor will be responsible for maximizing value within the chain

Distributor will minimize the intermediaries within the chain

Distributor will be willing to distribute the complete range of Company’s products

To the extent that they are covered in the markets he is serving

And is necessary to promote the Company brand

Policy Framework: Example-Distributor Obligations The contract is based upon Distributor commitments of a minimum quantity of sale per month and per quarter Distributor will work towards business growth every year Through mutual discussions, Distributors will arrive at growth targets for sales in their territory. It will be the obligation of the Distributor to exceed these targets Distributor will appoint sales executives to promote the sale of Company’s products as per norms set up by Company Distributor will strictly implement the ‘Management Control System” adopted by Company Distributor will share the promotional costs incurred for the product Distributor will maintain confidentiality of the transactions carried out with Company

The contract is based upon Distributor commitments of a minimum quantity of sale per month and per quarter

Distributor will work towards business growth every year

Through mutual discussions, Distributors will arrive at growth targets for sales in their territory. It will be the obligation of the Distributor to exceed these targets

Distributor will appoint sales executives to promote the sale of Company’s products as per norms set up by Company

Distributor will strictly implement the ‘Management Control System” adopted by Company

Distributor will share the promotional costs incurred for the product

Distributor will maintain confidentiality of the transactions carried out with Company

Policy Framework : Example -Terms and Conditions Performance against Distributors’ commitments of sale Will be reviewed every year and will be the one of the criteria for renewal of contracts for Distributorship Payments Will be strictly on cash against sale (as per price list) Against Bank Guarantee with requisite approval Dishonoring of any financial instrument will attract a penalty of 1%, and interest charges @ 20% p.a. Inventory Manage inventory as per norms (minimum 15 days of sale) set by Company to meet service levels Ensure proper handling and keep material safe from dust, chemicals and other corrosive environment to ensure that it does not deteriorate at the distributor’s premises. Make the stockyard available for inspection by Company executives without prior permission or notice

Performance against Distributors’ commitments of sale

Will be reviewed every year and will be the one of the criteria for renewal of contracts for Distributorship

Payments

Will be strictly on cash against sale (as per price list)

Against Bank Guarantee with requisite approval

Dishonoring of any financial instrument will attract a penalty of 1%, and interest charges @ 20% p.a.

Inventory

Manage inventory as per norms (minimum 15 days of sale) set by Company to meet service levels

Ensure proper handling and keep material safe from dust, chemicals and other corrosive environment to ensure that it does not deteriorate at the distributor’s premises.

Make the stockyard available for inspection by Company executives without prior permission or notice

Policy Framework: Example-Information Distributor will provide complete and full visibility of information on the market, customer, retailers, consumption patterns, storage, accounting policy and records in all his premises to Company Segment Managers and Executives Company reserves the right to audit the Distributors books of accounts, for which full cooperation shall be extended by the Distributor. Total compliance and accuracy of information/data is of critical importance and Willful default and miscommunication of information/data shall lead to termination of Distributorship

Distributor will provide complete and full visibility of information on the market, customer, retailers, consumption patterns, storage, accounting policy and records in all his premises to Company Segment Managers and Executives

Company reserves the right to audit the Distributors books of accounts, for which full cooperation shall be extended by the Distributor.

Total compliance and accuracy of information/data is of critical importance and

Willful default and miscommunication of information/data shall lead to termination of Distributorship

Trade Marketing Distributor Management Institutional Selling Sales & Distribution Strategy Channel Design Channel Management Termination & Appointment Distributor Economic Model Policy Framework Management Control System Performance Management Distributor Feedback

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Distributor Management Control System-Example Forecast Plan Control Report Manager Institutional Distributor DSM Institutional er / Customer Sales Plan Route plan Contact Plan Customer / Institutional Card DSM Daily Score Card Territory Sales Target Institutional Manager Contact Plan Distributor Coverage Target DSM Target DSM Weekly Score Card DSM Monthly Score Card Distributor Weekly Score Card Distributor Monthly Score Card Review Distributor Sales Target Market Intelligence Institutional Mgr Segment Manager Marketing Department Review Review Segment Mgr Monthly Score Card Institutional Mgr Ride with Segment Mgr Weekly Score Card Segment Sales Target Review Distributor Daily Score Card Review Direct Sales input Institutional Mgr Daily Score Card Review Review Review Review Segment Mgr Daily Score Card Review Review Review Distributor Quarterly ROI Analysis Marketing Ride with Institutional Mgr Weekly Score Card Institutional Mgr Monthly Score Card

Trade Marketing Distributor Management Institutional Selling Sales & Distribution Strategy Channel Design Channel Management Termination & Appointment Distributor Economic Model Policy Framework Management Control System Performance Management Distributor Feedback

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Channel Partner Performance Measurement -Best Practice Best Practice Structured partner manager methodology Partner Scorecards Expend resources on top performing & high potential partners (A’s) Benefits Scalable, fair approach to managing partnerships Quantitative measure of partners’ total contribution Aggregate portfolio performance improves,Partner loyalty increases

Best Practice

Structured partner manager methodology

Partner Scorecards

Expend resources on top performing & high potential partners (A’s)

Benefits

Scalable, fair approach to managing partnerships

Quantitative measure of partners’ total contribution

Aggregate portfolio performance improves,Partner loyalty increases

Trade Marketing Distributor Management Institutional Selling Sales & Distribution Strategy Channel Design Channel Management Termination & Appointment Distributor Economic Model Policy Framework Management Control System Performance Management Distributor Feedback

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Channel Feedback Example- Company Image Associations (Image 1 : Customer Oriented) (Image 2: Market Oriented) (Image 3: Wide service network) (Image 4: Mkt.leader/fin. strong)

