Sales Structure of Tapal Tea (Pvt) Limited


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  • 4ps – Mimi
  • Sales Structure of Tapal Tea (Pvt) Limited

    1. 1. Sales Management Presented by: Anum Mohsin Imad Baig Maryum Zehra Saisha Fatima Sehrish Rizvi
    2. 2. Facts- Tea consumption in Pakistan <ul><li>Pakistan’s annual Tea Demand is 160,000 tones annually and per capita tea consumption is 1 Kg. </li></ul><ul><li>Pakistan imports Tea from Bangladesh, Sri Lanka, Kenya, Nepal and India. </li></ul><ul><li>The tea market is divided into 2 segments: Branded and Unbranded. </li></ul><ul><li>Branded market is further subdivided by 2 major market players: Unilever’s Lipton, Brookebond and Tapal. </li></ul>
    3. 3. Tapal- An overview <ul><li>In 1947, Tapal started out as a family business under Adam Ali (founder) Tapal. </li></ul><ul><li>Tapal enjoys a good 34% of the Branded tea market. </li></ul><ul><li>In the Southern region, Tapal is the market leader with 65% of the market share where Karachi is the hub. </li></ul><ul><li>Currently there are 375-400 permanent employees. If we include the outsourced ones it would be approximately 3000. </li></ul>
    4. 4. The 4Ps at Tapal
    5. 5. Tapal Brands/Products Safari Tapal Ice tea Gulbahar Chenak Family mixture Tezdum Mezban Danedar TAPAL BRANDS
    6. 6. Continued… <ul><li>Price - Competitive prices and partially uses differentiation strategy. </li></ul><ul><li>Place - Tea is supplied through a distribution network and is made available at retail outlets, wholesale shops, institutions and utility stores. </li></ul><ul><li>Promotion – </li></ul><ul><ul><li>Tapal Ice Tea Sachet Launch </li></ul></ul><ul><ul><li>Buy 1 Family Mixture Jar and get 5 Complimentary Green Tea Sachets </li></ul></ul><ul><ul><li>Buy 100 Tapal Danedar Tea Bags and get a Complimentary Tapal Mug </li></ul></ul><ul><ul><li>Other various consistent trade offers also take place from time to time. </li></ul></ul>
    7. 7. Tapal- Sales Management
    8. 8. The selling process (customers & distributors) <ul><li>Modern trade- Chains like Makro, Aghas, Naheed store are dealt directly through Tapal salespeople or limited distributors. </li></ul><ul><li>General trade- Third Party distributors are responsible to supply tea to various geographic areas. </li></ul>
    9. 9. Continued… <ul><li>USC/CSD- The category includes government utility stores and army welfare shops. USC/CSD Executive is appointed and is responsible for maintaining healthy business/ personal relationship, for range selling at warehouse/outlets and randomly visiting USC/CSD outlets for checking the stock availability. </li></ul><ul><li>Out of home- Out of home consumers includes institutions, hotels, daabas and direct consumption. Specific salespeople are responsible to deal with these customers. </li></ul>
    10. 10. Sales structure
    11. 11. Sales structure <ul><li>Sales Manager- There are 2 sales managers. </li></ul><ul><li>Regional Manager- Tapal has divided itself into 6 regions and each has a separate regional manager. </li></ul><ul><li>Zonal Manager- There are 19 zones and zone managers. 4-6 zone managers lie under each region. </li></ul><ul><li>Territory sales executive and sales officer- There are 110 territories and then this is further divided to 475 towns. There is at least 1 distributor and around 6-8 sales people per town. </li></ul>
    12. 12. Order Booking-Technique <ul><li>Tapal’s Territory Executive Officers go to respective assigned distributors and take their orders. </li></ul><ul><li>They do not perform direct order booking. </li></ul><ul><li>The distributors have their own salesmen, who go from shop-to-shop recording the orders accordingly. </li></ul><ul><li>The total amount of all the orders is calculated and then an amalgamated order is placed by the distributor to a Tapal Territory Executive Officer. </li></ul><ul><li>As a channel distribution quality check; once in two months, the Territory Executive Officer and Distributor perform shop-to-shop order booking </li></ul>
    13. 13. Specialized structure - Geographic
    14. 14. Specialized structure - Customer Tapal Tea Pakistan Modern Trade Out of Home USC/CSD General Trade
    15. 15. Sales Forecasting <ul><li>Market potential- It is assumed in this formula that one person consumes at least 1 kg of tea in a year, and given that the population of the country is 160 million, the market potential for tea is 160 million kg. </li></ul><ul><li>Subjective sales forecasting- Jury of Executive opinion and Sales Force Composite. At Tapal forecasting is a mutual activity between the zones, regions and the top management. </li></ul>
    16. 16. Continued… <ul><li>Annual Operating Plan- It is a schedule of events and responsibilities that details the actions to be taken in order to accomplish the goals </li></ul><ul><ul><li>This sales forecast is usually done through the annual operating plan. </li></ul></ul><ul><ul><li>After management approves the overall plan, it is divided into two separate plans, one for the north region and the other for the south region. </li></ul></ul><ul><ul><li>It is prepared through the joint efforts of both the Marketing and Sales department. </li></ul></ul><ul><ul><li>For two months, on the 15th of June and July, rolling forecasts are done, where sales are estimated for the next 3 months in June, and then revised again in July. </li></ul></ul>
    17. 17. Human Resource Management at Tapal
    18. 18. Recruitment <ul><li>Sales people are selected based on their experience in the industry and their overall aptitude. </li></ul><ul><li>Find an individual who is familiar with a particular territory and is likely to stay in the organization long enough to deliver substantial results. </li></ul><ul><li>Sources: </li></ul><ul><ul><li>Referrals </li></ul></ul><ul><ul><li>Newspapers Advertisements (Very Rarely Used) </li></ul></ul>
    19. 19. Selection Procedure <ul><li>Vacancy arises in any of the territories, the need is identified and the HR department is informed. </li></ul><ul><li>Factors Determining Selection for Sales person: </li></ul><ul><ul><li>Vary their approach when selling to the customer. </li></ul></ul><ul><ul><li>Possess Strong Observation Skills </li></ul></ul><ul><ul><li>Identify difficult situations and know how to tackle them efficiently. </li></ul></ul><ul><ul><li>Ethical and honest </li></ul></ul><ul><ul><li>Passionate about selling and their work. </li></ul></ul><ul><ul><li>Pakistani society puts a lot of emphasis on the trust factor; so that a long term relationship can be established. </li></ul></ul><ul><ul><li>Experienced sales person should have an idea of what the future sales will be. </li></ul></ul>
    20. 20. Sales Training <ul><li>Training Programs </li></ul><ul><li>Training Schedule </li></ul><ul><ul><li>Company sales employees: Quarterly training </li></ul></ul><ul><ul><li>Distributors as sales personnel: Yearly training </li></ul></ul><ul><li>Training Objectives </li></ul><ul><ul><li>In depth knowledge of company information and policies is gained. </li></ul></ul><ul><ul><li>Sales presentation and communications skills are developed. </li></ul></ul><ul><ul><li>Sales objectives are clear and well understood </li></ul></ul><ul><ul><li>Product information and technical skills are enhanced </li></ul></ul><ul><ul><li>Customer relation skills are developed. </li></ul></ul>
    21. 21. Motivating The Sales Force <ul><li>Employee Handbook </li></ul><ul><li>Seminars, In-house Training and Job Enrichment </li></ul><ul><li>Tapal Family Circular </li></ul><ul><li>Employee Rights </li></ul><ul><li>Work Policies (Assuring Work-Life Balance) </li></ul>
    22. 22. Motivating Distributors & Traders <ul><li>Point of Sale Displays (Banners & Posters) </li></ul><ul><li>Shop Display Contests </li></ul><ul><li>Shop Boards </li></ul><ul><li>Backlit Vans </li></ul><ul><ul><li>Form of advertising </li></ul></ul><ul><ul><li>Supplying the merchandise to the distributors & traders. </li></ul></ul><ul><ul><li>Used to give away free samples. </li></ul></ul>
    23. 23. Compensation <ul><li>Salary </li></ul><ul><li>Commissions </li></ul><ul><ul><li>The distributor sales personnel receive commissions for the sales they carry out. </li></ul></ul><ul><li>Bonus </li></ul><ul><ul><li>If they exceed targets then they are also given bonuses (AT TIMES). </li></ul></ul><ul><ul><li>Normally 2 targets are given to the employees, one is the Primary target and the other is the Secondary target. </li></ul></ul>
    24. 24. Evaluation <ul><li>Annual Appraisal </li></ul><ul><ul><li>Individuals are evaluated based on their performance through out the year. </li></ul></ul><ul><ul><li>Primary means of evaluating is whether or not they have achieved their targets. </li></ul></ul><ul><ul><li>Each member will be evaluated against other members in the channel. </li></ul></ul><ul><ul><li>For instance sales person in General Trade will be evaluated against other persons in that team. </li></ul></ul>
    25. 25. Conclusion <ul><li>Its dense consumer market lies in Karachi. </li></ul>
    26. 26. Recommendations
    27. 27. <ul><li>Counterfeits of Tapal exist in the market </li></ul><ul><ul><li>Sales personnel should be trained to approach the retailers and encourage them not to keep the counterfeit products. </li></ul></ul><ul><li>Tapal has never been able to secure consistent institutional sales in restaurants and offices. </li></ul><ul><ul><li>Personal selling to institutions including: Restaurants, Hotels and Educational Institutions. </li></ul></ul><ul><li>Extensive training programs are provided for the devoted sales personnel. </li></ul><ul><ul><li>Combination method of compensation should be provided to the personnel. </li></ul></ul><ul><ul><li>Like tying a strong correlation to sales and bonuses. </li></ul></ul><ul><ul><li>A proper structure to get bonuses would motivate sales personnel to achieve more than the secondary target. </li></ul></ul>
    28. 28. Thank You.