Channel Feedback Example : Key Driver Analysis- Ordering & Delivery Impact Performance * High Impact ** No Impact Overall quality of Ordering & Delivery Electrolux ** ** ** Ease of communicating orders to the sales personnel Time taken for delivery Condition of goods delivered Availability of model/capacity Support for urgent deliveries Product handling by CFA Availability of spare parts Availability of specific colour Ease of ordering documentation Efficient inventory management * * * Godrej Whirlpool 34 40 34 34 43 29 29 34 35 40 34 64  61  64  61  61 61  52  66  55  59 52 50  52 50  53  58 54  58  52  50  47 46 Very Good Excellent

Distributor Feedback Example- Overall Company Processes

Trade Marketing Distributor Management Institutional Selling Sales & Distribution Strategy 3 P’s Presence Other P’s Trade Marketing Scorecard Trade Marketing Disciplines

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Trade Marketing Distributor Management Institutional Selling Sales & Distribution Strategy 3 P’s Presence Other P’s Trade Marketing Scorecard Trade Marketing Disciplines

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3 P’s of Trade Marketing If you are not there you don’t sell : Presence If you are not at the right place you sell less : Position If you are not best presented you don’t maximizes sales : Presentation

If you are not there you don’t sell : Presence

If you are not at the right place you sell less : Position

If you are not best presented you don’t maximizes sales : Presentation

Trade Marketing Distributor Management Institutional Selling Sales & Distribution Strategy 3 P’s Presence Other P’s Trade Marketing Scorecard Trade Marketing Disciplines

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Presence: Competitive Analysis Example Ambuja emerges as a strong competitor to Haathi in the city

Presence: Self Analysis Example 15 10 10 12

Correlation between Sales Visit & Outlet Share Relationship between Sales Visits and Outlet Share 0% 10% 20% 30% 40% 50% 60% 70% 80% 1 2 3 4 5 No. of sales visits per month Outlet Share of Eveready Linear co-relation between sales vists and outlet share Correlation between service and outlet share. Service provided (reflected by sales visits) is a competitive advantage

Trade Marketing Distributor Management Institutional Selling Sales & Distribution Strategy 3 P’s Presence Other P’s Trade Marketing Scorecard Trade Marketing Disciplines

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Other P’s : Position For the brand to really make a difference it needs to sit at the hotspot

For the brand to really make a difference it needs to sit at the hotspot

Implications on Trade Marketing: Presentation Presentation is vital to maximizing sales

Presentation is vital to maximizing sales

Trade Marketing Distributor Management Institutional Selling Sales & Distribution Strategy 3 P’s Presence Other P’s Trade Marketing Scorecard Trade Marketing Disciplines

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Trade Marketing :Score Card

Trade Marketing Distributor Management Institutional Selling Sales & Distribution Strategy 3 P’s Presence Other P’s Trade Marketing Scorecard Trade Marketing Disciplines

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Trade Marketing Disciplines: Anywhere One Price Administering price & preventing under-cutting is one of the key discipline for trade marketing

Administering price & preventing under-cutting is one of the key discipline for trade marketing

Trade Marketing Disciplines: Continuous Audit Continuous internal audit, validated by external one is a key requirement for ensuring continuous feedback & improvement opportunities for trade marketing

Continuous internal audit, validated by external one is a key requirement for ensuring continuous feedback & improvement opportunities for trade marketing

Credentials

Managing Partner -Sarvajeet Chandra Organizations Worked For : ICICI Bank, Renoir Consulting (UK), Baazee.com ( now Ebay), Ogilvy & Mather Sales & Distribution Operations/ Service Quality Brand Building Capability Development FMCG/Institutional ITC( ITD Division) Eveready Travelport MSM Eveready Kodak Shringar Cinema (Fame) Infrastructure , Industrial & Real Estate Saurashtra Cement VNC Group Tata Steel Lavendor Group Mandala Asset Solutions Lion Group Tata Steel VNC Group Gujarat Glass Saurashtra Cement Pidilite (Fevicol, Fevikwik, Fevistik) VNC Group Tata Steel Textile, Leather & Commodities Tata International Indo Rama Texmaco Group Laxmi Machine Works Tata International ITC (IBD Division) World Gold Council Banking, Media, IT, Hospitality & Others Xenos Blue Star Cidade de Goa ICICI Bank Thanjavur Hotel Residence Cidade de Goa STAR TV EBay India MIHMCT Vizualize LBi India Systime JW Mariott GTL Limited BST-Sayona

Profile of Partners – Jasravee Kaur Organizations Worked For : Lowe Lintas, Percept Group, Research International, AC Nielsen ORG Marg FMCG Institutional Media, Banking & Others Marketing & Brand Management Hindustan Unilever (Lifebuoy Hamam Fair & Lovely Kisan Annapurna Liril Dove Lux) Camlin Old Spice Coca Cola Unilever Thailand Unilever Brazil Fame Adlabs Pantaloon Central Essar Petro Institutional ing Welspun Spaces Bank of Baroda Sahara One STAR Rediff.com CNN FedEx VNC Group (Bestarc Bestfence Bestwire) ITC IBD Saurashtra Cement Tata Wiron Training in Marketing/Brand Management Xaviers Institute of Communications North Point Lintas School

Master Sun Projects Large & Medium Cap Companies

“ You see, all the right things are written in books and research papers. The trick is to ensure that there is no gap between what is written in the books and your vision; from what is happening on the shop-floor and what is going on in the marketplace. That is execution. That is what makes the difference” Mukesh Ambani mastersun.synthasite.com [email_address] Sarvajeet : +91 9920803060 Jasravee : +91 9892301590 Office :+91 22 65209702